Quote:
Originally Posted by snowie963
What about penny stocks doesn’t cause you stress when they are as risky as it gets and commonly lose 50% of their value in the blink of an eye? With “big boards” what are you scared of? Maybe losing 5% on a big red day? Maybe 10% on a bad news/bad earnings or scandal? How are you so confident in these penny stocks unless you have inside info? I know when I played penny stocks I commonly got screwed on offerings or just general shadiness, pumping with news then going dark. I assume you will say I just picked bad companies? How do you pick winners you are so confident in with hundreds of these crap companies to pick from and they all are spinning a positive story.
I have been around penny stocks since I was a kid and my dad would fly in penny stock ceo's to talk to his adult ed classes at night. Traded them as young as 12 or 13.
And of course I have been around penny stock CEO's as a consultant and as a IR and promotion guy for 20 years.
I know what to look for as far as a good story, good management, good filings, good shareholder base, good products, good share structure etc. Can't really explain how I know....I just know. Just experience.
I also get sent lots of picks and plays from guys who know I can bring in buying if need be.
As for stress? I have zero stress with penny stocks. Really the ONLY thing that can cause a penny stock to drop a ton in a short amount of time is a fling for a reverse split or a raise in the authorized share count. And I avoid stocks that have those possibilities. OTC companies generally only like to put out good news plus with many penny stock companies you will find that the penny stock buyer is generally either a novice, or extremely loyal to the company. I honestly have never seen anything like it as far as faith in a company and that probably has something to do with people always wanting to believe in the fantasy that THIS ONE will be the stock that goes from pennies to dollars. And of course there have been lots of stocks that have done that.
So when I find a stock I like, I will start buying and buying and averaging down if I have to. And I never have to worry about bad earnings or the futures being down 400 points and TSLA opening the next morning down 45 points because world events and the larger markets have no effect at all on the OTC market. That means I don't have to go to sleep stressed and waking up stressed. Because 98% of the time the only news that can come out about a penny stock is GOOD news.
Example.....CTYX this spring. I started buying around .008 and bought down all the way to .005ish. If it had a small spike to .012 or so I would flip some and then rebuy those shares cheaper. But I knew the company had some major news coming very likely so all I had to do was play that game, keep loading, and wait for the news. And it hit, the license for their brain cancer drug from the National Inst of Health, and the stock went to 5 cents and I did very well. Same with RVVTF and MITI and IMUN and TVOG and PASO and MMRF so many others over the years. COUV I just made a small fortune on and that was strictly a tip from my shell agent.