You're right, of course. I would not be in this position if I had not violated all the rules I laid down for myself when I first started investing. And all the ones I added to them as I went along. Desperation does weird things to people.
Having said that, though, I do disagree with you on some points of penny stock trading. I really don't think you can approach it from the same standpoint you would for the 5 buck and up crowd. Due Diligence doesn't mean the same thing with penny stocks. For one thing, you seldom can find out a whole lot about them, and even when you can it is often a pack of lies. Due diligence in penny stocks is basically finding out if it's about to go bankrupt, do a reverse split, under SEC investigation, or is being flipped or mauled by day traders. And even then, you never really know. I still haven't figured out how UNFC/REMH went from a 10 cent stock to a 2 dollar stock by doing a 10 to 1 reverse split. That's a 100% gain.
You have to go into it with the idea that you're going to ride the wave up and bail out before it crests. Unfortunately I missed the crucial point on ADGI. That may not be such a bad thing, though. It really does appear to be more than just your typical penny stock shell. I know I came down hard on it this morning, but I was just HAVING FEELINGS, man. This is the 90's, and I can have feelings.
John M. |
