I will post chat logs after the session currently in progress but here’s some notes from the emails sent in.

QUESTON: When you sell do you usually sell at the bid or the ask?

95% of the time on the offer I would say, I like to sell into strength, if you wait til it’s too late a lotta times you coulda/woulda/shoulda got such a better price. I’d rather say I coulda/shoulda/woulda made rather than I shoulda/coulda/woulda taken it off but now I have a loss cuz I was greedy

 

QUESTON: In chat when you say “add (ticker)”  Does that mean you are buying it?

Like I had suggested on Friday when someone asked, I would review Muddy’s 2 seminars on “Muddy Method” to get a good understanding for the Pre list.

The two links are:

http://www.investorsunderground.com/2009/09/20/september-20th-seminar

http://www.investorsunderground.com/2009/09/27/seminar-september-27th

The pre list is just a cheat sheet to what’s active on the day, where our focus is to start the day. No, this isn’t the only stocks we are watching since we’re actively screening all day to stocks on the move. The pre list gives us what is active, trading higher and of interest that morning. What stocks are reacting to news, what stocks are reacting to a pump, what stocks we should be watching for a possible entry during the morning/day. Just like our term “pull” we don’t like to just buy a stock up huge on the morning, we’d rather watch for the pull back, watch for it to find a support level (whole number, mid dollar, chart support/resistance etc) or pick it up off a big dip out of open where it may just be profit taking into the big gap and attempt to scalp a long on the rebound.

QUESTON: It seems like most the time you sell at/near the top of a peak.  How do you do that?

Same thing I went over last weekend – incher to pop/breakout mode I always take some into the rush.

You need to release the greed in these poppers and start taking profits before they reverse.
I made seminar notes from last weekend – view that here: http://www.investorsunderground.com/2009/11/09/seminar-notes-11-8-2009

If you catch a 20-30% move and you feel no need to lock a little bit in, and you don’t have a big account to let it ride while you’re playing other things, you’re just asking for disaster. Anything below $25k you should be stacking those profits left and right as you see them, it adds up fast, faster than you think.

QUESTION: Being new I’m note sure when to buy or sell a stock being mentioned.  When you mention a stock and say something like nice or look at this stock, are you saying you are about to buy.  I feel like I must be to late to get in so I don’t.  I’ve learned a lot in 1 week but the most I’ve learned is how much i don’t know. this week i studied the 10/60 cross and it is amazing. Thanks.

First and foremost we aren’t giving buy or sell alerts here, that’s not our gig. We have seminars to teach you how/where/when to get in and out and what to look for. I would suggest the June 28th seminar and charts to see what kind of moves off consolidation we look for and where we are looking to take profits. Take a look at those 2 seminars as well as these charts: http://www.investorslive.com/seminar

You’ll see exactly where/what type of charts I look for.. for my entry.  During th day you’ll see the same charts forming on the stocks I alert. For example STT a nice launch pad set up, consolidation before the re-test of highs, http://www.investorslive.com/seminar/1.PNG most stocks I play look like this.

For shorts: http://www.investorslive.com/seminar/mbi-channel.PNG
For longs: http://www.investorslive.com/seminar/wfc-channel.PNG

Lastly, a reminder that I have no problem giving you guys my entries which I do on stocks on Nasdaq, AMEX, NYSE and OTCBBs with lots of volume but I’m not interested in providing entries on these promotional pumps and things like that. If you are unable to pull the trigger yourself and these OTCBB and Pinks and need someone to give you the entry then I especially would NOT play them until you pick up a bit more knowledge and are comfortable trusting your own decision and what you learn, until then stick with stocks between $5-10.

QUESTION: Last but not least is there a scan for that 10/60 cross that i can use with equityfeed? Thanks

I don’t use the equityfeed for a 10/60 cross. They just added in Simple Moving Average to their package – you may be able to call them and ask them if there is a feature like that but that’s more on the chart side of things when the 10 min crosses the 60 min.

QUESTION: For a surging IPO like CLDS, how do you decide when to get out?

Usually like I said on the first day and the recap there’s a solid 2-3 days out of it before any real selling, so if it surges outta the gate tomorrow I will more than likely take 1/2 off and get down to a 5,000 share positon. After that I will just monitor it just like I did on TRET, NXTH, CLRH etc. Watch for hiccups and any large volume (ie: large volume towards on the offers but no real price movement higher may signal a top near/resistance may be worth cutting down a position size.

QUESTION: Since so many HODs are posted in the chat, do you take positions in all of them just in case one breaks out?

Absolutely not, would never suggest to take a posistion in all of them that’s no way to trade. Most times its stocks that members know are former runners or that we’re all in, or previously discussed. If I mention I bought a stock earlier it may just be updates to my position, or if its nearing 52s or prior resistance that was on our scans the night before (ie: My scan, Darkside Watches — which you should be familiar with these charts going into the next day) it may just be a reminder, “hey… keep a watch here nearing HODs and as you know if it’s near a whole number I’m definately interested in playing the break most times.

QUESTION: Other than a good finish, what criteria do you use to decide when to hold overnight and over the weekend?

That’s in, strong finish – I don’t really like holding stocks on OTCBB/Pinks up 100’s of %’s on the day, usually don’t make for good gappers but other than that strong finish. Some tips: You can always look at their prior charts see if they have a history of gapping, see if they normally are one day wonders or usually carry through.

QUESTION: You talk in chat about level 2 and particular market makers and which way you think the stock will move.  Do you have any resources (books, DVDs) you would recommend that might help interpreting tricks/understanding level 2 and what is actually going on?

No, I just mentioned it one time on VKNG with market makers I noticed as bid support for the particular deal and since then everyone has tried to apply it to every other stock. it’s just something I noticed on that particular stock as well as FRHV that day. Other stocks like BRGO it was obvious anyone watchin level 2 that MICA was the only seller that morning on the first pump day, so when he was on bid and buying blocks you can more than likely make the assumption that hey, this may be support given they are buying it back with the same market maker they sold millions of shares through.

QUESTION: I ‘ve heard a well known trader/educator  state he doesn’t use level  2 anymore because it’s so manipulated since the market makers play games especially now that so many people are watching. Would you say that it is more advantageous than not to watch level 2 and do you think level 2 is a more accurate representation in OTCBB and Pink Sheets?

I always do, that’s just one of the things I taught myself with along the way. I use Level 2, time and sales and 1 minute charts. I find it helpful on OTCBB and Pinks, and on stocks with lower volume (1-2mil) around .50 cents to $5 range. Muddy doesn’t use level 2 just the quote boxes through scott trade so he doesn’t see level 2. Any other trader/educators I can think of are Tim which doesn’t really trade too many OTCBBs so doesn’t really apply here since he’s looking at more of a longer term picture than the momentum trade.

QUESTION: I’ve often learned a lot in after hour chats but I can’t always watch them. Do you save the after hour chats and is there a place that we can view them?

Yes any day in particular you have interest of or saw a conversation you had interest in let me know and I can always forward, they are emailed to me at 3am every night.

QUESTION: I’ve recently signed up for SpeedTrader and notice a huge difference in executions compared to Etrade and Ameritrade but I’m still trying to figure out direct access. Using SpeedTrader I tried to buy a stock the other day and directed it to NITE. The order sat there for 45 seconds with no fill and then I placed a duplicate order to ARCA and it immediately filled. My order to NITE still didn’t fill even though NITE was the best ask so I cancelled my order. It cost me more in commissions to go through ARCA but I got the price that I wanted. Do you have any suggestions as to who to direct orders to for the fastest executions? Also, are there preferred routes to use for OTCBB and Pink Sheets?

You’ve got it right, ARCA may have been on the stock as well depends on order size and if the route is locked. If there’s a lot of retail going for NITE than it may put you in line whereas ARCA at times could flash fill. I rarely if ever use ARCA on OTCBB unless bidding for it or pre market. Other than that you’re on the right track – just use what’s on the offer or 90% of the time I use NITE route.

QUESTION: Sometimes I go to direct an order to whoever is the best bid/offer only to find that market maker leaves after I place the order. To ensure the fastest execution and that I get filled I always put the price a little higher than the ask or a little lower than the bid. Since the market maker sometimes leaves after I place the order I assume that it gets re-routed to another market maker. Is it better to put in a price using a specific market maker and hope I get filled by that market maker and if not re-routed or to just put a limit order to no market maker in particular. (My concern here is the quickest execution time.)

Yes NITE is the best all around since they handle most order flow and will hit anyone directly as well. If you are chasing a stock and therefore the offers are jumping as you’re trying to get in yes I would suggest a bit above the offer just in case. Yes it will hit whomever is on the offer, it just may be slower than a direct route, that’s all.

QUESTION: What is the best brokerage firm to join that offers fast execution (1 – 2 seconds) of all types of stocks including the OTCBB and Pinks sheet stocks?  I am currently a member of Thinkorswim and I not happy with its execution of the OTCBB and Pinks.  I submitted an order on Friday and it sat out there for almost 30 seconds before I cancelled it.  Also, I have no Level II depth on these types of stocks.  On Friday night, Laura recommended Harmon Trading Group, but they are no longer accepting new member applications.  I read it on their website.

