In the last 2 weeks I have added 2 micro-cap stocks to the portfolio— $INT and $AAA... $INT- Intertainment Media...a conglomerate who owns ortsbo.com— a real-time translator for social media; $AAA- Allana Potash- a potash junior focused on exploring property in Ethiopia...
I've never bought a real penny stock in years; In fact, I haven't owned anything under $10 in quite a while... small cap ventures involved maybe a scalp or two in a few China stocks like $CCME, $TRIT, and $LIWA..all were over $10 and followed an ongoing theme last year for popularity in Chinese stocks....
I like the movement of the market leaders like $AAPL and $POT... going up double digits in one day... and if and when it pulls back, if you've done the DD, you've have nothing to worry about; they always come back after consolidation... I like predictability... I like certainty in the charts...I like the fact that I can walk into an Apple Store or a Lululemon store and say ...yeah..they're going to be fine... or time to sell...
With pennies, what I've found in the past, it was, first of all, hard to research and do proper due diligence, but also almost impossible to control the greed factor when they blast off; and usually I end up chasing them up, getting emotional, believing all the hype around the bullboards, panic selling, and generally ignoring most of the rules and principles of investing and trading, I have learnt and abided by over the years! And, I hate when I get emotional— too many dumb decisions are made....
But man! The excitement levels are second to none!!! Watching a pick soar like $INT and $AAA the past 2 weeks and coming out looking like a genius when you triple or quadruple your original investment...then ponder your own methods, credibility, and judgement when it turns the opposite direction... like the flash crash with $AAA yesterday...adrenalin and excitement coursed through my veins over the last 2 weeks just like when I was starting out trading stocks and pennies circa 2003 with names like Oilexco, UTS, UEX, Diagnocure, Pangeo Pharma, Constellation Copper, CV Technologies, Pacific Safety to name a few....
... meanwhile I was totally missing out on glorious opportunities in other equites because I was too busy and excited staring at the movements of $INT and $AAA.... I made off with some incredible profits in a short amount of time with these babies but also got stung bad with a few.. some waiting years on hold to even collect on the tax loss of the company totally disappearing into oblivion.
That being said, I took a harder look today and had to give myself a slap!
My shares of $INT and $AAA comprise of less than 1/2 of ONE PERCENT of my total portfolio— even if I lost my wad spent on $INT and $AAA, it would not make a dent in the portfolio... AND here I was spending, way too much time reading the BullBoards for rumours again trying to find out what happened and if I should sell or buy more.... while a core holding like $AAPL was so totally tradable today with its own mini crash, I missed out on a lot of potential cash being
made....
$INT and $AAA are Magic 8-Ball picks...for fun, a quick scalp like they were originally meant to be.... They involve as much research and diligence as shaking the Magic 8-Ball for a BUY or SELL signal.... I do like the concepts and the potential of the companies but buying them is really akin to putting a few chips on red and spinning the wheel... it just happened to land on red 2 weeks ago and suddenly I was mesmerized by the action and thinking I was ready to be a professional gambler!!
So back to reality.... boring but predictable... not as lucrative but safe....
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