Yes, repetition is indeed the key to learning, esp with these kind of things, where they need to become second nature, as we don't always have alot of time to think about it.
If you click back through those other EOD shots linked to that last PHEI EOD screen, you'll see IYSA and MGLG, also with HDSN on the ask lineup. (http://www.investorshub.com/boards/read_msg.asp?Message_id=18866363). Those stocks are also down significantly from those EOD shots.
Honestly, in the pennies, it is almost impossible to get away from dilution. I think the only way to avoid dilution entirely is to only trade NASD, NYSE and AMEX stocks. When we find a penny that's not diluting, it's a real gem. Those are the ones that hold their PPS for weeks, despite little to no volume. That's a great sign, imho (although still watch the MMs on the ask, as sometimes the diluters are simply waiting for liquidity to turn on the faucets. I'm pretty cautious about buying a stock that hasn't had volume in a while. They can pop big, but sometimes the minute the MMs wake up and spot the unusual activity, they shout "hallelujah" and fire up the presses. Again, as always, the key is being one of the first in)
But, if we learn to recognize the patterns, such as the fact that most penny companies will reliably sell into their own PRs, we can time our entries and exits so that we can still make money off these plays.
But it's precisely because of dilution that we don't hold most of these for more than a few days. As with FCCN, the stock may advance as long as there's breakout volume, but the minute the volume dies down, VFIN, HDSN or RBCM will make their presence felt in the PPS :(
Fwiw, when I feel uneasy with a play, but I'm still tempted by a run, I sometimes do a 'test buy/test sell' of less than $200.
I try to bidwack with a small number of shares. If the bid can't support my test sell, then it will turn into a massacre when the other traders try to get out.
This takes a little time, and costs a little money, but when compared with the kind of losses you can take on bigger sums, it's worth it, imho.
I did this recently, when RMDN had popped 60% on news, and got my answer in seconds:
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