I have noticed that many people on this message board follow and buy OTC stocks.
In general this is not a good idea.
The reason: stocks that aren't listed on a major exchange can be manipulated, however, it is much harder for distribution to take place. This is not to say that OTC stocks that have TW formations will not rise, however, they are much more speculative. One of the nice things about the TW method is its conservative approach, while not giving up great profit potential.
Regarding stocks that are delisted from a major exchange, and now listed on OTC. Do not immediately sell, however, the chances of a great rise from OTC will be less, and if it does happen, it will be a while.
DOTX is a good example of an listed stock that now is on OTC. It had a TW formation.
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The otc market is not a minor market. The otc bulletin board is another story, but to find truly good TW formations, you have to look at stocks with small market capitalization. Good luck finding a lot of these small companies on the NYSE which regulates market cap much more harshly than the otc. I would rather not limit myself to one major exchange with ample liquidity.
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Hello Adam,Alot of what you are saying is correct.But i also find the if we really study the TW entry pt. we do not have to wait years for the rise.I wouldn't want to lock up my money for years and get no return.There are numerous excellent buys OTC.It does take a watchfull eye to pick these stocks.Last March a friend of mine had been loading up on a stock called EXTI{since the previous Sept]He sold and made 140,000 dollars in ten mos.Now he has 350,000 shares of MVEE and thinks it will go to .50.He makes his money on OTC stocks that are TW AND ON GOOD NEWS.He says the public will buy anything.Its just a method.I do believe we should have a sound portfolio and some play money.Oh, by the way,EXTI was totally manipulated.There was massive distribution.Remember what TW said! WE need to know whos hands a stock is in.I have read some of your posts and you seem to be heading in the right direction. Keep up the studies.
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