On December 27th, 2011 I bought 50,000 shares of the North Springs Resources Corp (OTCBB:NSRS) stock promotion and alerted my members in chat. Normally I don’t send stocks like this out by email because they don’t often make the best swing trades, however clearly I left a big score on the table here by getting out too early in the promotion phase.
The reality is that it’s difficult trading any stock and promotions are often harder because they don’t follow the market and are often subject to manipulation making them predictable at times but much more volatile as well. For example, this 1-hour video download of Amwest Imaging (OTCBB:AMWI) illustrates how lucrative but then equally dangerous these plays can be. AMWI was up well over 100% at times on December 8th before crashing from $1.39 to $.225 in just about 1 hour and I recorded the whole thing to teach the unsuspecting and / or ignorant how to avoid and / or profit from stocks like this.
Where NSRS goes is anyone’s guess today. The declining volume could be a sign the promotion is coming to an end or simply an early phase short trap and reload. Will I trade NSRS again you ask? Well for that information you’ll need to subscribe but I can tell you one thing, it’s obvious I left over $7,000 profits on the table by jumping out too early but have always found it better to be safe then sorry with volatile stocks like this.