I have to respectably disagree with you on that strategy, though I do agree completely on your assessment about the shorting situation. I have been investing/trading for around 15 years and the only way you defeat the shorts is buying at the ask to push the share price higher, which makes them start covering. In pennyland, nothing scares a short more than an influx of heavy buying moving the share price higher.
If were to do as you say, we would not only be helping the shorts make some nice gains, we would also be helping to destroy the share price to a point where nobody wants to risk investing in this stock. I always buy at the ask for the simple reason that I want to buy a stock that is moving higher and buying at the ask is the best way to coax the pps upwards. Entering lower bids is only tempting the share to go lower and this plays a huge role for otc stocks.
This technique of buying at the ask has been proven to be one of the best strategies for otc stocks and that is why I only buy at the ask. If I am willing to only buy at a certain price point, I will wait until the ask hits my target price. I never enter low bids with otc stocks, as I said previously, this only helping to push the share price lower on a stock you want to own. With OTC stocks, that is the last thing you want to happen when buying, as it is causing the share price to go lower on a stock you are buying.
Many folks don't understand this and I didn't either until I was showed this by a very successful OTC trader. He proved it many times with so many trades, that I was shocked by how right he was. Ever since, I only buy at the ask for any OTC stock that I want to trade & I will NEVER EVER buy an OTC stock by entering low bids! I hope this makes sense to you and I encourage you to try it and watch what a positive effect it has on a OTC stock, but it is also critical to choose the right entry price by examining the charts thoroughly and reviewing upcoming events for the company you want to buy into. Best of luck to you & thanks for posting your thoughts about how shorting is an outright crime in the OTC markets. Cheers!
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