Is that stock really moving or its it just a setup?

I want to address something that sometimes newer or inexperienced traders miss. Just because a stock price is fluctuating doesnt mean it is moving. It is very important that you pay attention to the amount of stock being bought or sold. A purchase of 50 shares moves the price just the same as a purchase of 5000 shares.
When a stock moves up or down on very small purchases or sells, it is mostly likely a person or promotion trying to "paint" the chart to fill in gaps and make it look solid.

Most of your trading platforms have detailed quotes that will include buy and sell amounts even if they are 15 or 20 minute delays. You can also pay attention to the bid and ask share amounts in your trading platforms to see whats on deck.

Remember the predator promoters think we are stupid and wont notice a buy or sell of a stock at a meager 5 or 10 dollars and we will look at only the price change. As always dig deeper and dont give in to the hype they will create.

Pathetic Promotion this week on LDPP

The pathetic forum post's I am seeing on LDPP is people patting themselves on the back. Feeding off each other because they knowingly took advantage of the Newbies, sounding like Tarzan and beating their chests.  This makes me sick.  Even if they didn't have anything to do with the play, they jump on the band wagon and say they did because they are thinking about their next play and how much they can make off who they think are Stupid people the next time. Claiming gains to prove they are the next big play is a huge joke.

The last post I read was Friday:

A bang?  A bullet does the most damage when they hit the target they are aiming for.  The faster something loses momentum, the more force it produces.  Get where I am going with this?  The damage was done when the primer was added to the bullet at the onset, hence front loading the stock.

I read a post that said this:

Obviously someone leaked the play for their own personal gain...

When so many promoters, which I found 12 so far, jump on a play, it does not work out so well.  Each and every one of them are in it for personal gains.

Take a look at the data where LDPP went from not trading and the front loading started:

These are things you need to discipline yourself into looking at before you invest.  This information was found reading forum boards and going to http://www.otcmarkets.com.  You spent hours earning you hard earned money.  Take the time to invest it well. 

The chart below is with a 50 moving day average.  Remember I said a couple weeks back that if the stock falls below the 50 M/A she's gone?  You can see by reading the times and sales that some gained but a lot are bag holders.  They didn't take the time to do their own due diligence and got caught up in the hype of the next best thing.  Keep EMOTIONS out of stock trading, period!

This is the 2 day chart of the play.  "Gapped and Trapped" at the get go and went flat.  A picture states a thousand words.

flat and closed -54%

Saw a big post this morning on the next best biggest most awesome trader tool ever.... Big surprise that it was from one of the worst predator pump and dump promoters and all that the site is designed for is to harvest your email so that they can sell you on a list to either another pump and dump promotion or to one of their sister sites that they like to hide in hoping you do not realize that the leopard has tried to change his spots again to trick you into trusting him. I have been on the site they are pushing and it is merely a collaboration of all the tools you already have available to you if you dig a little. Remember hard work yields fruit and you always get what you put into something. The promoters first sentence in his post touting his new site says, After all the HYPE here it is..... See??? They feed on hype. If you are not getting the big picture on promoters... stay tune, I will be watching, learning and posting.  Play it smart and until Monday do your due diligence, Happy New Year and see ya next year.

Who chased and got trapped in this P&D?

Here is a chart for a typical "pump & dump" "gap and trap" that was posted all over forums 12/29/11. 

It closed the day before at 0.0026, gapped to .04 (+1438%) and dropped in the first hour.  Yes she may have closed up 361% but who chased and who got trapped?  There was no news and has not had any since April, 2011. 

Her website is lacking in information big time and this is listed in her quarterly report

"No Active Market. Although the Company’s shares are listed on the Pink Sheets listing service, the Company believes that the public trading price may be an inaccurate representation of the value of the Company because there is little or no trading volume in the Company’s shares and no analysts or NASD market makers actively follow the Company."

http://www.londonpacificgroup.com/

Does that put up a red flag?  Yes she has assets and revs but why has this not been actively trading?

Here is another red flag for me:  company profile reads; London Pacific & Partners, Inc. is an international private equity and corporate finance investor and advisor focused on the transformation of undervalued and growth companies in the healthcare, hospitality, and financial services sectors.

I stay away from companies that have words like "focused" and companies that target undervalued companies.  Makes me think they are looking for shell's to hide things in.  

I also Google'd the CEO:  His experience is all over the place and does not even state LDPP as his primary business.

