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Replies to #29622 on lowtrade
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lowtrade

03/18/12 5:50 PM

#29626 RE: Silversurfer1 #29622

Ok how do I start.

First, You can't correct a mistake by another mistake. Learn to sell mistakes quick ! But if you don't sell after a mistake, averaging down should only be acted on in a rising price move. Don't try to predict, don't try to catch that falling knife! Don't buy more on the way down.

Want to stop making mistakes, don't buy retraces or bottoms before reversal. It's that simple. Also more important, don't listen to message board opinions. Mine included. Charts & TA show what retail is thinking. And retail is way negative in SPAH's chart.

Now for the dilution subject. I bite my lip every time I read an uneducated post saying dilution is taking place on any retrace continuation. Big guys don't sell lower. They are not that dumb. They sell higher. They don't delude a stock by selling lower on the open market !!! The dilution takes place on funding or debit conversion, at the offering level, not the open market. This is done with large amounts of shares being shifted from the company treasury to (so called) investors. VC's

Dilution does NOT take place on the open market! What happens on the open market is, retail panic as the big guys buy (accumulate) lower, before selling the dilution they got from the company, for funding or debit conversion, higher in a bought or PR'd run. Volumes seen in price dives are the herd selling, not the company or VCs dumping for a loss. It just doesn't happen. Big guys aren't big because they are dumb. They stack the bid and wash trade the price lower to accumulate from the retail herd.

Learn to sell mistakes quick!