Small OTC stocks are a pyramid scheme, a sucker's game. The guy who spams you/gives you a hot tip/posts in the Yahoo! boards/whatever else he does to convince you to buy/ is actually the guy you will later be buying stock from. Think about it. If there is no volume and this guy's holding, who are you likely buying from? He's taken a large position at rock bottom, and is scaling out as he pumps it up. It's easy money for him, as long as he can sucker someone else into paying more than he paid for the intrinsically valueless shares. If he can't, he's screwed. But if he's a good salesman, and persistent, he can, since there's no shortage of greedy newbies looking to $$Make Money FA$T!!!$$ in this world. And then it's easy money for you, as long as there is an even bigger sucker out there who will buy your shares. Eventually someone is left holding the bag (The Greatest Sucker Of Them All), and that someone, more often than not, is you. I say "more often than not" because if this kind of thing worked consistently for anyone but the lawbreaking pump-and-dumper who's in control of the whole deal, we'd all be doing it. But over time, your tragic losses will more than offset your lucky gains. With no liquidity, you might be wanting to get out for a week or two (or longer) before another sucker comes along to bite your hook and swallow the flaming turd you're offering. And if it starts crashing down, and you want to sell your shares to another sucker, good luck. You can kiss your entire stake goodbye.
He's using you, or you may be trying to use us. Either way, I don't take part in other people's scams unless it involves two hot women with loose morals, a jar of mayonnaise and a scuba suit -- though personal experience tells me not to mess with that anymore either.
p.s. If he tells you it's going to $8, you're wise to get out at 4 or 5, because he's told everyone else to hold until 8 (which is how high he thinks he can pump it before reality kicks in), and there will be a rush on to bail out at 6 or 7. Remember, it's a game based on greed and timing. Whoever gets out quickest wins, and the dealer holds all the cards. Whenever he wants to kill the game, he can.
p.p.s. Do a search through the archives. I can swear I've written this post before.
p.p.p.s. There's a sucker born every minute. Don't let it be you.
He's using you, or you may be trying to use us. Either way, I don't take part in other people's scams unless it involves two hot women with loose morals, a jar of mayonnaise and a scuba suit -- though personal experience tells me not to mess with that anymore either.
p.s. If he tells you it's going to $8, you're wise to get out at 4 or 5, because he's told everyone else to hold until 8 (which is how high he thinks he can pump it before reality kicks in), and there will be a rush on to bail out at 6 or 7. Remember, it's a game based on greed and timing. Whoever gets out quickest wins, and the dealer holds all the cards. Whenever he wants to kill the game, he can.
p.p.s. Do a search through the archives. I can swear I've written this post before.
p.p.p.s. There's a sucker born every minute. Don't let it be you.
:eek: