INVESTING 101: TIP #1 (INVESTING IN PENNY STOCKS DD)
Over the next few days/weeks I am going to post some simple, yet very important suggestions for investors/traders to keep in mind relative to finding and investing in penny stocks. These are not the be all end all, but from my experience, important suggestions to keep in mind before committing any money to penny stocks. I have talked about these things before on previous boards, and this is just my humble suggestion.
Having others do your DD for you is UNACCEPTABLE and a recipe for financial ruin. Anything posted on this forum should be considered a strong suggestion at best, and at worst the ramblings of a lunatic. Would you trust your kids with a stranger? Why people are willing to commit to large financial transactions on the speculation of people they have never met, conversed with or for that matter know anything else about, is mind blowing. Before anyone can say well isn't that the point of I-HUB and all of this, to a degree, yes AND no. There are people who, when EARNED, should garner modicums of respect and trust, predicated on PROVEN TRACK records. If someone screwed you once, fair to say they will do it again and again. All of us are wrong at some point, if you ask my wife, I am personally wrong all the time, but I digress. The difference between when someone gets it wrong, versus if they had a hand in the situation is posting accountability. I have been wrong, very wrong, on some calls, whereupon myself and my family and friends and to a greater extent this forum, were caught up in a maelstrom. I answer to GOD alone, but am beholden by the overwhelming compulsion to try and impart experiences and lessons learned through trial and error to those that read my posts and REALLY want to make a go of this investing thing. It is to them I speak.
Getting it wrong:
It will happen. No one can be right all the time. But when evaluating who to trust on this forum and other social media forums, consider the last few calls they made prior to the one you are considering. How right were they? Were they telling you to buy at .000's or at .01 penny, or at .10 cents? What did the stock do, relative to their respective calls? When the stock turned backwards did they go radio silent, only to appear somewhere else? I want to make a clear distinction between not posting negative things on a stock versus going radio silent. I have made it a stalwart of my investing/trading philosophy to not bash, publicly, stocks. It is unproductive, since I do not short individual stocks, it is also not profitable. In addition, it also creates bad karma. If someone were to bash a stock, makes you wonder how many people they are trying to negatively influence on your back, if you are long. What I personally loathe more than anything is the cheerleader in the morning that becomes the basher in the afternoon, because they sold and now want to buy back cheaper. Disgusting. I do not post my sells, ever. This is done for the reason I just articulated, and also because I do not need to make every single tick out of every single ticker. I never rear mirror view my selling decisions and fervently admit that I am much better at picking stock bottoms than tops. As long as I buy at X and sell at Y, it does not have to be Z. The person who buys my shares sees value in them and is making the same decision I made from the person who sold me their shares and so forth ad infinitum. I hope they make money, I really do, more to re-invest in and keep this well oiled machine we refer to as the OTC markets going. But, when you are wrong and have a strong following, admit it. There are some that will never let it go and curse you forever. That, I have found is the exception though. People just want a shot, someone with honesty and sincerity that will tell them like it is, NO BS, no pumping, no false information, etc.. Be honest with people and they will forgive your mistakes and reward you for being honest. Reverse engineer your mistakes and vow to correct them, BUT BE HONEST WITH PEOPLE.
Getting it Right:
Humility is one of the greatest attributes to have. While our country and the world for that matter has been roiled by the pandemic and its' effects on the economy and people's lives, the OTC markets are rolling like I have never seen. A blessing for some, and a horrible, life-changing curse for others, that have lost loved ones, their jobs, houses and such. It remains to be seen how long these gains will continue for in the OTC, but regardless, many are getting left behind and we need to keep them in our mind and prayers. Getting it right feels just like the grand slam homer you hit to win the Little League playoffs, or your first love or car. Celebrations aside, being right and humble at the same time will keep one focused and directed in the right direction. The market is always looking for a way to take you down.
Recidivism in the stock market is defined by the ratio of right to wrong calls someone makes. This is where you, who are reading this, need to step up. When you find someone that defines the preceding criteria, then, start to consider what they say and constantly continue to evaluate them.
Performing your own DD:
Like anything else in life, laziness is rewarded with medical maladies that can end your life due to a series of poor dietary and personal fitness decisions that lead up to heart attacks, strokes, diabetes, etc. Financial health is also determined in very much the same matter. Poor decisions by not learning, trying to learn, or take some type of personal accountability for financial decisions is a recipe for heart ache and calamity. In that regard, you the reader, are a contributing factor and by all accounts, at least 51% responsible for the results. Remember what I said in the prior paragraphs, FIND SOMEONE WHO HAS, THROUGH PRIOR POSTINGS/CALLS, MERITED YOUR ATTENTION. Notice I did not say trust. Trust is something that is earned, developed and continually re-enforced. It should not be given easily, but should be taken back when empirical evidence and common sense dictate so. With that in mind, you should approach every day as a learning opportunity. When I decided back in 2000 to embark upon learning this stock market thing, I went to the local Barnes and Noble and purchased three books to teach it to myself. I proceeded to read all three books in two weeks and where, I am admittedly blessed with a photographic memory, I can absorb large parcels of information and retain it, the work was nonetheless long and protracted. Whether it takes someone two weeks, two months, is of little consequence to the situation. The old adage, give a fish to someone feed them for a day, teach someone how to fish and feed them for life. Same concept. Take the time to learn this stuff, it is so important. Don't be lazy. Take an active role in your financial well being, your family is probably counting on you. No excuses. Best part is, things have evolved technically speaking, whereas I had to buy hard copies of these books, now everything is a finger tip away from you. No excuses.
The most important part:
Learning starts with a proper mindset to accept that you/we can always improve ourselves in every aspect of life. Many of the personal freedoms we enjoy today are a direct result of actions taken decades ago. Start today with teaching yourself this stock trading thing. Start small, trust no one but yourself, until someone proves otherwise. Expect honesty from all, or dismiss them quickly and spend no more time thinking about it. There are so many things that go into picking stocks, momentum, volume, price action, volatility, catalysts and so forth. For those of us that have been around the block a few times, it becomes somewhat trite, but quintessential to the paradigm of success. There are many online tutorials available on this forum and others as well. Seek them out, become voracious in your reading and knowledge. Then, when you feel you know it all, let the market knock you down. Success is not defined by how many times you get knocked down, but how many times you get right back up. The true testament of someone's character can be defined by staring at the abyss and vowing to never see it again.
Embarking upon benefiting yourself through education and knowledge is a worthwhile endeavor in any aspect of human development for sure. But if you have taken the time to read through this entire, rather admittedly verbose post, then you have undoubtedly taken the first steps toward financial freedom and learning this craft. Congrats. Just know this, unlike the first time you ever rode a bike and fell down, there may be no one standing next to you to help you back up. But for the time being, I will endeavor to assist all who truly seek and am humbled by the opportunity to do so going forward. This whole thing is worth nothing, if others cannot benefit from these experiences. All the money in the world is worthless if some good is not done with it.
WORKING TOGETHER WE ALL WIN.
Most respectfully,
SPORTYNORTY
