Tuesday, July 17, 2007

Introduction

The way to make good money in trading stocks is not by following the crowd. I believe it is only fair to say that Warren Buffet himself would not have been as successful as he is today had that been the case. Nevertheless, investing in companies that are on the upper exchanges (NYSE, NASDAQ, AMEX, etc) already coerces the individual into a marginalized situation, in which he must choose between one established company and another, both which have long since been known & by the masses. Opportunities in these markets are scarce and significant gains are compromised.

Alternatively, there are the PENNY STOCKS. Here we typically find considerably newer companies, most of them unknown to the average investor. Many of these companies have gone public via reverse merger of former bankrupt shell companies. In theory, these are the companies that have the potential to offer the greatest return to the ambitious investor.

However, this is where the fantasy ends and reality begins. The OTC:BB and the PINK SHEETS are no place for the amateur penny stock investor. In a land where corruption is rampant, press releases are propaganda, and dilution is prolific, greed leads to lies and financial portfolios gravitate to the bedrock bottom. In this realm, the investor is thrown into the Wild West as just another gold-miner condemned to network amongst the worst of people for privileged information. It is dangerous. The stakes are always high, yet the rewards could be worth a lifetime.

My blog is built around the experience I have learned (and daily continue to learn) to survive the life of a Penny Stock Investor. I come in with the belief that there are legitimately undervalued public companies that inevitably will one day be recognized and accepted to the larger investment community. I welcome one and all, who realize the dangers present, to join in this adventure with me.

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