MC, Good post. That about sums it up. Besides being tough as nails, you also need to be armed with knowledge.
Before you buy even one share, do sufficient due diligence to avoid the 99% of companies that are not good candidates. My main mandatory item is that it has to appear to be at least a potential 10 bagger in under a year. I always look at the chart back as long as it exists, and reconcile where it is now with where it has been.
If it's been increasing, I look for why. If it has serious drops in the past, I look for why. I go through all the filings in the last year or two. I read press releases. I time them with stock actions.
When I first purchase any shares, I have a pretty good idea of where the company has been, and where it is likely to go - and why.
In the case of AMLH, I could see a defunct company that divested its assets and left most of the outstanding shares in the hands of the CEO. I saw the merger and I saw the potential of GG Media - a young, private company with what should be a bright future going public through a reverse merger into the shell of the old company.
The messy details of the old company had to be cleaned up to get the company current which is happening now.
The share structure is outsized for such a small company, and will need to be addressed in the future. That may very well require a reverse split - and I'm prepared for that. I bought 22M shares knowing I might end up with 1/4 that many, or so. Still, the whole investment is only about $60K, and I expect it to eventually return $600K, minimum.
The point is that I, and I alone, study any company that I invest in, and I don't buy hype from posters on boards, either direction. I deal only with facts. If my DD changes, I decide what action to take. I don't fall in love with any stock, and divest even with a loss if things change too much. If it drops 50% below my avg, it's gone, for example. Good bye GIGL.
If/when it hits the 10X point, I sell off 10% to recover my original investment and let the rest roll. If it continues growing, I keep it. When it looks like it plateaus, I make a decision about how much and how long to hold and sell the rest.
While all this is going on, I find another candidate and when I cash in my 10%, I use it to invest in another similar company. Not all at once - in steps. I buy some amount and watch it, and what the company does. I usually have some real cheapies to start, so it's inexpensive. I need to see the upward trajectory begin before I buy more. Hot news sometimes triggers a buy also. Hello BVTK.
This process has enabled me to at least double my portfolio value each year. That's 100% increase every year, even taking any losses into account. I make more now than I ever did working, and I had a 6 figure salary plus stock options. Not bragging, just saying there is a way to make real money, and it's not by flipping. I hold only 4 OTC stocks right now, all of which meet my criteria and all of which should see a 10X rise by the end of this year, or shortly after.
GLTA - this one should be an interesting ride this first year. (Till April 2018, one full year of business. I started buying 4/4/2017.)
