There ya go. Now you're starting to get the idea.
If you are going to trade in Pinks, the keyword is trade, not invest, you have to forget everything about the fundamentals you've learned on exchange traded stocks. Reading your daily posts in here about how you have 30 years experience in the marketing and manufacturing of a fortune 500 company, and then comparing that knowledge to where ASFX price should be, what their management team should be doing, or how they should be bankrupt by now, is moot. We're trading oranges, while you're telling us how we should be trading apples.
These things are like futures. You have to follow the charts. Look for accumulation periods, take an entry position with a stop loss position should it suddenly tank. Don't get greedy. You can easily get a 30% return on Pinks, over and over.
ASFX is a good money maker for me. I've made some nice chunks on it because it has a history of popping. I made big bucks before last year's March run up. Then I took out a position again late last summer when it looked like it was in an accumulation period agaom, but got stopped out in November for a small loss. I again took a position in February...and again got stopped out for a small loss when the R/S was leaked on that Friday. When it hit another accumulation period last month at around the .20 level, I took another position. Now, I'm up almost 100%, and I've already offset my two small previous losses. I now will use a trailing stop, raising it should this stock repeat the action of the fall of 2009 or spring of 2010.
THIS is how you make money on these things...NOT buying/holding and applying fundamental analysis on them. Most of these pinks are worthless, shell companies. Their preferred stock debt financing puts most of the shareholders money into the hands of management and their crony friends. They rarely file bankruptcy, but instead invoke vicious cycles of R/S's, with each one basically wiping out the shareholders. However, they DO have a tendency to move in larger percentages, and it's when that happens, you can snag a quick 30% profit. Lock that in with a stop. Wash, rinse, repeat.
It takes time to learn and get a feeling for trading these crapola stocks. Most never do. They are attracted to the dreams of turning their capital into a fortune with one "to the moon" blowout, so they will usually buy and hold, riding the stock down, sometimes to the inevitable R/S waiting for that rare 10,000% return. If you are firmly rooted in the behavior and fundamentals of exchange traded stocks, you will lose your keister on the Pinks.
GLTA