Kenneth I. Denos
Director and Secretary

EQS
Equus Total Return, Inc.
Houston , TX
Sector: FINANCIAL / Diversified Investments
Officer since January 2005

43 Years Old
Kenneth I. Denos, Deputy Executive Chairman of London Pacific & Partners, Inc. since August 2009. President of the Fund from December 2007 to June 2009; CEO of the Fund from August 2007 to June 2009; Executive Vice President and Secretary of the Fund from June 2005 until August 2007; Executive Vice President of Equus Capital Administration Company, Inc. from June 2005 to May 2008; CEO and President of Equus Capital Administration Company, Inc. from May 2008 to June 2009; Executive Vice President of Moore Clayton Capital Advisors, Inc from June 2005 to May 2008; CEO and President of Moore Clayton Capital Advisors, Inc from May 2008 to June 2009; Mr. Denos has served as CEO of MCC Global NV since May 2006 and as a director and Executive Vice President of Moore, Clayton & Co., Inc. since January 2001. From November 2005 until May 2006, Mr. Denos served as the Non-Executive Chairman of Ridgecrest Healthcare Group, Inc. From February 2005 to February 2006, he served as a director and General Counsel of MCC Energy plc (now Tersus Energy plc). From April 1999 until August 2007, he has also served as Chairman and CEO of SportsNuts, Inc. (sports marketing company). Since March 2007, Mr. Denos has served as a non-executive director of Secure Netwerks, Inc., an information technology hardware and software reseller. Since January 2000, he has served as President of Kenneth I. Denos, P.C. Since March 2009 he has served as CEO and Chairman of Acadia Group, Inc.
http://people.forbes.com/profile/kenneth-i-denos/70767

Chief Operating Officer, General Counsel, and Director
MCC Global NV
Executive Vice President, General Counsel, Secretary, and Director
Moore, Clayton & Co., Investment Arm
Former General Counsel
Tersus Energy PLC
Deputy Executive Chairman
London Pacific & Partners, Inc.
Director
HealthSPAC, LLC
1999-2007
Former Chief Executive Officer, Principal Financial Officer, Principal Accounting Officer, General Counsel, Secretary and Director
FuelStream, Inc.
2001-N/A
Former Secretary and Director
Synerteck Inc.
2004-2005
General Counsel
Healthcare Enterprise Group
2004-Present
Director
Secure Netwerks, Inc.
2008-Present
Secretary, Director, Director of MCCA and Director of Moore Clayton & Co Inc
Equus Total Return, Inc.
2011-Present
Director
Scorpex, Inc.

http://investing.businessweek.com

I personally want a CEO concentrating on the company I am investing in.

Too many red flags from the get go, too many red flags for me to put my hard earned money here.  I will be watching her today and see where she goes.  My money goes on the big flush! Ill let you know tomorrow if this turd floated or if it just went down the drain with the other turds

1 way to tell if someone is front loading a particular stock

One way to tell if someone is front loading a particular stock is:

If someone is loading up on stock shares before news, a pump, a filing, etc...you'll see that volume on the chart. Now here is one of the ways of finding it.....

Volume trends. What does this mean? It means volume moves in up trends and down trends. If you look at the volume before the pump, there is hardly any at all.  In front loading it sort of looks like a stair case, where the volume increases/decreases slowly every day.

Here's an example; I googled AAPT compensation and found an alert the end of January. See where the volume started increasing before???

 

Now in this case, if you had gotten in before the breakout then that's great. But you need to know when to get out also.  Remember I watch the 50 day moving average.  By this chart you can see once the share price dropped below the 50 M/A the downtrend started.  

If you look at April someone tried to run it again for a second leg and gave a little of a gain, but again look at where the 50 M/A is.  Cuts right through and didn’t want to run anymore.  Hopefully you are out back on the first leg before the downtrend started and not a bag holder.  Learn to watch the moving averages and volume

Volume is probably the most important indicator with penny stocks. That's what all pumps are about, it's all about the volume. And most penny stocks are pumped at some point in time and very volitile.  So watching the volume is very, very important.

Stay tuned, do your due diligence and have a green day.

Why you get Pumped & Dumped in a Stock

First of all I will start with the definition from Wikipedia:

"Pump and dump" is a form of microcap stock fraud that involves artificially inflating the price of an owned stock through false and misleading positive statements, in order to sell the cheaply purchased stock at a higher price. Once the operators of the scheme "dump" their overvalued shares, the price falls and investors lose their money. Stocks that are the subject of pump-and-dump schemes are sometimes called "chop stocks".

