Fortune favors the brave.

Virgil, Aeneid Roman epic poet (70 BC - 19 BC)

One of the reason most speculators lost money is because they speculate on penny stock. It is not surprise that some of them clearly understand that why the stocks are penny is because they earn penny. They understand highly priced stocks is great investment as well. However, psychological factors are stopping them from buying highly priced stock. The human instinct who want cheap, bargain keep preventing them from investing in these market leaders. Perhaps the most distinct trouble with penny stock is not that they are earning penny (or even negative returns) for investors, the biggest trouble, which bring disasters and defeat many of the new traders is because these penny stock often create artificial breakout pattern to entice the uninformed players, to distribute the worthless stock to these unfortunate players. Most often than not, a high volume long candle breakout, which are perceived, taught, assumed, and agreed in those famous stock trading books as bullish, is just a manipulation by the insiders to distribute stocks to the suckers. And this is why most new traders, who learn theoretically on the chart patterns and breakout pivotal points, got defeated, monetarily and emotionally.

In fact, it is not the problem of the breakout rules presented by those famous "technical analysis for dummies" books, it is where and when the traders apply the rules that is the problem. It is too foolish to invest in any breakout, if we able to spot any aberration of accumulation for distribution pattern in the stock in the previous period of that particular stock (Well, that is long story to tell... serious traders should go to learn themselves on how to detect these faked pattern themselves).

To those who are brave, i repeat, only to those who are brave: Green Packet, OSK ventures and mTouche, three of the MESDAQ leaders today, presented a bullish resistance breakout pattern today (for GPACKET, a few days ago). The three companies, who are involving in wireless networking solution (leaded by GPACKET), are presenting a tandem sister stock trading opportunities for the brave investors. For this reason, i recommend a BUY on OSK Ventures and mTouche for those traders who are brave.