They are accepting applications I talked to Clyde on Friday again. Just mention IU and you’ll receive $8.95 comissions instead of $9.95. SpeedTrader is best for 25k+ executions on OTCBB, IB is the best for shorts/cheap comissions, CY Group is great for propeitary trading and lastly Harmon is th same platform as SpeedTrader but a partnership firm for those udner $25k. And again, anyone under $25k should take a look into these because “I’m under the PDT rule and that’s why I can’t trade” etc etc is no longer an excuse, so stop using it 🙂

QUESTION: I read the Proprietary chat log where InvestorsLive talked about the Cy Group.  He stated he was going to try it.  What were his thoughts especially using of the platform?  Does it offer fast execution of all stocks including the OTCBB’s and Pinks?

No I didn’t end up opening one and no they do not allow trading OTCBB and Pinks. I would suggest to hang around after hours any day and ask users to PM you about the platform and I’m sure many can help you.

Your buy of NLST was well executed. As you’ve explained previously you love to buy dips after a gap, so you waited for the dip and purchased as it 6.38 after a slight dip. My question is whether you ended up selling for a quick scalp when it hit around 6.75 immediately after, or did you hold even as it came down to around 6.31 (below your entry by 7 cents) and then back up when it broke to new highs? If you did hold all the way through, did you get nervous about it continuing to break down below 6.30, or were you fairly confident that with this setup it was destined to move much higher.

I always sell into a big pop if it happens right after an entry (at least 1/2) that way I can let it test lower and not really worry about a dime or so. Please see the June 28th seminars as to how/when I would sell given certain moves.

What are the parameters of your nightly scan, and your active daily scan. I know it’s through EquityFeed, but what are the exact parameters the scan is looking for, as far as  current volume, previous day volume, price action, etc.

My nightly scan is not Equityfeed it’s StockHouse which you can see here: http://www.investorsunderground.com/stock-fetcher-scans/

But yes it scans for higher than average volume, gain greater than 8-10% and a bunch of other parameters that are linked right off the website.

Equiyfeed is what I use during the day for my OTCBB/Pinks.

I have been trading in this room and involved in penny stocks for less than 2 months and I have to say by far this is the best stock picking chat room on the planet.  On a percentage basis, no one can compete, but I am interested on what your thoughts are about how long this can last.  Is this the absolute best penny market you can recall in all your trading years.  Are you guys and gals making more money now than ever before.  A good majority of the stocks that seem to make the best gains are involved in the biotech arena.  I’m thinking this space may be hot for the next few years, but I’d like some input from y’all on that.

Who knows it wasn’t hot for a long time, hopefully it stays hot. That’s an answer no one has and I don’t really think if there was an answer it’d help us any in the near term – so let’s not wish it away and hope they keep coming.
No not making more money than ever before but yes the past 3 months are my best 3 months in the past 3-4 years. I don’t even know what sectors are hot – if you spend too much time thinking about that you’re going to waste time searching while you could be in a stock running that’s in the “hottest iphone application and twitter/domain name search engine” space aka BLAP. 95% of the time Muddy and myself have no idea what we are trading I would suggest the same to you.  Over the years I have learn the less you know the better, just trade what the market gives you – let others worry about the rest.

 

On Friday, you pointed out NLST and said that it could have a jaw dropping day.  I’d like some insight into how you could possibly know that before it had even opened.  Was it the pre-market volume, the chart pattern, a gut feeling, technicals, or do you have a time machine we don’t know about.

Was a pretty good call wasn’t it? 🙂 http://www.investorslive.com/2009/11/21/netlist-inc-nlst-jaw-dropper-friday-could-test-8-not-7-8/

Everyone was busy talking about how it was up to much, 100% short but failed to look beyond that – if you took it day by day and played whole numbers like we preach saw the $6 break, held that as a base in addition Friday potential squeeze and on top of that hardly any shorts available, you’re in for a pretty good ride. When everyone in the world knows about a pump/stock usually the top, when everyone in the world says 100% short .. usually a good squeeze – key is not to be pre mature and/or take your loss otherwise you’ll end up with a big loss like everyone else that broke trading rules on that trade.

Do the brokerage firms the moderators trade through offer insurance on the investor’s capital?  Whether it’s the Cy Group or any other brokerage firm, I would feel better knowing my money is insured.  I didn’t read where Chuck clearly stated that an investor’s capital is insured by the SPIC or a private insurance company.  The last thing I would want is to log in one morning only to find my brokerage company is bankrupt.

You have to realzie that CY Group and Harmon aren’t regular brokerage firms. It’s basically pooled cash which allows you to bypass the PDT therefore they are not “individual” accounts and no your account isn’t FDIC SPIC or wahtever all those things are insured, the firm as a WHOLE is.

If you are uncomfotable with it I would suggest just staying under the PDT but I’ve had an account that Harmon for nearly 4 years maybe 5… before I knew SpeedTrader existed. So, I’m good with it.