Thanks bdod. I believe that POTN is indeed a rare pearl in the ocean of penny stocks out there. How many other OTC or stinky pinky companies have revenues of $2M+/mo or offer products or services that you can actually purchase to try for yourself?
But even the best of the best can fail for a number of unforeseen circumstances. So because of that I would highly recommend diversifying some.
If all of your eggs are in one basket the odds of losing it all is much greater than if you owned stock of at least 10 different companies representing perhaps multiple industries.
But you have to start somewhere, so it's not practical to immediately diversify into 10 different stocks if for example all you have to invest is a thousand bucks, because broker commissions alone will eat you alive. For example, if you buy $100 worth of 10 different companies and your broker charges you $6.95 per trade, you will pay $69.50 in commissions to buy $1000 worth of stock. That represents a front end load of 6.95%. So just to break even you would need a return of over 6.95%, because you have to pay commissions again when you sell. The whole idea of investing is to make yourself rich, not your broker lol.
Personally, when I make a trade, I want it to be large enough where the $6.95 broker commission that I have to pay represents no more than 1% of the lot that I'm purchasing. So I want to buy in lots of at least $695 each.
Another way to invest with limited funds and yet remain diversified, would be to purchase a low cost mutual fund. Some mutual fund companies require a high initial investment of several thousand dollars, but will let you get in for as little as $100 if you agree to have them ACH debit your checking account $100/mo to purchase more shares with. There's a mutual fund for just about any type of investor.
Mutual funds get a bad rap though because most are actively managed so the management fees can be quite high, and after fees are taken into consideration the funds seldom beat the returns of the overall market. But there are good mutual funds too with low fees and market beating returns. You just need to do your research before you buy.
Regardless of how you choose to invest, best of luck to you!
AI
