| Penny stock investors have to live in the here and | | | | loss, I usually share one of my stories where I lost a |
| now. Their investing horizons are extremely short | | | | bundle. This is to prevent them from becoming |
| ranging from a few months to a few hours. While I | | | | defensive and to let them know that we've all been |
| can understand why that question surfaces time and | | | | there. If they were successful, I congratulate them |
| again. The answer is always the same - 'It depends'. | | | | and ask them if they have looked at the company's |
| This is not something that folks like to hear especially | | | | competitors? I've found that my biggest successes |
| those who are looking for a quick buck. My intention | | | | have come from a few industries or niches that I |
| isn't to annoy them though it might seem that way. | | | | started focusing on. Being able to leverage your |
| The answer is intended to fish for more information. | | | | industry experience each time you make a trade |
| I usually follow this up with additional questions like | | | | helps you make better informed decisions. Not |
| the following: | | | | always of course. There are no guarantees but |
| Which stocks are trading in right now and how did | | | | industry knowledge is helpful. |
| you hear about them? | | | | The above two questions usually result in a short |
| This gives me a feel for their experience and how | | | | conversation where we figure out whether I would |
| they go about their research. What I don't usually like | | | | be able to help the other person or not. I have seen |
| to hear is 'Stock XYZ and I heard about this hot pick | | | | enough traders jump the gun and make bad trades |
| in forum ABC'. While forums can be a source of good | | | | simply because they followed some |
| information in my experience they usually are | | | | recommendations without doing their due diligence. |
| frequented by people who are looking to vent or | | | | Usually they bought the recommended penny stock |
| just be heard. | | | | a little too late or held onto it too long. There is |
| Was your last trade successful? | | | | definitely some trial and error involved in making |
| Once again, I don't do this to rub salt in their wounds | | | | penny stock investments but once you learn the |
| but rather figure out whether they are coming off a | | | | basics and get some trades under your belt, you will |
| high or if they are on a losing streak. If they made a | | | | be minimizing the errors. |