OTCBB/Pink Trading Strategies (strat)

[shakerzzz]

weeeeeeeeeeee

[JohnnyJ]

LSMJ!!!

[americano]

Come fisit the ITSI board and say hello and give your opninion good or bad or in the middle, thanks in advance, I get lonely trying to tell the story of this company, no one much ahs lsitened to me because its not really a penny stock, I guess even though it traded in the pennys for a long time. thanks again have a nice day

[Susie924]

Nice job!

[americano]

The La elections are closing in if it goes of without a hitch the second honey moon could begging I paid 27 for my first shares as well as low as .35 cost average, nicely in the green now and hopfull this low floater can add a few more dollars to the pps , 2.75 mil float 13 OS

[Susie924]

Wow! That sure has been on a tear

[americano]

[Susie924]

I knew that sounded familiar and then I saw who posted it originally and it was norms.

Thanks for posting it here rocky

[rocky822]

Susie, just saw this board from your post on Poster Talk. Found this awhile ago and saved it, thought it fit appropriately here. Long but good.

The Bandwagon Theory:
A Glimpse At How The Market Really Works

(exerpt from Tools & Tactics For The MASTER DAYTRADER
by Oliver Velez and Greg Capra) - some of the best reading you'll ever do!

Imagine a bandwagon that is rolling forward at a quickened pace. Music that is very pleasing to the ear is being played from speakers from each side of this bandwagon, and a few people on the back of the wagon are partying, having the time of their lives.

The music, loud and clear, starts to attract many other onlookers that happen to be idly standing on the sidelines. These onlookers, unable to resist the sweet sounds being played, run to join the party that seems to be going on.

Progressively, more and more onlookers jump on the back of this bandwagon, and those few who were enjoying the first phase of the party begin to leave.

As the crowd of the new party animals on this bandwagon grows larger, the bandwagon finds it harder and harder to move forward at the same pace. It slows, enabling more and more late onlookers, witnessing the great fun, the chance to jump on.

The crowd grows even larger. Larger and larger the crowd grows, until the bandwagon, heavily laden with bodies of drunken party animals, can no longer move forward.

It finally comes to a complete stop.

Now that the bandwagon is at a complete standstill, more people jump on. And why not? At this point, joining the party is easy. Absolutely no work is required, for individuals wanting to join the crowd no longer have to run to jump on board.

But the nature of the bandwagon is to move forward. It's motionless state is unnatural, and therefore cannot last. It tries to move forward but can't.

The crowd piled on back is too large. It must free itself of the heavy burden. And it does.

It quickly shifts itself into reverse, and jolts backwards, knocking a few of the party animals off the back.

The music stops.

Puzzled faces from the crowd begin to emerge. Before anyone figures out what's going on, another backwards jerk takes place, only this one is move violent. Another large group of people get thrown off the back.

Now reality sets in.

The FUN has turned into a NIGHTMARE of EPIC proportions, and panic begins to run rampant. Some decide to jump off to their deaths. Another thrust backwards sends an even larger group of drunken, offbalance people, hurling to the muddy ground.

It doesn't stop.

The jolts backward continue, each successive one more violent than the last. At this point, only a few die-hard dwellers are holding on, their very lives hanging in the balance by a very thin thread.

Failing to be completely free, the bandwagon angrily puts the pedal to the metal, and this final thrust backward is so vicious that it's front wheels lift high off the ground, momentarily suspending the wagon in a perpendicular position.

The last of the hangers-on crash to the ground, broken and maimed to no end.

At this point, a new group of onlookers emerge from the nearby woods. They are clean and serene. Each move they make is deliberate and powerfully energetic, for they did not take part in the tragedy that just transpired. Or did they?

A few of the dejected souls lying on the ground take a closer look, a look that reveals something very interesting.

This seemingly new group is not new at all. It is the same group that was seen quietly exiting the party before it came to it's violent end.

An even closer examination by a few more beaten-down onlookers reveals something even more stunning.

This group not only exited the party early, they were the originators of it!

"My God," someone exclaims. Paralyzed, and unable to move freely, all these dejected souls can do is watch, as the masters of the game go back to work, again

No sooner does this bandwagon's wheels hit the ground, than this professional platoon bolts for the wagon. In a flash they are onboard. Easy

The bandwagon, now free of the larger crowd, can move forward freely and gracefully, comfortably carrying the more astute group with it.

