Thread by @billsstocks1

A THREAD ON THE STATE OF THE #OTC #Stocks #pennystocks

Before I elaborate more, I would like to thank @KentsBrokerage, @SaraGoingUp, and @MastInvestments for their insights over the past few months. It's easy to get discouraged during times like these, but it's also easy to get

cocky during times like February 2021. Let's go back to March 2020 when the pandemic started. Lots of money was made (or even lost) trading puts (and later calls). After accounts build up, newly crowned whales want to find more avenues to grow their account. At that time, OTC

stocks were a bargain, and there were many more to choose from. This included stop sign tickers, SEC delinquent tickers, and the dreaded skull and crossbones (CE). The SEC was actively suspending inactive stocks. Yet the money made from options found its way into the OTC. Many

doubted such stocks, but those who bought the fear compounded their wealth. And those who stuck with ONLY options when the market cooled down ended up with worthless contracts. And you bet there was a lot of emotion. I was in an options channel when it was hot, but suddenly it

channel drifted into the guy making TikTok videos since he lost his money. In the meantime, I had $600 and bought VISM. I didn't sell when I should have but still turned it to $1500. I then compounded it on PAOG and made it nearly $6000. Eventually I took my account to six

figures and used it to make home improvements my wife has wanted. Many hid similar or even better stories. Now fast forward to today. People have studied up on trading and have become more seasoned on options. People are still working from home and able to swing trade without it

affecting their work performance. The past few weeks have been volatile, and many traders who also trade OTC have been killing it in options. And I'm sure in the very near future, many of these whales will be taking advantage of how cheap some OTC stocks are. As John Kent warned

us this past summer, the number of OTC tickers available has been drastically reduced. And the tickers for the most part are more legit than what we had in 2020 and early 2021. Yes there are some highly dilutive tickers, but the ones that currently don't dilute and the ones that

do it minimally to grow the company organically have MASSIVE potential. Combine the market conditions with the newly crowned whales from options trading and you have a lot of upside potential in OTC stocks.

Now let's add psychology to the mix. Many wanted to reduce their tax

burden for 2021 so they tax sold stuff to generate cash and reduce income. That along with Delarge going to jail and Schwab beginning to charge commission created an unreal fear that many seemed to not let go of. In 2022, there is no reason to be selling oversold OTC, only

overbought ones and scams to realize profit. Many furus are trying to scare newer traders into selling to them so they can pump it and sell it back to the newer traders at a higher price. This is the game they play so don't fall for it! However, many high follower accounts are

truly trying to help. Sara, Brian Banks, John Kent, Shawn, and MN are a few. Sara in particular has had the last laugh on what many called "bags". And in the midst of the negativity on #Fintwit, here are some things not being noticed.

1) Tax loss season is over. Why would anyone

want to reduce their tax burden in January?

2) The limit you can claim on tax losses is $3000. And I don't see Biden changing that. An old school Dem might, but not the current administration. You can carry over tax losses but only for 7 years. Maybe in 2008, they should have

increased the tax loss deduction instead of passing out stimulus checks.

3) The Wash Sale Rule - Starting at the end of this month, all tax loss sellers from last year will be exempt and will be able to rebuy the securities they had conviction on. Don't do it the opposite way by

taking a loss and chasing. You'll see the ugly W (which doesn't stand for win) and not be able to deduct the loss.

4) Watch Level 2. You'll see big bids on many of these stocks, especially Frank tickers. But delusional morons will whack when the company is in fact not selling.

5) Those doing DD understand the catalyst and that they have a diamond in the rough while others are chasing flavor of the day and losing money.

6) It sometimes takes one stock run to trigger many others. TSNP/HMBL was an example.

7) Emotions are negative but can change in the

blink of an eye. Nobody thought stuff would go down in February, but smart people sold into strength. The inverse holds true.

So do yourself a favor and stay positive. Put money into quality tickers with solid DD and a healthy share structure. If some of these hyperbloated

tickers got less attention, and the attention was diverted to a good company that hasn't received an at bat, we could have 5-10 healthy runs in lieu of a ton of volume being thrown at a bloated scam. Remember, there are fewer symbols and those buying the fear will have upside. As

I have always said calling bottoms/tops is luck and buying weakness/doing research/selling strength is skill. So keep your hopes up and know what is truly going on. We saw the money flow from killer options profits to epic OTC runs and with fewer OTC tickers to trade, the

possibilities are endless. It happened in 2020 after options mania, and conditions are favorable for it to happen again. So don't be fooled thinking your play with catalysts is a bag and don't sell to the con artists! Let's have a GREAT 2022!