EYII, the train is on the move!

Quote from Strategery:

I was thinking about playing with one of these yesterday. What kind of problems did you run into? I have never traded stocks like this. I see the mkt is like 5k to 10k up per price tier, did you buy the offer and there was nobody there to replenish? Were you faded?
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Longhorns is partially correct. According to the "Exchanges" he mentioned the Pink Sheets states emphatically that quoted prices & sizes are not firm. However the BB states that according to their rules quotes & sizes are firm (talked with several people there to confirm this on multiple occassions). Let me state before my explanation that you can & should expect to lose every so often trading in these issues. I find the winners outnumber the losers by a large percentage. Also the person that started this thread I do not know and they are relatively new to ET. The ET poster KUKAMAN has on several occassions posted some very nice BB winners on these boards.

THE PROBLEM:

The problem with trading in these issues IMO comes down to one thing...Knight Trimark (NITE). They ARE the largest MM in many stocks and have almost full unmonitored authority to get away with whatever they want to do. The NASD & the SEC turn a blind eye to their activities. They pay for order flow from most BDs and they will not do a trade if they do not want to. I have offered to purchase above the inside quotes at NITE and they refused. I have also offered to sell below the inside bid and been refused. This is a clear violation of SEC rules.

On another thread I asked for help woth quotes on CWPC, that day I offered above the market and was refused. In that thread another trader suggested using GNET and I am now for many orders, but every once in awhile you must use NITE as they are THE market because of order flow. Even self clearing firms will send some orders to NITE.

These "Exchanges" are great places to trade IMO, have some extremely profitable businesses listed there, and could be improved immensely by reducing NITE in their role. One way to do this would be if every trader that has DART capability send orders away from NITE for about 90 days to 6 months. They would get the message (loss of income) and probably become more honorable in their business practices. BUT, alas I seriously doubt if even 10% of the traders would do this.

Bottom line....my profits in HYRF were lost to NITE in EYII

Hope this helps! If you need more info let me know.
 
Sorry, brain fart here. I thought you were talking about the previous discussion on executions.

Quote from Strategery:

I have no idea what you are saying. Please elaborate.
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Quote from da-net:

I had not read your post until now, however I jumped on HYRF this morning and have taken 21% off the table in 30 minutes. If it drops down some later I may come back in. EYII I don't know anything about but it popped up on a scanner for today, I'll take a closer look at it technically.
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What kind of scanner are you using for pink sheet stocks?

Thanks.
 
Hi Casey,

I use Stock Fetcher. I learned of it from these boards. I watched the BB and Pinks for quite some time, made observations while watching them and then developed my own scan parameters for them. I like trading BB stocks, but am extremely cautious of trading Pinks because of the info in my previous post. I know lots of others here are snobbish to stocks on these "Exchanges" but I find I can really control risk and thereby drawdown with these and have good leverage for gains through the use of size. I do have my losers, but I try to keep them small. Plus it is a lot of fun to have a huge percentage win in a few days.
 
Casey,

I use Metastock Professional to scan volume and breakout alerts on EOD basis, then I just do my homework, searching some news and fundamentals on my filtered lists.

I also search if people are already talking about these stocks on some boards like:
RB
www.investorshub.com
usualy, when there is a lot of pumping talking going on, I just quit the trade ;)

For experts opinions and to cross it with my opinion, I choose some of the resident members at www.3stocksonfire.com, where I find some trading ideas as well.
 
Quote from fstrader:

Anyone still following these stocks? I was liking HYRF in particular this morning.
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both popped up on my scanner for today...watching what HYRF does @ $0.90...if it shows strength I will trade it, but EYII when it performs like this I get cautious...
 
Dang! Too bad they gapped up. I was watching HYRF during premarket as it made its way through the 80's. But unfortunately Scottrade doesn't provide ability to trade premarket... at least not that I could find.

Anyways, the risk-reward is too high for me now, although it looks like further gains could be likely.
 
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