good post from GOIG board regarding trading pennies
Posted by: luckydude777 Date: Saturday, April 17, 2010 6:45:07 PM
In reply to: Bopper155 who wrote msg# 44717 Post # of 44944
Bopper: Wonderful post!
I'll pass along a little advice to you that may help you down the road.
If you're relatively new to pennystocks ... what time you have to devote to it, PAPER TRADE/INVEST them (all the while you're holding GOIG, of course).
Paper trade just a few pennystocks at a time that you THINK might have potential. (Once you watch a given pennystock long enough, you'll often begin to get a PULSE for what the CEO/Company AND probably more importantly, what OTHER investors are going to do. CEO's tend to be predictable in pennystocks, if you watch them long enough. What other investors decide to do about the stock becomes more difficult to know, because there are groups and group-EES working together to frontload these cheap pennies operating 24-7).
As you begin to get a sensible "FEEL" for a good pennystock, you can buy and sell them by programing your computer, which takes a great deal of EMOTION out of it all. Inexperienced penny players almost ALWAYS loose more money than they make trading BECAUSE they spend too much time reading the stock message boards and taking posts at "Face Value", and NOT enough time learning to discern how the vultures are trying to scam the gullible virgins.
Case in point. How MANY longs in GOIG didn't feel like crap by Friday evening, if they took the time to read all the negative posts on this board the last few days? Bashers KNOW their bashing will get to some people. Hopefully a LOT of people. It's EASY to bash a stock when you KNOW the Market Makers are NOT ready to let a stock run again, which Market Makers this last week after the selloff were prone to do: NOT let it run YET for awhile again like they they did up to $.06.
Sophisticated bashers have been hired to keep a lid on GOIG right now, because institutional players are starting to come on board, and Market Makers are loading their trucks with cheap shares as well, knowing full well what YOU stated about Zerox and Kodak.
There are just too many positives to talk oneself out of NOT looking at GOIG as another potential Zerox or Kodak as this stage of GOIG's metamorphis, but the bashers would like to change your thinking on that possibility. Again, WHY? Because WHO in their right mind wants to pay $.06 a share for GOIG when they can get it for $.02, or LOWER, if enough momentum could swing that way?
But back to trading pennies verses buy and holding. GOIG is one rare pennystock in pennyland. You and I may NEVER stumble across another pennystock like GOIG. Most pennies are 99% dilution entities, and little else. They exist to sell shares. Their business plan sounds GREAT in a PR ... but so doesn't the business plans of thousands and thousands of other people trying to get a private business off the ground these days, but end up not succeeding.
In pennyland, as a CEO, you have a GUARANTEED SUCCESSFUL BUSINESS if you have a good enough line of bullchit to attract enough trading sharpies who know a good thing when they see it. In pennyland here, you have a LOT of sharpies who know how to take a worthless stock and make it look like it's going to turn to GOLD, and the scamming CEO's of these companies are the sharpest of the lot. Yeah - "gold" to THEM once they've unloaded their millions of shares bought/issued dirt cheap/free, and dumped on young, inexperienced buyers on every run ... not having a clue that successful BullChit in print (as in PR's) is the ONLY business model you truly have to have to be a FINANCIAL SUCCESS in pinkyland.
By watching these pennystocks over the years, I know perfectly how to play the same game as most CEO's play in pennyland. I would have no problem doing the Nevada paperwork to be legal to sell pinksheet shares. I would have no problem filing the form to obtain a Market Maker to handle my stock. I would have no problem spending hours and hours writing BOGUS PR's that sound like I'm the next CEO to oversee Google.
Yet my conscience wouldn't let me do it, because I believe I'll stand before God some day and give an account for my actions, but the point IS: If you want to learn how to make money in pennystocks, you have to begin to THINK like a lying pennystock CEO, a conniving - greedy Market Maker, and are you ready for THIS? A roadkill scumbag BASHER!
When you begin to feel the GREEDY PULSE of these THREE vulture personalities ... you'll begin to make more money in pennies than you loose, whether you play them part time, full time, or sometime in between.
When you're old and either greyer or bald/er ... you'll have time to TRADE pennies, if that is what you want to do. Learn the game CHEAPLY while you're bringing home a paycheck, and it will pay much bigger dividends down the road when emotions don't RULE your decisions.
The KEY to successful investing/trading is to NEVER let your emotions rule you. Let WISDOM rule your thinking. It takes YEARS for some traders - investors - to learn this discipline of discovering HOW their emotions promped their decisions and it cost them money and brought on a LOT of emotional pain.
The longer you READ these stock message boards, the wiser you will become in WHOSE post/s you read, and WHOSE posts you believe, and WHOSE posts you don't either read and/or trust/believe.
It's kind of like politicians. You NEVER believe what they say. You try to figure out how they are lying to you, and THEN take things from there.
If what they SAY ends up coming to be TRUE ... they'll go to sleep at night just as STUNNED as YOU will be!
