One thing you hafta realize is that FA, TA, and all that good stuff have little to do with price action. Especially given current market conditions. That is, they do have some effect but near as much as much other factors. The BB and pinks (and to a lessor extent the AMEX and NASDAQ) are highly subject to MM manipulation on the trading floor. They know you watch the charts, numbers, PR's, etc. and that you expect the pps to react a certain way based on your own assesments of all of the above. Then they manipulate price action opposite from what you expect and guess what? -- YOU LOSE MONEY!
And when YOU lose money THEY make money! Get the picture? The MM's have all sorts of tricks up their sleve to accomplish this end. Intra-floor trading (manipulation), naked short selling, dillution/conversion of huge blocks of held shares, hedge funds, the list goes on. Some of these tactics (such as naked shorting) are highly illegal. Moreso, in fact, than anything Martha Stewart ever did. Yet the SEC turns a blind eye. Strange isn't it?
I have done much better in the BB and pinks by understanding all this ahead of time and placing my bets accordingly. Knowing that the MM's want your money you hafta ask yourself how YOU would play if YOU were trying to fool the betting public. The market is NOT a level playing field. The "house" , or the market, has the advantage. Times have changed but you CAN make a bundle by placing your bets opposite the crowd. Forget "candlesticks" and "number crunching". Some posters will swear up & down for same. Good for them. I've been doing much much better my own way.
Posts: 669 | From: Gouldsboro, Pa. | Registered: May 2006
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Everyone buys when there tons of hype and rumors of news comming...then once the news actually comes out, there's nothing more to hype about or get more momo so everyone sells..
Posts: 2321 | Registered: Aug 2006
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