2) Talking more on huge contrast between Indian market and US market--
There are various reasons why a certain class, though seems big enough, as I see almost every penny stock is hammered as soon as some equity offering news comes out...or someone like Dir or CEO sold a chunk of shares....Even though they sold for Tax purpose, that doesn't matter.
These players are like, just waiting for the negative news and they pounce on it to hammer.
The first reason according to me is, Promoters in USA has very very Low Stake when they come out with IPO.
It is not like in India, that promoters of even penny stock has also 50 to70% stake...that makes liquidity already high...
and then they comes out with Offering of shares , so more liquidity to hammer.
In USA, promoters holds barely 5-10% stake when IPO comes.
2nd thing is, there is NAKED selling in US market. Anyone can do , I think. It is legal. They don't need shares to short sell. They don't need to borrow. Players can hammer any stock, without delivery in Hand. That is one of the biggest reason. I can be wrong here.
3rd is, the FV is already very small.....like 0.0001 FV, now at that FV, there will be huge liquidity.
Just imagine, we have FV10 most probably in all stock, rare we see FV5,FV2 or FV1....and in US market, the FV is 0.0001!!
This is what I understand and I can be wrong . So read and learn by yourself and then dive into US market!!
Loss is a very bad thing. It make coolest and most dependable person lose Cool and start abusing me.
Untill stock is up, no problem, but as soon as it goes down, all hell breaks loose.
Hence , now I have almost stopped talking on stocks, I not even repost my old stocks which are making ATH and hence making Multiyear Breakout....
They are doing great with ATH from my old picks and new picks which I discuss at someother place, at Slice.