It's pace quickens, and before long a smooth elegant stride is in place. After a few more miles of uninterrupted movement, someone from the masterful group flips on a switch, and suddenly the loud sound of entertaining music starts up again.

Someone yells, "OK everyone. Here they come. Let's do it again."

Within moments, those who were the former victims of the backward crash become interested again. The music almost calling them from the grave.

And once more the never ending cycle repeats.

(the hidden wisdom embedded in these metaphors, will allow you to claim a higher level of understanding and mastery at the game of the market).

Happy trading all and hope you enjoyed this long exerpt!

Norms

A Quitter Never Wins and a Winner NEVER Quits!

http://www.investorshub.com/boards/read_msg.asp?message_id=2595337

[Susie924]

Great article!

Thanks Jim!

[Jim Bishop]

This is an ad, but it's got some good things in it.

"Averaging Down is a Losing Proposition"

Friday January 20, 9:27 am ET
By TradingMarkets Research



http://biz.yahoo.com/tm/060120/13812.html

[MOMO]

thanks Susie

[Dspetry]

I think this is the hardest thing for me...

When its going strong, your mind is saying "SELL - Stick to your plan"...

But the damn GUT says, HOLD on for the BIG HIT...

Its all about discipline I guess...And that, I have very little of <lol>

Thanks for your thoughts.
Dave

One thing I always try to do is sell into strength.

[Susie924]

Great post!

Thank you for sharing it here.

[MOMO]

Susie, Great Board!, a place where traders can post their trading experiences and share with others, Great Idea...

I trade mainly in the OTC/Pink markets, and any trader here knows that this is not like any other market out there. Your not only trading against ruthless mm's but you have to constantly keep both eyes on the market, due to dilution and the many other issues that plague this market. Regardless, it is a market just like any other, where money can be made and lost. I trade for profit, I don't know how much that will be, it all depends on the stock and how it acts. When I place a trade, I already know my exit strategy and have my game plan ready. If the stock goes against my plan, I will cut my losses and I am out, period! One thing I always try to do is sell into strength. I know it sounds easy, but with these stocks you could have a day with no vol, and the next day hundreds of millions of shares trade, and back to a day with no vol, and a nasty spread. I like to sell when I can, not when I have to...

Over the years, I have learned a great deal as a trader, but the most important thing I have learned is the ability to stay objective, and trade without EMOTION! Trading and emotion don't mix, when a trader is acting on emotion they are unable to make clear decisions, and they usually end us loosing money time and time again. Emotion can cause you to chase a stock and hold one that is tanking, in hopes that it will turn around. I am by no means perfect, I've had to refine my trading strategy many times until I found one that is comfortable for me.

When I first started trading, I took many beatings trading on my emotion and lack of knowledge, but those experiences helped me to become a better trader. Trading is just like life, you never stop learning and developing. It is that constant refinement that makes us better people and better traders.

IMO, successful traders are nothing more than traders that learned from their mistakes and continually adjusted their trading strategies until they found one what works for them...

[MOMO]

GOOD MORNIN!

[shakerzzz]

whatzzz up stratzzzzzz

[4Godnwv]

Ah - the ole' SAR doodlie square - lol

[Susie924]

I like it!

[glassy]

I knew you would catch that-LOL! highly technichal term that one.....

[Susie924]

sar doodlie square?

I don't think I ever heard that one!!!

LOL

[Susie924]

Thanks glassy.

I think I bought that the day it IPO'd.
It cost me a lot more back then!

[glassy]

absolutely and IMO there was not good reason for the sell off- emotional move that gained momentum. Here is a good board to learn about otc trading SA is very good as are others..

http://www.investorshub.com/boards/board.asp?board_id=4084

[glassy]

LOUD- thought you would like this chart- Susie. I bought this am at .40 ( knew it was a buy in the .30's but...) anyway, maybe the annotations will help you out here- have a good weekend

[Wonway]

There are a couple of caveats with GZFX, first they are traded on the Berlin exchange. I've lost a lot of money with stocks on that exchange. They run up and then bagholders get burned, some seem never to recover. I think EZTO and FASC were two on that exchange. Both had major problems getting off the exchange. The second caveat is that it fell on a day when almost everything else turned green.

