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.

6 Minutes of fame and then.... Flameout

Anyone get caught in the Gap and Trap that Stockgoodies/Sizzling Stock Picks ran yesterday? LYJN is the ticker and wow what a dog. Its a stop sign pk stock that is NOT current in its SEC filings and contrary to the goodies crews epiphany last week that they would not announce picks early to prevent gap ups, it was announced the weekend before and DID gap up. This is yet another play by a predator promoter trying to suck you in and make money off of you buying into their hype and stock manipulation.

At 9:27am there was a form T that came through pre-market.  If you are not familiar with pennies, they do not normally trade pre-market unless there is a form T.  To understand how a form T works;  it is a buy or sell trade after the market closes end of day (EOD) and the market makers push it through.  Clearly by the following image of the start of the day trading, someone tried to manipulate the stock price EOD on the 13th with $53 bucks.  Can we say OOPs?  Shame shame shame, you didn't push the buy button soon enough dumb ass to paint the chart.

Then also look at the selling going on at the bell.  It gapped up 114% at the open with 200k in sells.  Obviously someone did not wait to sell into the promotion.  Another OOPS!  Then the pain continued.  The buy sell ratio continued a pattern all day long... SELL being the operative word.  6 minutes into the play she had 4MIL in volume but was only up 40% at this time.  Dove 75%!  At 9:40 someone purchased 400k in shares at .01.  Someone obviously thought it was going to go back up and got caught in this gap and trap.  Sad...

The RSI dropped below the 50% mark and never regained her buying power.  At 9:43 this stock went flat and did nothing.
Even though it did 36MIL in volume yesterday, the buy sell ratio was selling.

Ok EOD, remember a few weeks ago I said the shorts will step in?  Look at the form T of 10MIL at a lower stock price.

The stock campaign officially died at 10:53.  Watch the 50 day moving average int he next couple days.  I can  almost guarantee it will drop below the 50 day M/A.

If you had done your due diligence you would have seen on OTC Markets that the company has a big warning sign on it and they have not filed quarterly reports since June of 2011.

Tomorrow we will look at the latest Goodie flameout and how they try to suck you back in when they fail to push a stock.  Peace Im Outta HERE!!



I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Active Trading

Becoming a savvy trader is a constant learning process. So many things affect the markets in very drastic ways. Humans are fearful animals and it doesnt take much to spook us especially when it comes to money. Learning to set aside your emotions so that you can think clearly when trading stocks is very essential to success as an active trader. The consistently most volatile time of the trading day is the first hour of trading, Stocks tend to what we call gap up prior to the open and with the flurry of everybody trying to get in, it is the most emotional time. I like to wait till a stock has settled down AFTER the first hour. Lets say for instance the prior day a stock closed at $1.00. During the overnight the company may have released news or earnings reports that spur traders to place orders prior to the open. Early premarket traders also place orders which can be higher than the stock closed at the end of the prior day. when the market opens lets say the stock opens at $1.25 per share. Thats a huge 25% gap up that once the market opens will cause a strong demand for the stock causing it to go up even higher until,those guys who bought in early or placed early orders at say $1.00 decide to take profits or sell entirely causing the price to come down sometimes even lower than the stock closed the day before. This is what we call filling the gap. Alot of times all of this activity happens quickly in say 10 or 15 minutes and lasts about that first hour. Alot of money is lost getting in too early. I wait until i see the gap down and catch the price on the way back up. Sometimes it is very difficult to wait but ill tell you its much more satisfying when on occasion the stock doesnt come back up and I still have all of my money. I also like to be out of a stock before the last hour of the day, unless Im holding my position long term. The same flurry that happens at the open alot of times also happens at the close as traders look to get out or those who missed the boat earlier try to get in so as to have a position for the next day. I rarely hold a stock longer than 2 to 3 days as i like to stay aggressive as a trader. This is why it is so so important to papertrade first and find out what kind of trader you are and to also continue to hone your trading skills. tommorrow I will talk more about paper trading and honing those skills. Until then..........