The Good Poker Player

The odds are good that you are a poker player.

The fact that you are investing on these lower exchanges of the Pink Sheets & OTC:BB fully express that you are likely to be a risk taker - *shakes fist* you have cojones ! Good for you, I say.... and good for your cojones! Only those willing to take the unlikely chances when others will not bear the hope of gaining lucrative returns on their investments.

But as every good poker player knows, you just can't play every single hand that comes your way. However tempting it may be (because no press release campaign will ever put the company in a negative light), carelessly throwing money down on speculative stock plays within an already highly speculative game is just not smart. The intelligent Penny Stock Investor (PSI) always has a goal & a good read of the current situation. The intelligent PSI always knows his outs, the forms of company progress that can translate into favorable & tangible results. The intelligent PSI also knows how to fold when that end goal becomes fuzzy.


Example BAD hands/stock plays (which represent your reason for investing):

1) Company X has just infiltrated a multi-dollar industry that is expected to grow exponentially
2) Company Y has started researching a new technology that could revolutionize the industry -- (remember development time scales, development costs, & the fact that it actually won't be nearly as effective as planned)
3) Company Z has increased its net revenue several hundred percent over the last year! [even though net income remains negative or slightly moved] -- (this could be ok, but often this is just a facade that expresses a stagnant business, and nothing stagnant company-wise stays afloat share-price-wise)


Example GOOD hands/stock plays:

1) Company X has just announced a specific & sizable allocation of funds for a buyback of the company stock -- (however, be skeptical if the company just began)
2) Company Y has doubled its manufacturing capability to meet growing demand
3) Company Z has just closed a contract with a Fortune 100 company worth $x million -- (specific amounts & external confirmations from reliable sources are very hard to find down here)