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Anyone is welcomed to post about anything non stock related. Conversation builds confidence with others.
The main topic of the board is to discuss penny flipping stocks. It would be appreciated to provide share structure and expected enter and exit points. Unrealistic, will shoot to the moon posts will most likely be removed. Honest opinions are always welcomed. The goal is to digest what you will do in the stock, not how you will make us a bagholder.
ANATOMY OF A SCAM
TOXIC TRADING PATTERN
1. Take a shell which you control and buy back as many shares as possible while it has nothing in it and convert loans into more free trading shares such that the majority of all free trading shares are in the hands of the promoters;
2. Find an inventor with a failed technology or an inventor with a hopeful technology but the inventor is broke and the technology is going nowhere;
3. Restructure the deal somewhat to accommodate the inventor but give him restricted shares;
4. Find some dope to act as CEO. It's even better if the CEO is broke and needs money from the scam to survive. In this way the CEO is totally controlled by the scammer promoters.
5. Issue out some Fluffy PR's about how great the technology is
6. Find some individuals in far off places that seem to be legitimate to make claims of contracts and projections.
7. Put out fluffier PR's about how the technology is coming along;
8. Sell some shares to naive investors;
9. Issue some more Fluffy PR's with sales projections.
10. Sell some more free trading shares to new investors buying into the fluffy news about the claimed technology.
11. When the deal ultimately fails, rinse and repeat.
1. PPS drops to .000#
2. R/S the stock
3. PPS drops to .000#
4. Management loads on undervalued shares, while everyone else sold out on panic or anger
5. P&D compaign begins
6. People buy in, stock going up
7. Management Sells
8. Dilute by issuing
9. Repeat Step 1
| RSI || Usually 70 represents overbought which is very bullish for those who are already in, however, generally it means you should think about selling your position. Generally, when a stock is overbought which 70+ represents then a decline is soon to follow. On the converse though, a stock which has an RSI of under 30 means it is oversold which is a bearish indicator, however it could represent a stock which maybe at a time to purchase. RSI should be used in conjunction with fundamentals to understand why the conditions exist in the first place. |
| Channel || Difficult to describe, however a channel represents the average recent high as the top and the average recent low as the bottom. Others may define the channel as upper level being resistance and the lower level being support. However, I have seen channels trade with-in that range. The idea is to flip stocks in the short term for the best possible price at the time. |
| SAR || Parabolic SAR is a weak indicator which implies whether the people are attracted the stock or could be closing their positions. It's more important in my opinion to look for the distance between the par dot and the candle and look for the convergence. For example, if the dots are going to slam into a candle from below; that could indicate a buy signal. Likewise, if the dots are far below the candles, it's a bullish indicator implying a hold. If the dots are about to slam into the top of a candle it could indicate a sell signal, while if the dots are way above the candles I wouldn't recommend taking a position. So, generally above the candle = bad, below the candle = good, unless your goal is to enter a stock at a weak point. |
| MACD || A lot of people like MACD, however, personally that is big board stuff. It crosses all day long. Generally, wider the lines are apart the more affect it has. If the bullish line is above the bearish line then watch for a convergence and possible sell point. Nothing goes up forever. Likewise, if the Bearish line is above the Bullish line then watch the stock for an entry point. |
| Accum/Dist || A deceptive indicator, a lot of people will point to it and say "look at all the people buying". This could actually be showing diluted shares being bought. Watching the line is important however, it should be checked with fundamentals. |