Video 1: Why Penny Stocks

• Tim is showing the graph of a stock UOMO, where a bunch of newsletters have promotesd this stock into a 20 million volume
• Then two other stocks showing morning spikes and morning drops
• most people think penny stocks are sooo illiquid, but with these newsletters they can get millions trading
• strict technical analysis does not work in penny stocks because you need to know the catalysts
• what gives the sign that the stocks are gonna drop _ VOLUME
  • when the volume shows a drop, it cannot sustain its trading level
• its better to short because if you are long, its very difficult to get out of your position during the drop
• most pumps last a maximum of 3 days

Video 2: How To Research Stocks

• on yahoo.finance you are looking for the biggest % gainers in your price range with a decent volume
• now we need to click on it to find out why it was the biggest % gainer
• Check out the chart and see the pattern and how quickly it spiked and where
• then look at the headlines
• in this particular headline, which happened two months before, there is an announcement for a Research Report by a Research Company
• when a company announces a research report about itself its kind of sketchy
• it brings you to the article, but you really want to see the report, so click the link that will bring you access
• find the report, and if possible, other things they have researched
• view the report
• skip all the fluff, which is the report and go straight to the DISCLAIMER
• All you want to find is where they say they have been compensated
• companies do not want to show that they are being paid to promote
• they will usually try to hide it in the disclaimer by not using numbers
• this specific example, the disclaimer shows that this company was paid $8,000 by the company to promote it
• Now you want to go to the chart
• go to the 1 year chart and look at the spikes and the volume
• see if the headlines have spiked the price
• put on the watch list and be on the lookout for when there is an opportunity that opens up

Video 3: How Pump & Dumps End

• big 3 up days followed by a few big down days
• the pattern is the same and consistent amongst the pumps