The Power of the Pennies: I'm not losing on today's sell-off
Only 3 stocks... Just 3 stocks out of a now 11 stock portfolio (the 11th being HOTT, short term trade that didn't work out) are bailing me out of today's massive triple digit sell-off.
That is why I love penny stocks a lot. If you can find ones that will last a long time during this recession no matter how rough things get, then you have yourself a really interesting thing.
That thing is that Penny Stocks do not CARE where the market is trading. On days of huge market gains, I may not gain much if any at all in my portfolio.... Cause my penny stocks dropped.
On days the market plummets beyond comprehension, like today, my Penny Stocks don't care and shoot upward. Sometimes it takes a press release other times they just simply trade independant of the over all market.
I consider Penny Stocks exactly like that... Independant of the overall market. Completely isolated from whatever anyone else is doing. So, I put them in their own SECTOR!
Of course... The big deal for me is that one of my Penny Stocks is up close to 20% off extremely positive news in a press release issued today. With over 5,000 shares riding on this single penny stock, my portfolio is insulating all of today's losses quite well.
So, while I am sitting here throwing up my hands wanting to quit and begin writing angry letters to President Jimmy Carter II, lo and behold.... my PENNY STOCKS show me the light at the end of the tunnel :-)
It's great to be able to find GOOD QUALITY companys that can survive the worst that the economic environment can throw at it...and given the worst....they can actually produce GROWTH.. bottom line and top line growth.
I can only recommend 2 SECTORS right now for "NEW MONEY" to invest in a Penny Stock given that you have done your homework on the Penny Stock within that Sector:
1) Health Care / Biotech
2) Military Defense Contractors
I totally suggest that you if you are totally going NUTZ over one of your stocks in your portfolio.... Maybe deviate from Large and Small Caps and start looking at those MICRO CAPS today.
Cause, ya never know... There may be something there to keep your mind off the madness or to Trade out of one of your miserable stocks into one that's cheaper and nets you more shares despite the LOSS you take and ultimately can earn you back your money and them some.
I use a TRADE DOWN SWAP approach whenever possible.... If I want to trade out of a stock.. I look for a "Cheaper in price" stock to swap into if there is one. This way I get MORE SHARES and thus MORE ACTION.... If I am right.