Penny Stock Online Trading Video

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Stage 1:

Accumulation, shares are transferred from weak hands to strong

hands. This stage usually occurs after a long decline or even after

the stock has had a pretty good advance. In this stage, stocks will

often trade in a narrow range, the forces of supply and demand are

about equal.

Stage 2:

Starts at "big" money accumulation. Seller will eventually thin out

and disappear. The stock become stronger, as the stock continues

move higher, the public become interested and they begin to buy too.

Combined, all of these activities, pushes the stock higher.

Stage 3:

Profits are usually being taken out of the stock, the stock begins

to trade in a range and move sideways. It will usually bounce off of

new points of support and resistance in the process. Compare to

stage 1, this stage has greater volatility and large price swings.

Stage 4:

Begins after demand for the stock dry up. Sellers become King, the

sell off starts. At the bigining of this stage, average traders

often believe the pull back is just a pemporary correction, and

become bag holders. The longer the price advances in stage 2, the

more popular the stock will be once it enters the begining of the

stage 4 sell off.

To be a successful trader, you must understand that it is financial

suicide to buy a stock that is in a stage 4 sell off, and it is

completely idiotic to buy a stock that it is topping out (stage 3).

This article was written by light of stockhideout.com Stock Message Board

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