What is the best way to play an Alert? Should I buy now or wait?

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-Helping new traders avoid my old mistakes-

OTCBB Pennystock trading article topics include:

Reading financials and filings

Market makers 

L2 and chart analysis

Understanding the competition

Using social media to trade

Price and volume study

Bankroll management

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Sub .01 low float setups

Interviews with influence makers

Text alert, email alert...  The stock is running but I a little afraid to buy. What should I do?

Clay did a really good video on this and the evolution of these plays. If you have watched this video you understand a few things

https://www.youtube.com/watch?v=sm0VDjBmqRY

Clay - 'As time increases, opportunity decreases...'

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http://www.pennystocktweets.com/news_letters/index/current_day

This is different for everyone, but in my opinion the best way to play this is not to play it.

Now, if you are going to play it, then play bottom bounce, the dead-cat bounce.

As we know, this is how the play unfolds:
1) Someone buys a bunch
2) Same guy does an alert
3) Other people buy at a higher price
4) There is a lot of selling, all those gains are lost

Most of the time these plays have a bottom, and a rather easy one to call. You can find that bottom by doing a couple different things.

1) Look at chart support levels, and look at price by volume. You have to figure that people who bought at the top are bag holders and will want to "average-down". They will also be looking to buy back in near support level.

2) Watch L2. See where bids are stacking, and watch MM behavior, take your clues from there.

Welcome to Chedsblog!   

-Helping new traders avoid my old mistakes-

OTCBB Pennystock trading article topics include:

Reading financials and filings

Market makers 

L2 and chart analysis

Understanding the competition

Using social media to trade

Price and volume study

Bankroll management

Game theory

Sub .01 low float setups

Interviews with influence makers

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