I'm still a rookie trader, so don't take this as advice, just wanted to share my experience.

[Egeliah]

Are you folks watching what's going on with GZFX?

The last time a couple of you were over on that forum, they didn't seem to like you much... at least didn't appreciate your ST view of things.

Looks like it's going to run up again. OTC stocks and trading is foreign to me... I see some opportunity to make some spare change putzing around with it... maybe fund my Roth this year.

Can I get a few pointers on OTC trading strat based on what's going on with GZFX right now? You know a little live action mentoring sans all the pumping next door in GZFX forum?

I've got a couple positions in GZ right now and I'm not sure what I want to do with 'em. Protect my capital first...maximize my profits next (isn't that what we all want?)

I shoulda sold some on the last run, but it came too close to the year end and I had some losses I wanted to claim, those profits woulda hosed that up.

I think I'll take some profits early this year and move them into my Roths (the wife's and mine). I normally lean toward LTBH so like I said, this is pretty new to me.

Comments?

[shakerzzz]

Merry Christmas stratzzz and happy holidayzzz

[Billy9565]

Merry Christmas Everyone!!!

[MOMO]

Merry Christmas All...

[Susie924]

Beware 'Hot' Stock Tips on Your Cell

By TheStreet.com Staff
12/15/2005 2:17 PM EST

Editor's Note: The following is an investor alert from NASD originally posted on Dec. 13. It is being republished here with their permission as a service to TheStreet.com's readers.

You get text messaged on your cell phone. You check it -- and it's not from anyone you know. Instead, it's an unsolicited promotion for a low-priced "hot stock." The short message includes a stock symbol and reads: HOT BUY. 200% Profit Mon. 100% IN 2WKS. You've been cell phone spammed!

NASD is issuing this alert because it is aware of numerous instances in which stocks are promoted through cell phone text messaging. With email filtering systems becoming more effective, spammers are now turning to mobile text messages to get their messages out, resulting in significant increases in spam text messaging. (Wireless Services Corporation, which runs the data networks transporting text messages for several wireless carriers in North America, reported that the number of spam text messages more than doubled in the past year, from 18% of traffic in 2003 to 43% of traffic in 2004.)

Unfortunately, spam blockers for text messaging software may not be as effective as email filters. Even worse, cell phone customers may have to pay for the spam text messages they receive.

Be advised that in many cases the people behind these messages are likely to be paid to promote the stock or own some of the stock themselves. They are hoping that you and other investors will buy the stock, creating demand and causing the share price to go up. While you're holding your stock, the fraudsters sell their shares when the price peaks. Before long the stock price falls, and you lose money.

New Tactic, Old Scam
Cell phone text messaging to hype a stock is a wireless-age version of the old "pump and dump" scheme. While the technology has changed, the scam has not. "Pump and dump" schemes involve somebody recommending a company's stock through false and misleading statements (the pump). Misled investors then buy the stock, creating demand for the stock and often causing its price to soar. Fraudsters then sell their shares off (the dump), usually leaving investors with worthless or near worthless stock.

The first tip-off that you're being scammed is that the message is unsolicited, which raises the obvious question: Why would a total stranger text message you about a really great investment opportunity? The answer is that there is no such opportunity for you.

Brief as they are, spam text messages frequently include:


Price targets or predications of tremendous run up in price: "200% Profit in a month"

A trading symbol and a stock price--often a price well under 50 cents. Such low-priced stocks often are quoted on the Pink Sheets, a centralized quotation network for OTC (Over the Counter, that is, non-exchange listed) stocks. You should know that no listing requirements are necessary for a stock to be quoted on the Pink Sheets. These stocks also are often thinly traded, making it easier for a fraudster to manipulate the price of the stock.

Pressure to invest immediately.
Don't Be Taken In
The best way to avoid being taken in by text message scammers is to ignore the message. A cardinal rule of investing is never rely solely on information you receive through an unsolicited source, be it a text message, email, fax, or phone call.

If you do receive a text message hyping a stock, NASD would like to hear from you. Email the message to NASD, fax the message to [phone] or submit it online through the NASD Regulatory Tips page.

[shakerzzz]

A GOODFELLAS CHRISTMAS;
Twas the night before Christmas,
Da whole house was mella,
Not a creature was stirrin',
Cuz I had a gun unda da pilla.

When up on da roof
I heard somethin' pound,
I sprung to da window,
To scream, "YO! Keep it down!"

When what to my
Wanderin' eyes should appear,
But da Don of all elfs,
And eight friggin' reindeer!

Wit' slicked back black hair,
And a silk red suit,
don Christopher wuz here,
And he brought da loot!

Wit' a slap to dare snouts,
And a yank on dare manes,
He cursed and he shouted,
And he called dem by name.

"Yo Tony, Yo Frankie,
Yo Vinny, Yo Vito,
Ay Joey, Ay Paulie,
Ay Pepe, Ay Guido!"

As I drew out my gun
And hid by da bed,
He flew troo da winda
And slapped me 'side da head.

"What da heck you doin'
Pullin' a gun on da Don?
Now all you're gettin' is coal,
You friggin' moron!"

Den pointin' a fat finga
Right unda my nose,
He twisted his pinky ring,
And up da chimney he rose.

He sprang to his sleigh,
Obscenities screamin',
Away dey all flew,
Before he troo dem a beatin'.

Den I heard him yell out,
What I did least expect,
"Merry Friggin' Christmas to all,
And yous better show some respect!"

[Ruellit]

Agree Susie, those nievities are the people pumpers, hypers, and bashers are looking to influence.

[Susie924]

Ron,

Maybe my wording wasn't clear.....I'm sorry.

What I was trying to say is that people should be careful who they believe.

Of course no one should buy into a stock because of something that they read on a message board but you and I both know that many people do and because of that there are other people who post things that they know will get people to buy so they can sell.

[Ruellit]

I'm sorry Susie, but I don't agree with that statement at all. You should never buy into a stock without first knowing the risks involved, as much a complete history as available and if applicable as much of the fundamentals. My point being that if you are going to rely on someone else's opinion to make your trading or investment decisions, then maybe you shouldn't be playing this game. Since I already know your prowess of trading, I'm totally surprised you even made such a statement.

[Stock]

edit -- oops I just realized this is probably OT for this new board - sorry -

The phone thingy with Ameritrade will tell you what positions you have in your account and the phone voice will read the letters of the ticker to you, not the company name, like some other automated thingys do.

Since you are a TDW holdout <g>, this may be your post-merger future.

[Susie924]

Another strategy.........

If someone posts that they know something good is about to happen with the stock that you are in, but can't say what it is.........it may be a good time to think about selling.

[Susie924]

LOLOL!

I bought something today and when I was out shopping I wanted to call to see how it was doing and I couldn't remember the ticker!

[Jim Bishop]

Make NOTES!

Yesterday I bought some POS on news.

Today I'm up at 6am to scan and put sell in on POS from yesterday.


My cable internet down.


Phone them, talk to guy I sorta know, small towns here, he says we don't know why, go back to bed until 8:30/9. I say but I have stock to sell. He says so use the phone.

I have two problems with that.

1. I hate to phone

2. I can't remember the symbol, never knew company name, what am I gonna do, call TDW and say what did I buy yesterday?

Went back to bed. Made note to self, says make note to self.

Nap time

[Jim Bishop]

Yep, us little guys gotta swim fast....as in NEXT!

[cbfromli]

lol..hey the little colored one is usually me...

[Susie924]

LOL

[XV19]

lololololololol

[Jim Bishop]

[cbfromli]

PREDATOR OR PREY?

Each timeframe in the market has a completely different set of players. Each one has its own predators and its own prey. Do you know your timeframe? The scary part is that if you don't know and stick to your timeframe, you're going to be someone's prey and never know why.

OK, so what are these timeframes? Let's use a pond and fish analogy. The first pond is the 2 minute timeframe. The others are the 5 minute, 15 minute, and daily ponds. Don't worry too much about the physical property of these ponds. For instance, fish in the 2 minute pond can feed on fish in the 15 minute pond. But, the pond analogy is still useful.

