The typical (Penny Stock Investor) PSI is a lone wolf. He hunts alone, and is forced to survive on his own… (and is sometimes pushed to defend his dignity from the wife critiquing over his shoulder).
With the invention of the internet, a new battlefield dynamic has emerged to the aid and woe of the investor. Internet forums have become a modern phenomenon as a channel of interlocution between PSI’s. Suddenly the PSI is thrown into a social world, allowed to operate amongst like-minded lone wolves in a pack mentality. He becomes a soldier for a common cause, but trapped behind the necessary cliché of “always looking out for number one.”
Knowing who to trust is the key to a successful team. But in this world, there is never a means of truly knowing who to trust. Ultimately, it comes down to a weeding process of skimming the more loyal and dependable from the selfish, opinionated, and non-contributing majority.
Suggestions to effective weeding:
1) Ignore all company bashers – Even if they’re right about the company, a person who takes a negative stance against the company will never add to the insight that another person you can trust or yourself could easily contribute.
2) Take note of people who take time to write their entries – A person committed to knowing more about the company will often take time to write longer entries in order to be heard (this is not to say ignore those who don’t).
3) Take note of people who actively research – Has this person made a call that others hadn’t? Has this person taken a search a step farther than you? Watch the actions of these people.
4) Cautiously ignore people who overreact and/or flip stances – People who allow their sentiment to get the best of them will often be more dangerous to the cause in the long-run than they will be useful. Be careful with such people, but mindful of their good input.
5) Throw a bone – When possible, single out those you’ve been watching & privately throw them a bone to see if you can establish a closer network.
Some Popular Internet Forums dedicated to Penny Stocks:
InvestorsHub (Personally, this is the only forum I find to be the most useful.)
Silicon Investor
Raging Bull
Hot Stock Market
2 comments:
Excellent write-up. Penny stock investment isn't the wild west it used to be, but it's good to see that some resources are available if I ever wanted to dip my hand in the cookie jar again.
Nice Blog. Keep posting more
Regards
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