| Spikes on a chart... what do they mean? |
|
|
|
|
|
Mike K
Contributing Member
Cash: $ 7.55
Posts: 37
Joined: 16 Apr 2006
Location: Doha, Qatar
|
| Spikes on a chart... what do they mean? |
 |
|
I have a few questions on charts... have a look at Gamez-N-Flix (GZFX) on bigcharts.com:
1 Year OHLC chart: http://bigcharts.marketwatch.com/intchart/frames/main.asp?symb=gzfx&time=&freq=&country=us
As you can see it spikes from about 1 cent all they way up to 15-20 cents several times. Depending on the chart style depends on whether it shows the spikes or not. For example, OHLC and Candlestick both show the spikes but Mountain and Bar charts do not.
I was home on vacation watching this stock on the 31st but don’t remember any spike. Now that I go back and look at it on a chart the spikes are there. I really don’t get it, did the price of the stock really ping that high and come back down or is there an error in some information somewhere causing the chart to shoot up?
Any info would be great.
-Mike
|
Sun Apr 16, 2006 10:15 am |
|
|
coaster
Senior Advisor
Cash: $ 1318.80
Posts: 6496
Joined: 11 Oct 2005
Location: Wisconsin
|
I can't get a chart on this stock on my EOD quote service. And I don't know how bigcharts plots prices. It could be an error, it could be an actual trade, it could be a bid. Frankly, as far as what it means.....wide swings in the price of a penny stock are meaningless.
If you contact bigcharts to find out what their charting protocol is, please let us know. I'm curious, too.
~Tim~
Eye Candy : Why Whimsy
|
|
Sun Apr 16, 2006 1:15 pm |
|
|
Mike K
Contributing Member
Cash: $ 7.55
Posts: 37
Joined: 16 Apr 2006
Location: Doha, Qatar
|
ok, just an error.
Sarah,
I have been lurking on this site for quite a while and it looks like everyone here loaths penny stocks and thats fine. After reading some of the threads on here i have gotten pretty interested in metals. But being that i am new (both to this board and to investing) would you mind sharing why somebody should avoid this stock? Anything specific you see? I am all ears.
|
|
Sun Apr 16, 2006 2:16 pm |
|
|
Mike K
Contributing Member
Cash: $ 7.55
Posts: 37
Joined: 16 Apr 2006
Location: Doha, Qatar
|
first... thanks for taking the time to break it down.
second, what is DD?
To be honest i havent had too much interest in sub-penny stocks because i had the same train of thought - they are so cheap for a reason. I found out that GZFX was partnering up with Circuit City and was waiting for the press release, that is when the stock went from 1 cent to 2 cents around the first of the month. Sold, great i just doubled my money. Got thirsty reinvested and the stock is back down to 1 cent.  so i am back where i started, ill chalk this one up under 'lesson learned'. I was hoping that the stock would move back up but i bet my money could be better invested elswhere. Like you said though, how real is anticipation.
Again, thanks for your time and look forward to reading more of your insightful posts.
|
|
Sun Apr 16, 2006 2:42 pm |
|
|
coaster
Senior Advisor
Cash: $ 1318.80
Posts: 6496
Joined: 11 Oct 2005
Location: Wisconsin
|
quote:
Originally posted by Mike K
...I was hoping that the stock would move back up ...
Mike - try to leave hope out of your investment decisions. Hope is an emotion. Emotions will cloud your judgment. Hope is the biggest reason people lose money. They stay with a stock that's going down...and down...and down...hoping it will come back so they can sell at break-even. But think of all the other investors in that stock also hoping to sell when their loss is reduced. Obviously the chances of getting their money back is poor.
DD = "due diligence" ie - do your research. 
~Tim~
Eye Candy : Why Whimsy
|
|
Sun Apr 16, 2006 3:11 pm |
|
|
Mike K
Contributing Member
Cash: $ 7.55
Posts: 37
Joined: 16 Apr 2006
Location: Doha, Qatar
|
quote:
Originally posted by coaster
Mike - try to leave hope out of your investment decisions.
I know... i know....  again, it was a valuable lesson and i didnt loose any money.
quote:
DD = "due diligence" ie - do your research.
ahhh.... ok.
|
|
Sun Apr 16, 2006 3:23 pm |
|
|
|