The 2 minute pond is the group that takes money in a way that we call slippage. They nasty little devils are fast and furious. It is amazing to watch them. They are really big fish, with tiny little mouths. They spend their day eating teenies. It takes a lot of teenies to satisfy them. So they have to be quick and repetitive. They'll choke on big pieces of meat (large positions for a long time), so they keep their bites small. These fish are comprised of Market Makers, Specialists, abridgers, and scalpers. These guys are trying to take money from all the other fish - including each other.

The 5 minute pond is full of day traders trying to take money from the 15 minute pond. These are the fish looking for intraday trends. Their mouths are built for 1/4, 1/2 or full points. Where the 2 minute fish worry about not getting enough volume, these guys worry having too much. "Who am I going to buy 3,000 shares from and how will I unload 'em." If they try to eat too much at once, their prey might panic and run away.

The 15 minute fish are big ones. These guys work all day long to fill one order. These are the institutional traders or Market Makers acting as traders. They also worry about how much volume they move, but sometimes they just can't hide it. So, they can't buy or sell all at once. They also have to hide their tracks, because the 5 minute fish are trying to spot them and eat from the same plate.

The daily pond is a funny mix. There are two main groups. There are the mutual funds and the Investradors. (I call them this because when a position goes away from them they become Long Term investors, and when they are making money, they are traders. This confusion between Investor and Trader begets the term Investrador.) Investradors are the bottom of the food chain. They supply the money for all the other fishes. Very kind of them really. Fortunately, 80% of them are philanthropic, so there is always a stream of new funds.

The Mutual Fund fish are really big. They move from place to place in the pond, swallowing great masses of Investradors. How can they do this? Can't everyone see them coming? Aren't they the slowest fish in the pond? Yes to all of the above. So the Mutual Funds must use bait. Mutual Funds swim around with their mouths open wide. Around this mouth are numerous goodies to tempt the Investradors. They dangle Research Alerts, Upgrades/Downgrades, Sector Analysis, cover stories on Fortune Magazine, etc.

Let's take a look at this food chain from top to bottom. All the money comes from the Investradors. The mutual funds eat them alive. However, in order for the Mutual Funds to move around they need the help of the Institutional Traders. Kind of like tug boats pushing a freighter around the bay. So once the Mutual Fund fish eats all the Investradors on one path in the daily pond, he calls in the Institutional Trader fish to help change direction. These fish move millions of dollars worth of Investrador flesh. So they tell the Mutual Fund, "OK, I can do it, but you'll have to wait a day or two." Then they take the flesh to the 15 minute ponds and start moving it. This creates eddies in the waters of the 15 minute pond. A good institutional trader with a small amount of Investrador flesh in a big 15 minute pond can't even be seen. However, the larger the order and smaller the pond, the bigger eddies.

Now the astute 5 minute fish is watching the waters of the 15 minute pond. Here he notices something - a trend. The waters of the 15 minute pond can be very murky. However, it is a little easier to spot these moves in the 5 minute pond. That big fish sometimes gets too close or makes a mistake and the Daytrader Fish spots his action. He jumps in front of the Institutional Trader and steals his pound of flesh and moves on. Institutional Fish don't like Daytrader Fish.

During this entire process, the 2 minute fish run around cleaning up all the little leftovers. Finally, all the Investrador flesh is gone. The pond is red with blood, but the fish are feed.

What pond do you play in? There is money to be made in each pond. But only if you know who your prey is and who is your predator.

You can be a 2 minute fish. Are you fast? Are you happy with making teenies? But remember these guys are cannibals.

You can be a 5 minute fish. Are you patient? Do you mind scanning constantly looking for signs of 15 minute fish? But when it is time to act you better be fast and decisive. And you better like 1/2 point mouthfuls.

You can be a daily fish. Can you handle the big swings in price? Can you watch your stock drop 3 points, while waiting for it to gain 9?



One of the most important follow-on lessons here is what timeframes to watch. Basically, you are taking money from the timeframe above you and giving money to the timeframe below you. For example, if you measure your holding period by minutes, then trade off a 5 minute chart. However, you need to monitor the 15 minute and daily charts for opportunities. Likewise, use the 2 minute chart to monitor that pond for hazards. But remember if you are playing in the 5 minute pond then stay there. Don't move from pond to pond.

