more Otto.... https://incakolanews.blogspot.com/2018/03/on-payday-loans-tinka-resources-tkv-and.html
However, anyone who employs an expert (qualified, self-styled or whatever) to advise them in investment should expect far more financial nous than that showed by Matt Badiali in the episode surrounding Tinka Resources (TK.v) on Friday. I was dumbfounded and to highlight the abject stupidity on show:
1) If you have a large subscriber base of “non-sophisticated investors” (
1)
2) Who buy into a company like TK.v
3) And you have a strict policy of calling sell if a 20% trailing stop is triggered
4) Do you think the sharks of Vancouver might find out? And when they do, maybe drag down stock prices of vulnerable issues to your trigger?
5) At which point you execute on your “strict rule” and your non-sophisticated followers all do the same thing at the same time, sending (in the case of TK) around half a million shares of at-market sale orders into a bid that doesn’t have a chance of handling that type of sudden influx.
6) And the Vancouverites who have spotted this dumbest of dumb money up for grabs suck up the shares, flip short positions into longs which then rise back on the inevitable relief rally rebound.
The result? Badiali claims a minor loss, thousands of retail sheep wonder where their money has gone, a handful of people on Howe St have the answer (but will never tell them). Applying discipline to investing is fine, announcing to the world that a whole bunch of dumb money is being directed by a strict rule that is easily taken advantage of by a voracious and notoriously dog-eat-dog market is a one-way ticket to permanent losses. Since I heard about this sell call and exactly why I’ve been dumbfounded by the financial navet on show, as either Badiali is running his list under a more nefarious double agenda or he’s a supposed experienced financial professional making the type of mistake a rookie would only make once at most (likely never). The stupidity on show here is on the same level as my payday loan friends, but considering its source is unforgivable. For the rest of us, it’s an invitation to free money.