Ryanmnly can correct me if I am wrong, but the entire point of the FLD's is to remove liquidity from the stock and force the MM's to cover their naked shorts, thus causing the squeeze. If the entire float is locked up with the stubborn and stable "longs", then there is no real liquidity.
If you sell out of your position, that creates real liquidity as opposed to the fake liquidity that the MM's create by selling to each other and naked shorting the stock. Everytime you sell out of your position, it increases the strength of the MM's and delays any real squeeze that might occur.
The challenge is maintaining patience through the squeeze process and not jump out of the stock at the first signs of profit. It may seen tantalizing to capture 30% profit, even in the hopes to jump back in on its correction. However, that defeats the purpose and is counter productive to the "team" mentality that Monk is trying to create. The more people jump in and out of the FLD's or the greater the shares they own as they make these selfish trades, the worse and delayed the real future profits (ie 400-700%) become. If everyone can be cohesive in their patience and strategy, it works to the betterment of the group as a whole and ultimately screws the MM's, who are more accustomed to doing the screwing.
My point is...I hope people aren't jumping out of EIGH or CDIV right now to put money in the other FLD's.
The strategy is not to sell out of positions until it actually squeezes. Only new $$ should go to new positions.
AI
