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

Missing in action

Hey all. I know I have been missing in action for the last week and a half, Ive been busy setting up a new stock promotion team that consists of people like me who hate pump and dumps and gap and traps and promoters who could care less about you but instead care about their own bottom line.

Im talking about finding good quality companies with revenues and visions of long term growth. Companies that are NOT looking to dilute their stock and actually take an interest in their investors as well as their own growth. Fully reporting SEC compliant companies with full transparency. Products and Services that are real and a solid business plan. Sound too good to be true?  I think NOT.

All it takes is a little due diligence. What Im talking about its ME doing the due diligence before I decide to let the company hire me. If I know going into a promotion what the company is all about then I can do my job for YOU and I can properly present that company to you. A good stock promoter puts a little buzz out a week or two before the promo and then on the day of the big campaign goes heavier getting the word out and then once its over gives 2 or 3 weeks more support to help keep the awareness and the price up.

I will keep you posted as I progress so you can watch the stocks we promote and see that while yes all stocks have bad days, ours dont just tank.

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 Promoter or Predator Promoter?

I started this blog because i wanted to share with people my thoughts ideas and experiences in business and the investment world. As I am still very active in business and investing, my views and ideas are constantly changing. Here lately you may have noticed I have really focused on the inside of investing and stock promotions as I see that this is where too many victims are taken everyday. Greed is an awful thing and immoral profit making at the expense of the little guys really gets my goat. What I am sharing with you is my own first hand inside knowledge of how the insiders manipulate you. I want to be clear that there are alot of good stock promoters out there that do indeed have all investors interests in mind. The experiences I share with you here are posted so as to give you the ability to tell the difference between a good promoter and predator promoter who is thinking of nothing but his or her own bottom line. Be smarter than they expect you to be. Now to todays information:

Pump & Dump for stock manipulators

In order to make these market manipulations work, the professional promoter's assume:

(1) The Public is STUPID and
(2) The Public will mainly buy at the HIGH and
(3) The Public will sell at the LOW

So as long as the market manipulator's can run crowd control of Newbies, they can be successful in their agenda of stock manipulation by controlling the market's greed & fear.

Don't trade on EMOTIONS!

Remember, it's all a bunch of smoke and mirrors. The stock awareness campaign is designed to spread a rumor/story & to play on the emotional greed of a piece of the pie in the sky find. It begins to spread across the investor world. The Joe Smoe public rushes in not to miss the next big 10 bagger and often the trend will replay the next leg.  BE CAREFUL not to get caught up in the hype, do your own due diligence and never chase the stars.

Pump and dump promoters

As much as I hate to harp on one topic, pump and dump promoters really anger me.They take advantage of unsuspecting investors and leave them holding the bag. The main indicators are in the 10Q, if the company actually has one, and in the average volume as I spoke about in yesterdays blog post. Most stock promotions are paid for by third parties that hold a large position in a stock. Really all these third parties are looking for is volume to dump their stock and the promoters will go to any length to dress up what I like to call a turd stock. Promoters will flood the investor boards with promises of good news hoping you will buy into the hype,and then when the news comes out it is merely a bunch of fluff or rehashed news about plans the company has IF it gets financing. Due diligence is extremely important in uncovering these frauds. Dont get caught holding their bag. If you must buy into the hype then wait till after the initial push and watch the stock come back down then see if you can ride it up. Dont make other people rich!!! Most pump and dump stocks hit their high 15 minutes after the open and never recover from the pullback. Watch a few and see for yourself. Until tomorrow......

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

Pump and Dump or Stock Promotion?

One thing I want to say about pump and dumps and promotions is be VERY careful. It is very easy to get wrapped up in the hype of a promotion and then YOU are left holding the bag. I like to use http://newsletter.hotstocked.com/stocks to find out when a stock has been promoted and who has promoted it and what was the performance of the promotion. A promotion becomes a pump and dump when the promoter pumps it while others with a position sell off their stake. This is where my due diligence becomes my best tool. Questions I ask myself are, "How long was this stock promoted?, "what was the performance of the stock during the promotion?" " did the stock hold any gains or did it have its 15 minutes of fame before bottoming out again?" Using a promotion can be a tool if I am trying to get out of a position but be very careful and dont hold too long. I advise against using a promotion to get into a position, as the stocks being promoted tend to be very unstable and uncertain and it is easy to get wrapped up in the emotions of making a quick buck. Knowing your due diligence of a company can help you to decipher whether a newsletter or alert you get on a stock is good news or just polishing a turd to get you to buy in. Dont get caught holding the bag!! Do your homework!! Third party promotions are often designed to get them out and you in. Tomorrow we will look at some stock charts so we can actually see past performances on stocks and how they can help us get in on a bottom and out with our profits.