DEG

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$1.23 de grey mining limited

Market Psychology, page-3

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Chicken4dinner

442 Posts.

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05/08/16

18:11

Post #: 18456676
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Originally posted by Purav Shah ↑

Market Psychology (Penny Stocks)

The market psycholgy for penny stocks is very much like a bell curve which can be divided into three stages:

Pre Stage 1: Not many people know about the company. Limited number of investors who bought in at the top from the previous run are still holding waiting for the SP to pick up. Unfortunately they got in too late and its a long gruelling wait before the next run.

Stage 1: Create relevant interest in the market for the company by publishing articles on various websites, emails from Hot Copper etc. The big boys pump up the SP by buying in big chunks. This creates even more interest in the stock.

The big boys sell their holdings to the new buyers who enter the market at Stage 1 making a nice decent profit. The new buyers start their research into the company and start expecting good returns on the back of good announcements.

Stage 2: The big boys have no more shares to sell, supply at that SP achieved at stage 1 is drying up. On the back of some positive news the SP is pumped up again similar to stage 1 by the big guys. More interst is created and new buyers step in. The big boys and some of the investors who bought in at Stage 1 sell their holdings to make a profit.

Stage 3: This stage is the peak and most money is lost here. Once the supply dries up the SP is pumped up again to the max it can achieve. The people who buy in at this stage are amateurs who make massive losses.

As expected, the bog boys start selling their holdings making decent profits, same as the investors who bought in at stage 1 & 2.

The SP keeps dropping to a level where thebig boys think is the right time to step in again and the cycle is repeated again.

I reckon we are still at Stage 1 and if we have the patience good profits can and will be made.

Looking forward to next week. Good luck to all.

Expand

Stage 1 at 1c
Stage 2 at 1-2
Stage 3 big boys already sold
Stage 4 we r waiting on news

DEG Price at posting: 0.4¢ Sentiment: Buy Disclosure: Held
1 Upvote

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(20min delay)
Last $1.23		Change 0.085(7.42%)		Mkt cap ! $2.948B

Open	High	Low	Value	Volume
$1.20	$1.23	$1.19	$11.98M	9.913M

Buyers (Bids)

No.	Vol.	Price($)
4	90825	$1.22

Sellers (Offers)

Price($)	Vol.	No.
$1.23	141096	16

View Market Depth

No.	Vol.	Price($)
4	90825	1.215
6	102083	1.210
3	56204	1.205
8	164419	1.200
4	122619	1.195

Price($)	Vol.	No.
1.230	141096	16
1.235	126846	5
1.240	183947	7
1.245	144680	6
1.250	335263	18

Last trade - 16.10pm 13/09/2024 (20 minute delay)

DEG (ASX) Chart

Market Psychology, page-3

Vulcan appoints investment bank and M&A veteran to board

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Market Psychology, page-3

Top Stories

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Utah authorities sign off on Anson's lithium extraction plans at Green River

Antipa divests its Citadel interest to JV partner Rio for A$17M, refocuses on Minyari Dome

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Week 37 Wrap: HotCopper likes Cuban oil; markets shrug debate off for Putin; firebrand quant says social media a market threat

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Mako sniffs gold at 170 g/t at Cote d’Ivoire's Napié play

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Buyers (Bids)

Sellers (Offers)

Featured News