Great Posts By Smart Investors

[$hellKing]

From Hdogtx's PennyBuster Board

Rules of the Road for the OTCBB & Pinks:

1). Greed kills, and pigs get slaughtered.

Greed is unrecognizable until 'after the fact', which is usually too late. It generally comes in the form of buying too much, too soon, and especially, of only one stock. This is why diverification is so valuable. It prevents you from taking too much loss in any one issue, in the event your choice becomes ugly. Diversification also benefits you by 'adding to the excitement' of stock investing/trading.

One advised way to avoid the trappings of greed is to practice moderation. When you see an stock you like, only buy a 'starter' position. This will automatically cause you to research deeper. If you continue to like what you learn, add to your position accordingly. Moderation is key.

2). Seldom is anything as it appears.
If everything were as it appears, EVERYONE would make money in the stock market! Unfortunately......NOT!
The old saying is, "The truth always hurts", which is why finding it in the stock market, is so hard to do. Few companies could survive if 100% of the truth were known.

3). If it sounds too good to be true, it usually is.
The better it 'sounds', the more likely you will lose money. The only times it will come even close to being 'too good to be true' is when you have stumbled across a hidden gem that virtually almost no one else has, and this would be because the market's attention has drifted away from that sector/industry, causing the stock to get 'beaten down' from loss/lack of interest. Never buy on what 'sounds' good, buy only what can be proven to be good, and yes, there are many excellent hidden gems, just waiting to be rediscovered and have life breathed back into them.

Ask questions if you are not sure.

Though no one can 'hold your hand' thru all your investments, many are willing to help 'walk you thru them', atleast to some extent. Ever since a boy, after getting a boot up my butt, I learned it is better to ask a stupid question, than to make a stupid mistake! The one might cost a little pride, while the other can cost thousands of $$. Let pride go before destruction.


and 5). A profit NOT gained, hurts less than losses SUSTAINED!