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Penny Stock DD

Education

Intelligence/Stupidity of the Masses

September 2, 2010
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I think we’re *all* trying to understand the psychology of the masses. That’s essentially what the market boils down to, all things weighed.

I’ve touched on this concept a little already with BORSON. The best way to describe it is with this AWESOME experiment detailed in the book Out of Control by Kevin Kelly.

Intelligence of the masses. It’s widely known that if you take a large sample of people and average their individual opinions, you usually wind up with a very sensible, smart decision or answer. This one experiment depicted this better than ever expected. Essentially 5,000 people were sitting in an auditorium with a huge screen in front of them. They were given a red and a green wand, hooked up to a computer. Each person represented a pixel on the screen. A man came on stage and told them to “Make a ’5′ on the screen.” People were confused. Then a fuzzy green 5 started emerging. Then sharper…then suddenly, a perfect 5 was on the screen, in green pixels amongst a sea of red. The people had figured it out. The man yelled “Four!” and almost instantly, a 4 formed. No one was talking to each other, they just were able to pick their own correct wands individually.

Now for the best part. They brought up a screen of a game of pong. “2500 people on the left control the left paddle. 2500 on the right control the right. Go!”

(Read the Rest of the Article…)

Regards,

Don

: Education

This is an Interesting Posting made on another site which I was affiliated with for many years

September 1, 2010
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The piece was put together by a member Spectre who I had gotten to know over the years. It is an excellent article on Warning Signs you should look for when dealing with some stocks.

Red Flags and Warnings Signs for Stocks on the OTC.BB and Pinksheets

I have been getting this question asked of me quite a bit in the recent weeks. “How can you spot a stock scam and what are Red Flags when investing?”
The answer is, there is no clear and cut way to spot a scam. Obviously the better the scam, the harder to spot. Below is a list of things to look for in stock scams. The list is in no particular order and are more or less just red/yellow flags to me that may signal a scam or just that I should keep a very close eye on trading. Just having one or two red/yellow flags is a small sign of caution to me. More than five and I stay away from it, although I still might “trade” it if Momo is there.

(Read the Rest of the Article…)

Regards,

Don

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Read more on Pink Sheets at Wikinvest
: Education

A prime example of holding the bag

August 10, 2010
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The following is an example of what i have been trying to drive home to members and visitors to the site. Tonight i posted an article “Don’t be left holding the  bag” Well it is a common theme and i have already received 2 apologies in an email from these so called “stock guru’s because the stocks fell flat and members lost their money. Here is a sample of one comment from a Newsletter tonight.

Our pick today was hugely disappointing, and I wanted to send out an email to the group and offer my sincerest apologies.  Obviously a 25% loss is not at all what I was expecting, and not what my members deserve from my service.  I was clearly way off with the timing this one, and for that I am very sorry.

It’s now nearly 1 A.M in the morning (EST), and I’ve been searching hours for a something I could find that could make up for this recent pick.

(Read the Rest of the Article…)

Regards,

Don

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: Education

Don’t ever be left holding the Bag

August 10, 2010
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Remember last night if you followed my comment that when i see 14 newsletters, i would give the symbols but not endorse  in any way the stocks and it was for info purposes only. Well, i do not want to get in trouble here so I will not mention names, but you can see clearly what i am talking about when you look at the results at the end of the day. Here  is a very appropriate article.

Why You Should Never “Hold a Bag”

While reading the forums, I see this type of phrase circulating all the time:

(Read the Rest of the Article…)

Regards,

Don

: Education

Some Stock Educational Tips for Investors

August 5, 2010
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Topic for Week 1 – Buying on Rumor, Selling on News

There is a remarkable strategy in the market that makes and breaks investors. It’s called “buy on the rumor, sell on the news.” I have dubbed these types of stocks BORSON’s. (buy-on-rumor, sell-on-news).

The BORSON phenomenon is a simple one to understand:

Rumors start circulating that a certain company is going to do X, or have X happen to them. This is typically good news. Savvy investors begin buying on this rumor, and as the rumor becomes more and more certain, the price rises higher and higher. Upon release of the news, those savvy traders immediately sell. And they make serious profits, but tank the price in their wake.

(Read the Rest of the Article…)

Regards,

Don

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: Education, Stock News
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