One of the things one should not bring to the smallcap penny stock market is their old school philosophy for due diligence. When you start playing penny stock picks the traditional rules often don’t apply. This post is actually some of the advice I give many people who I see as new to penny stocks, and most simply do not listen. The choose not to listen because they think that everything they learned from their business classes and in their investing books applies to penny stocks.
We’re talking about penny stocks on the Bulletin Board, OTC Markets (and its various tiers), the Pink Sheets and the Gray Markets. We are also talking about the Venture Exchange in Canada as well.
Everyone that is in the smallcap awareness and the penny stock markets in general has read the same books. Some had the same traditional education that you had. Most watched Jim Cramer back when he was cool. You know, before he cried to Jon Stewart Jimmy Swaggert style. Most also know exactly what you are looking for and they are going to make sure you find it.
Let’s get to the five things most investors do wrong.
UP NEXT: MISTAKE NUMBER FIVE
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