Investing on the OTC is extremely risky, however with that same amount of risk, the rewards can be even more lucrative. Our philiosphy is very simple...
1. Start with what you can afford to lose. Lets say $500.
2. Find a solid platform for your DD, such as a proven message board on IHUB, a penny stock service (avg cost about $50/month), or a reliable source for stock tips.
3. Find a stock you like and get in at the appropriate time. Meaning, if the stock is already up 300%, don't jump in thinking it will run another 300%. Patience. This philosophy will take a lot of patience.
4. Do not hold the stock too long, but also do not assume you will double or triple your money in a few days. The longer you hold in hopes of larger profits, the more the odds are against you.
5. You should make a goal to double that initial investment in one month's time in 1-2 trades (More trades means more trading fees).
6. Don't be greedy. If the stock runs 100%, sell half the stock and get your investment money back!!! Then you can leave your freebies in and work on another play.
7. Set a limit for loss. Pick a number that is acceptable for a loss to you. For me, I always set a stop loss price of 20%. This provides enough room for the stock to dip without it selling off automatically. If a stock drops 20%, it may drop even more, so now you can buy back in and get even more shares!
8. Do not marry a stock. Do not believe the hype. Get educated about charts and know when to question "to good to be real" results. Take posts like "We're going to the mooooon!" for what they are worth... not much without a lengthy DD report attached to it.
9. When you sell a stock. Don't look back. If you made money, be happy for the profits and move onto the next one. Small profits add up quicker than you think.
10. Last but not least, if you can double your inital investment once a month, in one year you could easily handle even more plays the next year setting you up to be a Premium Penny Stock Professional!
