$heff's $tation of $tocks & $olid DD

[TraderRich]

Kyinvestor,

I don't know how experienced you are with trading pinks so I don't know how basic you want to get, but there are a couple general rules you might want to follow to help you out.

I don't know where your entry point or cost avg is with QMNM, but if you've done your DD and like the prospects for future growth, but still want to lower the potential risk of things not working out in any of the plethora of ways pinks/otcbbs can go bad, then I would always recommend at least taking your original investment out at the best price you can. If you've got 50% profit on your shares now then you can sell half of them and hold the other half as basically "free" shares. Generally with pinkies it is best to at least do that much and maybe even get a little profit so that you can move on and not worry so much about what the rest does. Whatever you get out of it will be pure profit.

From a technical perspective there are a couple simple things to keep in mind to help you recognize strength in a stock. The first is that more often than not a stock will run for three days and then the selling tends to outweigh the buyers. Obviously this is not always the case but it happens fairly frequently.

The next very simple thing to help is, whenever you have an exceptionally long candle on a chart, add the high and the low price and divide them by half. The number you get should be a good support level for a stock that has a lot of momentum.

If you put those two things together...where you're on the third day of a run and the stock pulls back to the half way point of the candle, you might want to consider taking at least some profits on a break below that level.

Very generally speaking, you should never feel bad about taking a profit, even if the stock ends up running higher, because you never know what is going to happen.

Hope this helps.

Rich