Investor boards posts and posting

Good Morning all, It looks like the market is taking a beating today so I thought I would dedicate this post to one of our due diligence tools which is posting and posts on the various investor boards.

Somethings I want to explain to you about posts and posting are some of the various motives behind posting on the investor boards. Obviously one of the main reasons we post is to bring awareness to a particular stock. That is pretty much a given. I believe a good post creates awareness and includes information that can help you make your decision on whether to buy or sell the particular stock. For instance if I include a recent chart of a particular ticker in a post and also point out to you the highlights of that chart then that in my opinion is a good post that you can use in doing further due diligence on that ticker. My motive behind that post would be to give you some information that I myself would use in making a decision if I were going to trade that stock. A poster whos motive is to just pump a stock and create hype would of course think you are stupid and post something like "This stock is ready to move imo(in my opinion) 52 thousand times and clog up the board with this nonsense.

Predator promoters who just want to pump and dump a stock on a particular day will flood the posting boards with hundreds and hundreds of nonsensical posts just trying to get numbers for a day in order to make themselves look good.  I am and have always been of the belief that quality always trumps quantity.
I do not ever post the same hype ridden post over and over again just trying to get my post numbers up. I believe you are intelligent and will recognize an intelligent informative post and do not need to be hounded with posts in order to make your decision on whether to invest or not.

Another motive behind posting is posters generally get hired to do just that. Post and post and more posting in order to just plain and simple get paid. On average posters get paid $1 per post with a minimum of 50 to 100 posts per day per promotion. I am not knocking getting paid to post as I get hired all of the time to post. What I am knocking is the blatant disregard for your intelligence when posts are being posted. For this reason my posts are always laced with content you can use and is designed to make you a more informed investor.  So read all of those posts and find the posters who think along these lines and use that info to better make your decisions while doing as always your OWN due diligence in your investment decisions.   Until tomorrow..... Ride Hard or Stay Home

If a stock quacks like a duck, sounds like a turd, then maybe it is one.

Ever wonder why some try to be so convincing it's the BEST STOCK EVER and it's going to the moon kind of thing?  Stop and think about why they are trying so hard to get you to invest in the next best thing since a flushing toilet...

Just a hunch or intuition, but more times than not, they are holding shares and want to dump them.  DUMP them on YOU.  Use your common sense, use your gut feeling and I can't say it enough, do your OWN due diligence.

If a stock quacks like a duck, sounds like a turd, then maybe it is one.

Here's  food for thought:

In its three fiscal years ending in 2010, the SEC brought some 360 enforcement actions to revoke the registration of common stock of numerous companies. This was nearly 18 percent of the total 1,206 enforcement actions brought by the SEC in that period.

The SEC is coming down hard on these stocks and there is a reason for it.  They have your best interest at heart and want to shut these scam's down. Rules and Regulations are set up for a reason.  Remember  a little thing called The Wall Street Crash of 1929?  Our economy is already in disarray and all of the signals are there for an ugly depression.  I could get into a debate over this, but I will save that conversation for another time.  Do what ever it takes to protect your hard earned money and until tomorrow, make it green!

"I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years."
Warren Buffett

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