Hypothesis Stock Market I

This has been done way way back by me on my first economics class in college. Well ok, maybe not that far (12 years or so).

I hypothesized that I would make the most money on the stock market by buying and selling low priced stocks (under 50 cents) because they had the biggest swing in percentage.

Well my theory proved to be correct, at least on paper. I went from 25,000 on paper to 75,000 on paper in 3 months of the project. I was the one with the highest earning of anyone who had done it. Now this had the effect of blowing up my head to an astronomical level. It wasn’t over. I continued on for 2 years and in that time had grown my portfolio to 550,000 dollars (on paper).

A dream had been born, thanks college.

Back to reality: I saved money and created my firt stock account. The stocks don’t quite trade like they do on paper. They don’t automatically trade if they are not having volume. Anyway, I still have the dream and will get the 25k like I did in college. A whole bunch of learning experiences later I realized my dream of having 25k to play with.

One thing about dreams you never have to give up.
I traded and yea found that you can make some money, but the penny stocks do not trade like on paper. They are way slower and if a stock is trading 0 volume you are not going to sell it for what you want.

Learning experience two.
They may not be telling the truth. I put 25 k into one that ended up trading at .0001 and had 70 million shares. Trying to average down some. I was hoping for a pop of a penny. Well I got my pop one day and saw 850k in my account. Exciting time and good thing I didn’t say fuck you to everyone because I actually did like my job. I put the sell orders in and guess what happened it was a glitch. Remember this until the money is in your account and you have sold the stock it doesn’t matter what is showing on your account only after it is final is it final.

After a while this super penny stock issues an earnings release.
Surprize!!
Surprize!!
It was on a handwritten piece of paper.
All of the prior things said about it were not in the looseleaf earnings.
There were no earnings.
The symbol transferred to a fruit company and the cycle repeats.
“The circle of penny stocks” cue music in head.
I have a list of penny stocks I bought.
What has happened to me is they reverse split on me. So one day I had a million shares the next day I had 10 and it is same money. Then what happens is that it usually goes down to the same price as the original so you end up with like a few dollars. You might be able to work it on them but you would be lucky in my opinion.

What happened well I fell in love with one stock and it went over the cliff. I was working a job at the same time as trying to trade. I was not focused, and also did not apply the same lessons I had applied previously. I did not adjust to the new circumstances. I normally bought and sold every day with my previous paper hypothetical account. With real money I fell in “love” with one stock and thought it was the best stock in the world. I had put money in it right, and kept putting more and more. They said they were making money and had investments. How could it not go up? I wanted to hold it and “love” it forever until it paid me my million I deserved for “loving” it so much. I think game can help in the stock market. This stock had never given me anything back it did not deserve my “love”.

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9 Responses to “Hypothesis Stock Market I”

  1. Cannon's Canon Says:

    “I hypothesized that I would make the most money on the stock market by buying and selling low priced stocks (under 50 cents) because they had the biggest swing in percentage.”

    Very sharp of you at that age. Milken and (under him, as I was taught) L. Ranieri brought this idea into prominence, backed by serious dollars.*** The trouble for us small-timers is that you have to be heavily capitalized into your positions to make the big bucks. It’s a lot like bookkeeping – 10% vig is ridiculous profit, but until you can front the dough, you risk busting after two bad weekends.

    “So one day I had a million shares the next day I had 10 and it is same money. Then what happens is that it usually goes down to the same price as the original so you end up with like a few dollars.”

    Fortunately, this will not happen with FAZ, at least right away. Eventually, all shares (of all companies, not just financials he he he*****) will be worth 0.0000 and GS will be worth 9999.99, or the infinity symbol. I’m still rooting for the big drop later this year, DJI@5000-type style.

    “I wanted to hold it and “love” it forever until it paid me my million I deserved for “loving” it so much.”

    Sounds like a woman I used to know… a long, long time ago, of course.

    *** taking it back to a roissy theme, risk-aversion is a feminine, estrogen-laden trait, obviously endorsed under this democrat electorate. thus, penny stocks are fucked.
    ***** borrowing the trademark gsg “lol”

  2. gunslingergregi Says:

    Cool thoughts,

    What do you mean by serious backing as in number?

    Yea the answer I came up with is located in my matrix post. The problem with penny stocks is you can’t drop 10k to 60k on them even if you wanted to and get out within minutes. Then even if you did you might not be able to sell. Stock market is not endless. Like everythiing in life as you age it gets smaller just like you can put a number on the amount of army equipement there is.

    I worked out a spreadsheet just like they do at the car dealerships when they ask how much of a payment can you make. I say with stocks how much money do you want to make on each trade and then you know how many pennies you need it to move.

  3. gunslingergregi Says:

    Ok if I would have flown to the companies headquarters and asked to see paperwork. Yea that would be the way to trade em I would imagine. Then I would have known they didn’t have shit.

  4. Cannon's Canon Says:

    Your organization is commendable and, obviously, exceptional amongst the crowd. Are you ever resentful that you are not further ahead?

    I’m an amateur myself so I don’t know or remember your percentage stake in penny stocks, ideally. My econ 402 teacher assigned ‘Liar’s Poker’ by Michael Lewis. It’s a terrific book: well worth $13.95.

    He’s a great writer and a descendingly mediocre man.

    I was enamored by his writeup on Shane Battier.

    I still scolded my mother for reading the NYBTimes.

  5. Cannon's Canon Says:

    “The problem with penny stocks is you can’t drop 10k to 60k on them even if you wanted to and get out within minutes. Then even if you did you might not be able to sell.”

    It is a problem, but not for the reasons you are referring to. The greatest American hero of this past 4th of July weekend must be Serge Aleynikov. GS can sell penny stocks in front of traffic alllll MF’in dayyyy.

  6. gunslingergregi Says:

    yea shit if you could game em would be sweet.

    But check it 4 months of that list was 66 percent return.

    Got toasted on dcp long almost completely.

    Then made it up in november when I crossold dcp and kbr while dcp dropped to 10 which would have seriously caused pain. Kbr went up at that time. Which put me back in business at the time.

    I had to switch to the gay hold mode in order to meet some work type obligations. 4 months 66 percent not bad but yea not as good as pennies would be. Shit they be flipping 100 percents. Talking .0001 to .0002 to .0001 then back.

  7. gunslingergregi Says:

    ”””””””””Cannon’s Canon Says:
    ””””””””””””””””””””
    July 23, 2009 at 5:40 am edit

    Your organization is commendable and, obviously, exceptional amongst the crowd. Are you ever resentful that you are not further ahead?”””””””””””””””

    Sometimes I feel like I wouldn’t of had the experiences I have had if I would have busted my first mil by the age of 25. I think something to do with inner game. Think about it I would not have done a lot of the real shit I have done if I would have been in mills by that age or so. I have gone through a lot of growth in my mind I have been in almost every environment known to man. Would I have gone to two wars if a millionaire. Probably not. Was it a dream to be rich and go to war when I was younger yes. I think you need to be able to handle the money. I also realize that I can spend a mil in prob 6 months if I wanted to. Yea fuck that of course I wish I would have been a millionaire lol

    Athough if that where true I would already be one.
    This point though I think I am ready for the next step.

  8. gunslingergregi Says:

    I lied. Let me repeat that I am excited to stop now and start stocks full time because that would put me in a position of do or die. Which is fucking exciting.

    Can you imagine the impact on the rest of my life pulling it off or the depths of despair for failure. Yea memory creation at its finest.

  9. gunslingergregi Says:

    Or stay here till december and be basically good. I need to start looking at guarranteed success as a good thing to. he he he

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