Accumulation(Beginning stage of the pump) This is where the orchestrators of the pump accumulate the stock. The accumulation time varies but it’s usually a few days to a few weeks. It’s virtually easy to detect when the accumulation is occurring by looking at the company’s chart. If you pull up the volume (as shown in this real life example), there is an instant spike in volume. The stock virtually goes from dormant to active overnight. This is where the beginners of the pump “buy-in”. Notice, while there is a spike in volume; the range of the stock doesn’t go far. This is purposeful. You want to buy up in huge quantities without spiking the price too much.
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By:ShortMeTina This blog is more so for seasoned traders but individuals new to the game can file this under “important lessons”. I don’t hear it discussed much in the trading community (at least the ones I visit) but someone I follow on Twitter wrote briefly about it in a blog. Coincidentally, a week or so later, someone on Stocktwits sent me this message, Shorting 101 What exactly is shorting? If you’re new to investing or trading the stock market, I would STAY FAR AWAY FROM SHORTING. However, the more comfortable you get with trading and the more profitable you become, I believe it’s a must have in your trading repertoire. Essentially, shorting involves borrowing x amount of shares from your broker and selling it at a specified price (set by you) on the open market. At some point, you buy back the securities on the open market and return them to your broker. Thus, allowing you to bank mucho dollars!
By: ShortMeTina
The time frame you decide to use should be based on your own personal preference. My suggestion would be to analyze your performance more frequently (weekly) if you tend to place a lot of trades, less frequently (monthly, quarterly, annually) if you’re not active in the markets. Personally, I tend to look at my performance on a monthly basis. Don’t get caught up with what time frame is necessarily best at this juncture, I would just be concerned with doing it and remaining consistent with the process. If you’ve visited my website, shortmetina.com you’ll realize that I’ve been trading the markets for over a decade. Like most traders, I blew up a few accounts. Lost tons of money in hefty tuition fees and came very close to giving up on the markets because it seemed so random.
After some years, the markets became less noisy and things started to make sense. I saw some successes but I truly believe, I arrived as a trader after reading Edwin Lefevre’s Reminiscences of a Stock Operator. I can go on and on about this book but it would only serve as a spoiler for my readers. Before quoting ten "spot-on" quotes from the book, I will leave you with this interesting fact. Although the book was first published in 1923, it remains very relevant in todays trading climate. There is nothing new on Wall Street. Enjoy Speculators. By: ShortMeTina
Why is it so hard for us to do nothing? Does it make us feel less productive if we do nothing? Do we feel stagnated? How about stuck? How about arrested in our development? I want to know because some folks are always needin' to be in the Markets and I can't seem to figure out why. Why yes, a purposeful play on grammar but I hope the message is clear. That is, folks tend to equate constant trading with trading success. And it’s the furthest from the truth. Super active traders know this! Through the reality of their PnL’s (profit and loss), they are losing money. By: ShortMeTina
Updated: 3/14/2018 In the markets, you MUST be governed by rules. I am presenting you some of mine; I encourage you to develop your own. Trust this and trust the process. Reject the teachings of others... ...in ShortMeTina we trust. |
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