Masko - thanks for the great questions! Let me start by saying that you are dead on in your assumption that our program will indeed "need some tweaking as it goes along."
To answer your questions...
1)If a stock the board enters begins to decline during the week, will there be an exit point and if so, will it be an agreed upon % loss? Also, if there will be an exit point, will the teams exit be strategically executed as to not adversely affect longs in the particular stock?
Prior to each pick being announced, the MDM team will first comprise an initial "stocks to watch" list, perform basic DD on that list and then select a "Top 10" list. That "Top 10" list will be scrutinized and DD'd by all, before we vote on our play... That being said, I believe we will have a very solid chance of finding a stock with good volume and a good chance of hitting our 15% target in the week that we play it. As far as us picking a stock that begins to decline, I know I personally will be monitoring the charts and L2's on any stocks that we select, and I'm sure that you, and others will be doing the same. In the beginning, I guess I see this to be looked at by a case-by-case basis, although we can always implement a stop-loss at 10% or whatever number the team decides, if that's something we (as a group) feel we need to do. As for our exit adversely affecting the longs, as our size of investment increases, the stock picks will need to be adjusted accordingly as we do not want to create an artificial spike upon entering, or drop when exiting our plays.
2) Is there someone on board who is experienced in charting? Someone with verifiable charting experience.
I will leave this question open for other "members" to answer individually. I know that I feel pretty comfortable in chart reading, have seen your explination based on charts as very solid, and believe that AOuvier is also pretty good. With already 38 boardmarks and others following, it is my belief that chart reading should be well-represented.
3) I notice you have 5k max buys once the team reaches that level. are those multiple buys of the same agreed upon stock for that week or are there going to be multiple plays that week?
The idea at the levels that you are asking about, are kind of answered in my response to #1. They are slated to be multiple plays as we do not want all of our eggs in one basket, nor do we want to create artificial spikes or drops upon entering and exiting a play.
Note: Once the group aquires large sums of capital, they will be influencing stock prices in a major way. What is the strategy in plays at that point. lets say the group has 20 solid players @ 50k a piece. that is an instant influx of 1M in capital excuted by this group. that amount will have an instant effect on pps in pennyland, in fact 20 people with 10K a piece will be significant in pennyland. so i guess my question is: when the group gets their capital above 25K in each individuals online broker account, will the strategy of the group change from a play a week, to a play a day or possibly 2 days. with the groups influx of money, I'm sure it will inflate the price of a penny stock as soon as they enter.
In terms of large sums of capital and a large number of us playing these stocks influencing stock prices, that too was something that we saw as happening. As stated above, as our capital increases through this program, I think we will all agree that we will need to move away from only playing penny stocks. In your example, with 20 players at $50k each (equalling $1 million), we would essentially be buying many of the penny stock companies with market caps lower than $1 million. So that being said, as our capital increases, we will eventually need to start playing the big-board stocks, and will most certainly need to make selections with a dramatically higher PPS, market-cap, and volume.
Again, THANK YOU for posting these questions, as it gives all of us something to think about. The program was originally something that AOuvier and I did alone, but we both agreed that the team aspect would work better for all of us...
That being said, you're dead on my friend, MDM will need tweaking each step of the way, and posts like this will only make that tweaking easier and more successful for all of us and MDM!
Have a great trip... Will see you on Monday!
Chris
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