I hope to post a quick update later tonight with some stocks to watch for this week. Needless to say FBEC and IDVC are on the highest alert, if you've been following my blog and twitter account you know why.
I just want to write a little note to explain something which I had originally thought even newbie penny stock traders realized. Until I saw this tweet (from someone whom I was told was a good trader) last night.
Here is a tip!! If an ihub board sucks ... odds are the stock sucks NO MOMO or DD!! I have received ZERO knowledge on twitter ZERO!!
— THE LLAMA (@ecostothebank) May 18, 2014
At first it sounded like a joke but further tweeting proved he was being serious.I decided it would be of help to share the following information. IHub is a great tool, when used correctly, when used incorrectly it can cost you your entire investment, and deter from ever trading pennystocks again.
Myth #1
If a stocks "board" is ranked as one of the most posted, most rated, or on the breakout boards it is a definite good sign.
Wrong, getting a stock to be on top of the top board lists is done very easily by one or two individuals that have 4-6 IHUB accounts and just start posting. I know for a fact this has been done many times. I am not saying it never happens organically, but a stock being on a breakout board may indicate to stay away, the exact opposite of a breakout. It may indicate there are pumpers here looking to sell some newbies they're shares.
That being said there are some boards, that are indeed pure and have dedicated longs that know everything about the company. If you find a board like this you can get all the info you could ever want on a stock by going through the last few weeks or months of posts. Special call out to the longs on EPGL, ILNS and SVFC to name a few boards that have smart, and informed longs.
Step 1.Never pay the smallest drop of attention to pumpers and bashers that offer no solid reasoning for said bashing or pumping. Even if they have some info, check it out for yourself. Any posts I see on IHUB that just scream the stock is gonna be a 10 bagger or that it's a total scam without adding anything else I absolutely ignore. Many times people were scared and sold great stock and low prices because of baseless bashers. And many times people have loaded up shares based on promises of 10 baggers without giving even the slightest reason why such a thing may happen (see BigMoneyMike).
Step 2. If you see posted give a opinion and provide some reason for the success or demise of a stock, it is important to always check the post post history, go through his old posts see the last time he was calling a winner and on what date it was then check the history of the stock how did it perform in the days following his call. This is a very key tool to find the best posters on IHub. (This also very useful on twitter, before following a trader study well he previous posts and see wether they were on target). There are a few amazing traders there with great info, the only way to find them is to check old posts do your DD on the poster. If he is, more often right then wrong follow him and see where he goes next. Also beware of "new accounts"a lot they are almost always complete bullshit no matter what they say.
Tip: If you actively use IHub I strongly recommend upgrading to pvt msgs. It took me a while to give in a chalk up the extra few dollars it costs. But being able to private message the traders you like, can be very valuable. They can share with you more information then they are willing to post, and can give you tips on other stocks on their radar etc,
Summary: IHub can be a great tool when used correctly and can be a horrible money waster when used incorrectly. Safe to say in my opinion 82% of IHUB is pure trash so please fish carefully in it's waters. The assumption made by the tweet mentioned above that a stock with a active board equals good momo is as a matter of pure fact complete Bullshit. I busy Ihub board can be done by one person. A empty IHUB board for me personally is a strong sign. As I love getting in on the ground floor of stocks, before you see it on the breakout boards.
Happy Trading!
THP
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