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Re: moneym8ker post# 52300

Friday, 04/29/2016 9:14:02 AM

Friday, April 29, 2016 9:14:02 AM

Post# of 235076
Excellent post. One of the most difficult things, making the transition from big board stocks to pinkville is the reality of the dilution making the direction of least resistance, down. It is human nature for those of big board mentality to hold long term, which has been a successful strategy for Warren Buffet, et. al. but is a loser's strategy in pinkville, which makes using TA a challenge here. The main goal of TA is to find an uptrend and follow it up until it breaks down. Here in pinkville the trend 99% of the time is down (due to dilution as you pointed out) so we are constantly looking for the hic cup, knee jerk, up move in the continuing down trend. When I was a broker at UBS we were not even allowed to buy pink sheet stocks for clients and if we did get special dispensation from the higher ups we had to get non-solicitation letters. It was a PIA.
My first pink purchase was in 2008 and I have yet to find a stock that is higher now than it was than. I am sure they exist and I am sure (or I hope) that someone can point out the example of a company that started in pink, survived pink and moved on to uplist, which is every CEO's (spoken) wish. Every IHUB board I go to, they all say the same thing, without exception, "this one is different". The ONLY way to survive in pinkville is to be: smart enough, lucky enough or both, to get in before a pop and then take your cost out and ride free shares...than move on to the next one but please don't take your mortgage money and put it in any pink sheet stock hoping to move to Belize and sit in the sun. It makes the devil smile. (When I say "you" I don't mean it literally but figuratively).