The Concept of Time

Whereas the stock market is fast-paced, the Penny Stock market is even more fast-paced. Less volume, smaller point levels, and more investing individuals (compared to large companies with influential capital) all contribute to the quick, volatile environment associated with the lower exchanges. Where a situation can change in hours over the upper exchanges, a parallel situation can drastically change on the Penny Stock market within minutes of an important press release. Nevertheless, it is important to not fall into the mold of a fast-paced day trader. You are not that good.

I use the term “day-trading” liberally, because to every person it means something else. Investors who conduct several trades a day will assume this identity just as much as the person who executes a few trades a week. Bear in mind that day-trading typically fails by the rule of probability (the same rule that controls how many times flipping a quarter will give you heads or tails). Its foundation is weak because it’s based upon sentiment rather than actual tangible company progress. What typically results to the investor is a bleeding through commission charges that ultimately has a person licking his wounds or standing meagerly ahead of where he started (except with a longer tax filing).

Penny stock investing should entail a rational degree of sensible patience. It should not have you trading tens to hundreds of companies, although it should have you researching just as many. Penny stock investing is about finding the hidden gems existent on the market and allowing for tangible company progress to vindicate the investment on the market. It is about finding the companies that slipped the radar of the heavy investors and patiently watch as they rise like a Phoenix. Time is your greatest ally, but for the typical penny stock investor, it is also the very foe he willingly fights.

In this game, there is no need to bleed through compiling commissions. It’s about finding your horse and feeding him with time so that he will do all the work for you. After fully researching a company, still expect a company or two to die along this race, but do not be surprised when the rewards of the remaining horses fully vindicate all expended efforts.

Personally, these are my five horses (in order) that I’ve taken under my wing to nurture:

1) PNMS – Panamersa Corp.

2) PBLS – Phoenix Associates Land Syndicate

3) INTK – Industrial Nanotech, Inc.

4) USSE – U.S. Sustainable Energy Corp.

5) AGWS – Advanced Growing Systems, Inc.

Do NOT invest in any of these without having undertaken a substantial amount of research. Do not believe that this list is by any means exhaustive. I personally have seen several more horses out there to run with.