| AheadoftheBulls.com's Investment Philosophy
1. Buy Low, Sell High- Obviously one of the most basic principles in trading, but it still seems to escape some investors. It is key not to chase stocks, this will leave you with a bag.
2.Diversify- In the tumultuous world of small/ micro- cap trading, it is key not to put all your eggs in one basket, as free falls and astronomical reverse splits are not uncommon. A way to combat this, and to ensure that you are continually bringing in profits is to diversify. By this we mean, if you are invested in a .0001 stock, you should have a position in a less volatile stock to ensure that you have a backup plan if your lotto play doesn't go anywhere. This principle will help you grow your profits on a continuous basis.
3.Read the Charts, Do the Screens, Do your Due Diligence- Basically, do your own research, it is great to take shortcuts by reading through sites like ours, and other peoples opinions and rumors on message boards, but to ensure that you are making a good decision, it is key to read your charts, to have some basic screens you use to find plays, and to have a good method of going about your due diligence. Never read too much into a chart or a company story because in the penny market these can end up being false signals, however, use the story and charts as guides toward your investment decisions.
4.No Hesitation- Hesitation on a penny play can be disastrous, weather it be missing a bottom, or holding too long. Always follow your first instinct, it works on multiple choice tests, and it works in investing.
5.No Emotion- This market is a rough one, and if you let a bad decision, or a good decision sway your emotions too far in either direction you're throwing yourself, and your prudence off balance. Like a game of poker it is best to keep an even keel. Because as they say "when your up it's never as good as it seems, and when your down it's only temporary"
These are AheadoftheBulls.com's philosophies, we urge you to use our template to create your own philosophy
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