Hey guys, in this video I want to go over why I preach that you should never hold any of these stocks overnight. A lot of people do that and it's in a lot of strategies, trading strategies of holding stocks overnight holding them long. And some people are successful with that. But I think when you're dealing with OTC VB and pink sheet stocks, you cannot take the risk of holding it overnight. The problem with these stocks is that there's just too much manipulation too much going on and and the thing though, is that it's it right now it's March 23 2014. So the thing that's going on now, though, and the reason why it's even riskier now is because of the fact that the SEC has started to halt a lot of pumping dumps on a very frequent basis from companies entering into the marijuana industry, to just a general pumping dumps, you know, the SEC has always All of a sudden, for the last month or so have been taking a much more active role.

So that's why, you know, you might have seen some other videos in the past you might have read other blog posts or done trading for a while yourself and now you're getting back into it or whatever reason, you know, it's March 23 2014. now and in the future, I think to the SEC is now taking a much more active role in in halting these stocks whenever they would break the rules. And the OTC and pink sheet stocks tend to break the rules very often. So let me just give you a real life example of why you should definitely never hold these stocks. So this company's you PIP unwired planet. I traded this yesterday on Friday. I saw that after the market closed on March 20, right 16 meaning for 21 so the market was closed.

They signed a deal with Lenovo. A patent license and Pan purchase transaction so this is clearly good news so I knew that I put it on my watch this the next day it had good volume being traded it fit all my stock screening criteria. So I definitely put this on my main washes because I knew there was going to be or it was it was a good catalyst. You know, I followed the double catalyst rule. This was one very strong catalyst. So I put it on my list and I saw that you know, in the morning right when the bell rang, it started off very high I knew was going to gap higher I quickly bought it.

I watched the level two. Did I get the Oh, that's pretty crazy. I don't think I think if you've gone closer, it reached a better high. But this is showing and you can you can tell right here right here shows up when I mouse over, you can see up top, the amount. I bought it at 206. And so that 219 so you know not not a huge runner, but still good and I did that trade in 49 seconds.

So it looks like I'm almost Cut Cut the peak. I don't remember if I did or not but again, the way I do that is I watched the level two so I see as soon as the volume starts decreasing the there's a lot of two nine teams being stacked on the Ask side and basically a wall of sellers. So I knew that I had to sell and get out of my position because it's this is not gonna be like a huge runner it was gonna it was gonna the momentum was going to shift so but Okay, so this is you know, so I got I made my profit got out literally a one minute trade, made a whole bunch of money, great. Whatever then this was choppy the whole day. Huge dip here for no understandable reason. But anyways, so the reason I recommend never to hold the stock overnight is because you would think you know, if you go to this company's financials that are solid financials, good cash, you know, increasing revenues.

Good, you know, I mean, not good ups but normal ups. I know Before for an OTC improving ups I'll say that so but this you know this was definitely a good sign for it so you would think that it would uptrend and everything but again you can never buy in to these penny stocks you know they're manipulated you don't know what's going to happen um you know in my head for a little second i thought you know maybe I should hold this because I think it's gonna go up you know just signed a deal with Lenovo for patent you know it's gonna get some good attention it's kind of the price is gonna shoot up but then God has stuck to my rules and sold because I'm not even talking about this dip here. All right, you know the if this if this stock kept, you know, kept going it could have increased higher because this is very good news, you know, deal with Lenovo, but I decided to take a look at the stock afterwards and I don't know why it doesn't show it here.

But what happened on March 21, which is a Friday. Let me put this in What happened was just Friday, right after the market closed, it was halted. The SEC halted the stock because they think that it was manipulated, and they don't have much proof with the dealings and you know what, I didn't even research why, exactly. But in general, you know, I don't once I make money with a trade, I don't go back into it. But, you know, these trades are these penny stocks. Again, these and whenever, when I talk about penny stocks, I mean, the OTC and Pink Sheets, you know, they're not companies that you want to invest long term and you want to make your money and you want to get out and that's why I believe you should never hold overnight, you know, now, now, after the stock opens, it's gonna do a huge dip.

You know, and who knows when it'll open might take days, weeks, months after the investigation. And you you know, you're if you if you had this company, you wouldn't Be able to buy or sell it. So you would have your money tied up in this stock. And it would just probably open at a huge loss and it would be terrible because you're you'd have money tied up in this stock that you know, you're gonna lose a whole bunch of money. So, you know, I hope you take my advice, you know, NASDAQ stocks, New York Stock Exchange stocks, those if you want to try holding overnight, you know, go ahead. Those are a lot more official companies, but never hold OTC or pink sheet stocks.