lowtrade

[lowtrade]

This is the old problem with low float/low volume stock trading. One jumps in on high volume price increase days. Close to the old average volume in size. Then when the emotion cools, volume falls to average and you can't sell what you bought. No liquidity

Me

The difference is experience and DD.

You

No need to argue different trading styles, as an individual trader, with a style of their own, always has more successes then failures using that style or they wouldn't use it.

I teach low risk, high probability. Your posting about higher risk, lower probability. Sure being very wrong when a stock defies the norm, happens. But for every DEWM there are 10 which aren't darkside pump & dumps. And that's the only thing that causes a low float/low volume stock to hit big as volume comes from the dark master selling to the retail herd.

The average volume isn't revisited, because some big guy which just receive large amounts of new shares for funding, is selling it into his manipulated run. Yes it happens and when it does, it can be very profitable.

If your good at speculation, keep doing it. My post was about safety, not gambling or being at the right place when lightning strikes. I've never been good at that.

I don't want to even get into DDing a OTC stock. One of my pet peeves about using big board "terminology errors"; on the OTC. As the meaning of due diligence doesn't even fit at the OTC. Because OTC companies don't have fundamentals to evaluate, only news stories. And rarely more then 2 employees, the owner and his wife. So IMO DD, as most call it, in pennyland, means squat on the OTC. There isn't even a rev's pipeline usually. Producing income on their balance sheet.

And the meaning of due diligence is the evaluation of financials, fundamentals, rev pipeline and intangible ownership, to determine company value. Not stock value. There is no way to determine stock value as retail places that value on anything that is purchased.

To rap up this reply I have to say your correct. My statement can be correct or very wrong.

Guess I did get into DD on the OTC vs DD on the national exchanges.