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trader53

Re: trader53 post# 1818

Saturday, 07/21/2012 10:52:07 AM

Saturday, July 21, 2012 10:52:07 AM

"Flat-Liner" / "Pond-Fishing" Plays Updated >

> You will have a 50/50 chance at making $Money, in both of these plays.

> Many of these stocks will produce 10-fold moves up, or higher.

> These stocks are listed below >

INTRODUCTION:

The "Flat-Liner" stock

> The RSI and the Price both go flat.

> Your stock looks like it's sleeping, or dead !

This chart pattern may be caused by either:

> a "manipulated walk down"
by Market Makers, and/or Insiders,

> dilution of Outstanding shares,
> the company is filing for Bankruptcy,
> the company will soon effect a "Reverse Stock Split"
> the company will soon be delisted.

> Despondency and Depression describe this situation,
as shareholders watch their account value drop to nearly zero !

> This is "the lowest level" that a stock can get to,
in an accumulation phase.

> The stock will have a Bid 0.00 - Ask 0.0001 in most cases.

> The "negative news" and aggressive sellers,
have now over powered any "positive news" and buyers.

> Most everyone hates this stock.
Shareholders who are still holding shares, are referred to as "Bagholders".

> Just as the patient without a pulse,
when everyone thinks the patient is dead,
shareholders start to believe their shares are dead,
and will never move again.

> Some of these stocks will stay flat for a few weeks,
while others will stay flat for months, and months.

How does a stock get to 0.0001 ?

So you may be asking yourself,
"How the heck does a stock go this low?"

Well, the answer to that depends on the stock,
but generally it is due to dilution,
and the subsequent supply of shares
outpacing the demand for them.

If nobody is willing to buy the stock,
and the selling continues,
the stock goes down down down,
all the way to 0.0001… and then,
when nobody is willing to buy, not even at 0.0001,
the bid disappears.

These are "no-bid" stocks,
and typically their asking price, or offer,
then becomes 0.0001.

So you might be thinking,
"What's so hazardous about a .0001 stock?

It can't go any lower."

Well.. that's not really true.
First of all, if the stock has no bid
and you buy at the ask of .0001,
you've immediately assumed a 100% loss.

Why? Because, with no bid,
you couldn't even sell the stock readily
if you wanted to.

Remember, you can't sell it for less than 0.0001.
So, to simply get out of your position even,
you'd have to put your sell in at 0.0001,
and hope your shares are bought up by someone else.

“Boxed in the Cellar” >

MUST READ:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=77732024

EXAMPLE:

_____________________________________________________________

The "Pond-Fishing" Play

> aka "The Patience Play" ,
...because you have to tie your money-up for 3-to-6 months,
accumulating it slowly, while you wait for the time the stock receives the promotion, and the "Run" from the promotion, begins to lift the price, out of the multi-month trading range.

> Called a "pond" , because it starts from a "dead still pond surface" in price.
This means that there is a long period of time with no price movement at all.

> There are "3-volume surges" during this time to signal random accumulation at these low prices.
That one action, of "3-volume surges" without price change, is an OTC "tell" or, "signal" , that funding may be taking place.

EXAMPLE:

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