Finance

5 Pages 1249 Words

The savvy long-term investors never chase stocks up. For the most part
that is momentum players and daytraders where most of it or what follows
is dumb money. Instead the long-term investors use a couple of simple
strategies in order to position themselves. One is to find a stock no one
immediately sees has huge potential and accumulate. Long-term investors
are not interested in trading against the public mind or the dumb money.
That's where the majority of the money can be made but even more can be
made if the base of a stock is held extremely strong by investors. However
the second is not to doubt the research which is the underlying basis for
going long and holding.

More and more investors are winning the game nowadays despite all bashers
that float through the Internet that has become part of the game. Floor
traders of market makers often watch CNBC, news wires and bulletin boards
in order to follow the market during trading session. OTC BB market
makers (MMs) don't use fundamental and technical analysis. However, what
they do realize is a lot of dumb money does use this newest nitch charting
or TA (Technical Analysis) to run a stock either up or down. To the MMs
this is like taking candy from a baby. Simply they will paint the tape and
use whatever tactic to affect the charting bands. Thus the public and dumb
money they will have eating out of their hands. Effectively the MMs can
show a strong stock growing weak by manipulating the close price in order
to generate selling volume, delaying trading time to manipulate trading
activities, or even stalling the ask without honoring orders to hold a
stock price.

MMs follow a simple code of business when making a market in a stock
especially an OTC BB. That is the level that stocks will seek that yields
the most volume. Now this is very important because they make money on the
volume buying at the bid and selling at the ask. In othe...