While fraudsters in the past relied on cold calls, the Internet now offers a cheaper and easier way of reaching large numbers of potential investors.

Read more... http://en.wikipedia.org/wiki/Pump_and_dump

This is how the morning may go... You wake up in the morning and start going through emails, checking forum boards and watching stock chat rooms.  You see the hype that a stock campaign has put out there all over the internet.  You think, hmmm, that sounds good.  People forget, the reason a stock is being promoted is because ALWAYS somebody has shares to sell.  Lesson 1 - NEVER forget someone wants to make money off you.  Lesson 2 - Don't forget to do your due diligence. 

I have seen it time and time again.  People forget Lesson 1 and 2.  Then they forget to find their exit... ALWAYS look for the door out before you enter a stock.  If you want 20%, look to see if their is potential.  Then I see people chase a stock PPS at the open.  HUGE mistake!!!  This could trap you in a stock price too high that can spiral down when they start diluting.  This is what the stock world calls holding the bag or Bag holders.  I know, because in the beginning, I did it too.  A very expensive lesson to learn. Don't hold, set your stop loss and move on.

Most times the stock price was artificially inflated by front loading the stock to paint a pretty chart.

Interesting enough is that the person who was selling the stock in the first place came back around and may have bought the stock at the lower price.

So buyer beware.  I will continue this subject at another time.  Hope you are all having a great week.

Scanning stocks on the fly....

Sorry for the absence yesterday had an extreme bout with neck and shoulder pain and my left arm was pretty much useless. So.... scanning stocks on the fly. Now, I only do this usually for entertainment so its not something I suggest on a regular basis nor with lots of investment money. Lets say I get a tweet or an alert on a hot stock. The first thing I do is go to http://www.otcmarkets.com and plug in the symbol. I like that site because its kinda like my one stop shop resource center with the most info I need to make a pretty good informed decision on if and when I get in. I plug in the symbol and immediately go to a chart of the last 7 days and look at the volume. If there has been a spike in volume the last few days I get a detailed quote on the buys and sells. If the buys far outweigh the sells and there has been no promotion in the few days prior to the alert or tip, then I know this stock has been front loaded and I am a potential bag holder and Ill stay out of it. If its been normal trading then at this point it is a go so far.... Next I quickly pull up the financials and see if there are actual revenues and see if the company is current on its SEC filings. I also check for the outstanding shares and see if the company has recently put a bunch more shares on the market diluting the stock. If it has, I stay out. Next I look at the news releases to see if it has had recent news developments that can affect the stock. At this point if im still interested I go back to the chart and look for my entry point. I do not suggest this trading stocks on the fly to new traders. It takes a bunch of mistakes and some losses to get pretty good at this. If you insist on trying your hand at it,I recommend trading only with paper. I also do not recommend staying in this stock for very long. Worst case scenario you get in on a dip in the afternoon and sell at the next days open, but the preferred exit is the same day I buy. Well thats it for now. Hope you have a great weekend. Im going to go back to some small business ideas this weekend so stay tuned.......

Stock Charts: One tool of many

Reading stock charts is an art in of itself . Im attaching a bad chart and a good chart so you can see the difference. I generally go out 9 months on a chart so I can get a proper reading on volume consistency and spikes usually caused by news or promotion. I also look at whether the stock has been over bought or oversold at those times. I pick 3 similar lows to get my bottom and pick 3  similar highs to get my approximate top. I also look at the top and bottom bollinger bands to see if an up trend or down trend is possible. A trend up on the top band generally indicates an upturn while a push downward on both tends to indicate a downward trend. Flat top and bottom bands indicate a squeeze and generally the stock will trade flat without any type of push or news. Ive seen so many charts that now I really can look at a chart with little analysis without really putting alot of thought into it. This has come from alot of practice and exposure to many charts. Hardcore technical analysts tend to agree and disagree with one another as opinions are like butts everybody has one. You have to find your niche and stick to it. Reading stock charts is only 1 tool of many that I use in analyzing a stock and nothing is written in stone. One constant I believe in is the 50 day moving average. I have found that If i can get in on a low and play the stock to around that average I make more money than if I dont use that average. Unless of course you are playing bio-pharmaceutical stocks. Those things tend to have a mind of their own and are driven so much on speculation of  results of testing and in my opinion you have to be nuts and pretty darned lucky to catch one of those. The more due diligence you do on those stocks the better reading you can get and then make your decisions based on that. Tomorrow Ill wrap up the work week with a quick check I do on a stock on the fly in the heat of a trading day.

Bad chart

Good chart