Now can you decide what pond you are in? Know your prey. Know your predators

[glassy]

I think better said is that is looks like they will dodge the BK bulllet- my bad. not definite yet

Thursday , December 08, 2005 21:16 ET

By RANDALL CHASE
AP Business Writer
DOVER, Del., Dec 08, 2005 (AP Online via COMTEX) -- Calpine Corp. on Thursday withdrew its request for a temporary restraining order after reaching an agreement with bondholders who had threatened to declare the struggling power merchant in default if it did not immediately restore $312 million into an escrow account.

Wilmington Trust Co., acting as trustee for bondholders holding $3 billion in second-lien secured debt, notified Calpine on Monday that it would declare the company in default if the money was not restored to the escrow account by Wednesday.

Calpine immediately filed a motion for a temporary restraining order, arguing that a default declaration could set off chain of defaults on other Calpine debt and cause the company, which is on the brink of bankruptcy, "irreparable harm."

Following negotiations, Calpine, Wilmington Trust and an unofficial steering committee of bondholders informed Chancery Court judge Leo Strine Jr. on Thursday that they would abide by the terms of Strine's ruling giving Calpine until Jan. 22 to restore the money to the escrow account.

In his decision, Strine rejected Calpine's offer to repay $199 million into the account within 90 days, but he also gave the company more time than Wilmington Trust would have preferred to come up with the entire amount.

Strine's decision came in a lawsuit filed by Calpine seeking to force the Bank of New York to release up to $400 million in the escrow account. The account was frozen after bondholders complained that Calpine's use of proceeds from the $1 billion sale of its remaining natural gas supplies this summer to buy natural gas in storage for operating purposes was not allowed under its indenture agreements.

In the agreement reached Thursday, Wilmington Trust and representatives of the steering committee said they would not accelerate payment of the second-lien debt prior to Jan. 22, and would not encourage or support other bondholders attempting to do so.

Calpine agreed that if it fails to restore the $312 million plus interest into the account, the bondholders can declare the outstanding notes to be due and payable immediately.

The parties also agreed to abide by any changes made to Strine's ruling by the Delaware Supreme Court, which has scheduled oral arguments in the case for Dec. 15.

The lawsuit involves Calpine's sale of natural gas assets in an attempt to lighten its heavy debt load. The indenture agreements allowed the company to use sale proceeds either to lower its debt or to purchase other "designated assets," which specifically excluded contracts for the purchase or sale of natural gas, and natural gas supplied under such contracts.

Calpine used $139 million in sale proceeds to buy back some of its top-priority debt at face value, but other bondholders refused to sell at that price. The company then withdrew more than $300 million to buy natural gas in storage, a move that angered some bondholders and prompted the Bank of New York to freeze the escrow account.

Calpine claimed that it had structured the purchases to take title to the gas, but Strine agreed with second-lien bondholders that the company purchased the equivalent of an impermissible futures contract.

The judge said Calpine can use the funds it must replace only to purchase "designated assets" as defined in the second-lien indentures, or to buy back first-priority debt until Jan. 22. Any money remaining in the account after that date must be used to make a tender offer to buy back second-lien debt, which currently is trading at a deep discount, at par.

Following Strine's ruling, Calpine's shares plummeted on the New York Stock Exchange, prompting the exchange to suspend trading before Tuesday's session and to initiate proceedings to delist the company. Calpine shares closed up slightly at about 20 cents in over-the-counter trading Thursday.

---

On the Net:

Calpine: http://www.calpine.com

Copyright 2005 Associated Press, All rights reserved

**********************************************************************

As of Sunday, 12-04-2005 23:59, the latest Comtex SmarTrend(SM) Alert,
an automated pattern recognition system, indicated an UPTREND on
10-26-2005 for BK @ $30.58.

As of Sunday, 12-04-2005 23:59, the latest Comtex SmarTrend(SM) Alert,
an automated pattern recognition system, indicated an UPTREND on
10-24-2005 for WL @ $36.82.

[eom7]

Why is threat of BK gone?

[glassy]

CPNL- Susie- this chart is oversold! and reversed. and threat of BK is gone....bought today

[Rager]

Yes very nice Susie, look forward to adding comments.

[Susie924]

Thank you.

[rlangmaid]

good board Susie