Hello Pal, another Chino TikTok Spyware?

We remember this announcement?

VANCOUVER, BC, Feb. 24, 2021 /CNW/ -- Hello Pal International Inc. ("Hello Pal" or the "Company") (CSE:HP) ( Frankfurt: 27H) (OTC:HLLPF), a provider of rapidly growing international live-streaming, social messaging and language learning mobile apps, is pleased to announce the commencement of marketing operations for its livestreaming services in the Middle East market, with a focus on the United Arab Emirates, Saudi Arabia, Egypt and Bahrain.

Hello Pal International Inc. logo (PRNewsfoto/Hello Pal International Inc.)

After having consistently achieved monthly revenues of over CAD 2 million over the past several months, and following the arrival earlier last year of industry veteran Vincent Chai as Senior Vice President of Operations, the Company has started to focus on expanding its revenue sources to markets other than the China livestreaming market.

The Company has already begun to work with several key partners to begin this expansion, including those with an established network of livestreaming hosts in the Middle East countries such as the United Arab Emirates, Saudi Arabia, Egypt and Bahrain. Such partners will help bring in a diverse community of livestreaming hosts and provide livestream content on Hello Pal that caters to the Arabic-speaking world.

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Then I went in on February 25th at 0.78. This is what I posted then. Daily candles. The stock stayed flat through the rest of the week. Then Monday and Tuesday it went up big time and people came flying in and also jumped onto the flying train. I was in a good mood counting my monies. The stock was playing well. My position doubled now. Great I thought. So I bought more on Tuesday the 2nd of March and moved the SL up to make a profit even if it all collapses. You never know.

My Break Even Point, BE, moved from 0.78 to 0.92. HP run at 1.30!

Here the details in the 15 min charts.

On March the 4th I was paralyzed in front of the screen. HP went up from the beginning. It drew a huge candle in 15 minutes. I remember texting my wife with updates. You know "The Great Candle", the Candle Goddess is appearing to me. Every 5 seconds $100 in my wallet! When I was finished typing the price went up. I was glued to the screen and couldnt believe it!

This went on for 15 minutes until it topped out. I still made about 100% on this trade. You take what the market gives you and you try to put all odds into your favor.

Why was the third BUY a mistake?

All the Dumb Money was flying in and buying the stock. They were buying from traders that were selling. Then the once that were in longer also started selling. But the more people buying and the orders are lined up the price goes up. Now Yahoo News was read by a lot and the crowed was moving in but was late to the party. When the Sellers, Bears take over the stock loses on value since more people start selling than buying, hence the price is falling. This happened after 20 minutes into the trading day.

With a steep Candle like this one after quite some huge gain before days you know this cannot go on for ever. So you dont buy into the same scheme as the others. The third buy in was wrong for that reason and reduced the profit!

What could have been done differently?

If you get a candle like this and there is NO obvious NEWS for it or even just hype news you do not BUY you SELL, you short the stock when the momentum retracts. This is a pretty safe bet. Sell on the top at the 78.6% Fibonacci Level and buy back on the 50% Level or do a trailing Stop Loss and go further until you get stopped out. Mostly at the 23.6% Level and the Stock might consolidate and finds new support. This will be then the new price level traders willing to pay. Simple. Doing this instead of staring at the screen like a rabbit on the road could have made myself a profit of 120%. Well, next time guys.

Now it is time to re-evaluate the Stock for holding it for 3 months or so. Is it worth it? What are the numbers saying?