I keep getting emails and Facebook messages trying to tell me that some penny stocks are actually worthy companies in which to invest.
I have ZERO doubt that is true and with enough research I’m sure I could find those two or three “diamonds in the rough”, but it doesn’t matter what I think and what I can do, what matters is what OTHERS think and what OTHERS can do.
I have ZERO doubt that my beginner students will NOT be able to find a diamond in the rough.
More importantly, even if they did manage to get lucky, the odds and the time it takes to truly do enough due diligence make it not a worthwhile endeavor.
It’s far easier to seek out the obvious bad eggs, profit legally (by short selling them) from their incompetence, hype and manipulation by trading their hyped up and manipulated stocks and save the hardcore digging (which doesn’t even pay off usually because there’s too many skeletons in the closet of ALL penny stocks to even be able to fully research it) for people who don’t understand that penny stocks aren’t to be treated as investments, they’re gambling chips.
My PennyStocking approach is not limited to short selling, I actually profit from buying the crap when it rises, too, but never in a million years will I ever trust anyone or any company in this space again. You all remember what happened last time I did that (see the details HERE)…and that was my best friend.
Tags: Guessing Games
