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Twitter Groups and UITA

UITA kept popping up on twitter, I was watching it for a few days before I finally bought some.  I was trading away, following every different system I could find.  Trading one system for the next and looking for the next hot tip and pattern.  I bought just 250K shares at $0.011 for $2,700, I told myself I was limiting risk by trading small.

The following week I was up about $1,000, that’s better than 30% in a week, cash it out, take the money and run!  That’s what I was about to do, but that would be a much shorter story.  I was invited into a twitter group to trade that ticker.  I checked through and it was perfectly legal to trade as a group so long as there was no “inside information” all the info that was being shared was readily available in the public domain.  So I joined and read the press releases and filings.  I figured someone must have done their homework to find this much info.  I got it from strangers on the internet, of course, it was true!

The Influence

The stock was going to rise easily 400-500% they said, likely more, they were all in for the long haul.  I picked up another 20k share to be conservative, $275 isn’t much.  Just building a position, and helping the stock move by “slapping the ask.”

I waited a few more days as the price began to dip.  What an opportunity!! Who would’ve ever thought this would get back close to $0.01 again, this was it “loading time” get all the UITA shares you can at this price because we all see where it was, we can all imagine where it can go.  I more than doubled down, picking up another 500K shares for $5,500 more, I was averaging down, in for $8,200 of my $22,000 bankroll.  Here are public postings, you can read what people were saying.

The Fade

A few days later, the price fell further, people stopped telling me how great UITA was, my investment was suddenly cut in half.  I was told to “Slap the ask” this kept the price looking better because of the wide spread we wanted to keep it on the higher number after someone sold.  So a few quick slaps for 10K or 20K shares for $50-100 each is not too bad to help your investment along.

Somehow it kept fading and I was searching for anyone to tell me I was doing the right thing.  I found a profitable penny stock trader who said this could be the bottom, I’m buying!  I followed his lead and bought 200k more for $3,300.  My other trading has been suffering too so my bankroll was falling.  All said I was suddenly in for $12,000 and holding 1.5 million shares as the price continued lower.  I couldn’t sell for a loss now so I held.

That was May and the beginning of June 2018.  In July it was worth $1,200.  In December it finally actually bottomed out at $0.0005, my investment being worth only $750 from the more the $12K I put in.  My bankroll near $8K, I was essentially starting over.  I had lost any chance of being on the other side of the PDT.

Cashing Out

At the end of January, something changed, there was buying again!! Good thing because I needed the cash, I was nearly broke.  I quick sold 500K shares around $0.004.  There was a filing everyone was talking about, new management, a new direction the company will be revived!  The twitter group came back to life!  I added new members and promoted it as much as possible.  This time was indeed different, I knew no matter what I had to sell everything I had.

I set limit sell orders at a few different spots so I would get bought up as the price approached $0.01.  But only 100K more got bought.  I slapped the ask again and bragged about it to the group, trying to get more to follow my lead.  Still holding 1 million shares, I wanted to cut that in half.  It peaked at $0.063 and the price began to fall.

The Investigation of UITA

I decided I couldn’t trust these people so I did my own research.  Searching names, phone numbers, reading old filing I was trying to connect the dots.  The company was an airplane manufacturing with a design for a cheap cargo plane for short trips in China.  There was even an engine manufacturer listed with the engine model.  I found the manufacturer and press release about that engine model mentioned, with a phone number at the bottom of the press release.  I called it.

To my surprise, a nice lady picked up the phone!  I told her I was conducting independent research and asked her to verify some public comments.  She politely informed me it was a Friday Afternoon and the east coast of Canada was shutting down.  She gave me her email and ask I send her the details.  I did with links and quotes in the email.  Monday morning I received a response from someone higher up the food chain; he gave no direct answer but a name and phone number.

One phone call led to another, I had seen this name and number in my research too.  It was time to call.  Once again someone picked up, the CEO of UITA!!  I was a little shocked but continued with the truth, I was researching on behalf of stockholders (myself included).  He asked me for the names of those shareholders, I politely declined.  I asked if UITA was producing anything he told me the filing from the past year were all false.  I dropped a name from the most recent filing. He said he needed to call that guy right away and hung up.

Bailing Out

Worried, I sold another 500k shares for $0.002, now down to my last 500k shares.  I waited another day and called the CEO back.  I asked what he talked to the other guy about, he said the other guy had no idea about it and didn’t have anything to do with the filing, it was all false.  A few hours later that twitter group and buying exploded!! Another filing, the CEO I talked to retook control of the company!  Steve Jobs has come back to Apple!!!

As excitement grew I sold my remaining shares in the $0.005 range.  I cashed out about $4,300 from the $12,000+ I originally put in.  Going back in the group I shared my story about the engine manufacturer and talk with the CEO.  I left the group.  From here on out I will only trade my own game.

The market decides the tuition you pay.  This was an expensive lesson, but I have created another rule, no stocks under $1.  People can manipulate the system too cheaply.  You see when several million shares are only a few thousand dollars you only need a few thousand dollars to stimulate buying.

I hope this helps and I hope this never happens to you.

If you want to know more about my trading and how I stopped losing money, check out my home page.  There is lots of free resources and information.

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