The Investing Game
Posted by OtterMan on Sat, 27 Feb 2021
$5K - 52 Weeks - 20 Penny Stocks
Week - 2
The risks & rewards:
Loss of entire investment, unlikely but acceptable. Don’t risk what you can’t lose! Whether you’re literally rolling the dice or investing in speculative financial instruments, it’s sound policy not to take out a mortgage on your house to do so. The events of this week highlight why this is so. “Flush me J!” That movie line popped into my head as I observed some persistent and precipitous drops in the market. I think I was actually hoping for one of these. Makes it more exciting as well as realistic. Big swoop-di-do early in the week, a slight recovery followed by more decline.
Exponential growth of one or more stocks resulting +10K% gains, unlikely but acceptable… Historically, many of today’s successful companies started out with very humble beginnings. It is not unheard of for a stock priced at $0.04 a share to grow into $0.40 then $4.00 and sometimes, over several years to $40.00. It’s unusual but it only needs to happen once to make the whole exercise very worthwhile. “If you’re strong enough!”
The outliers - My target was to buy as close to $250 of each position in order to have a more or less even reference point. I was also looking to stay mostly in the one dollar and below price range. Some of the excursions from this paradigm are listed here.
This was the only buy I had to raise my bid on. I didn’t change the count resulting in the higher initial cost. The excess was made up from two other buys including below. I don’t have any prior attachment to this one. This is a software technology company in the security realm. Its selection was based on a fairly simple screening process which will be touched on in a later installment. StrikeForce Technologies
At the high end of the price range and another sub for a failed buy attempt. I think I bought this early at something like 14 cents, then got cold feet and dumped it a month later. I picked it up again later on my existing account. Had I stayed in at $0.14 I’d have done well by waiting the year I’m giving these stocks. What can I say, I was a younger man a year ago and still had much to learn. Probably one of the reasons for trying this. Mushrooms of all things, the psychedelic kind. Therapeutically of course, apparently some promise in treating some very serious mental conditions. It’s done well enough that it seemed a natural fill in choice as a sort of reference position. There was a mention of uplisting this one to nasdaq, if/when that happens I will probably buy more on the existing account. MindMed
I wanted something in the sub-penny class for reference. It doesn’t even show at 2 decimals. Bought at $0.0045 a share I can hold this for years if I have to and I just might! Seen in a purely philosophical sense there is no such thing as nothing, there are only smaller fractions of something. This does not apply to money for some reason but this stock comes close to an infinite regression, it’s down this week. It really is the quintessential opportunity in this investment class. I only need the decimal point to move a couple of places in the right direction for a very favorable outcome. World Health Energy Holdings, Inc. appears to be a carefully nondescript cover name for some cyber-spooky security stuff. I’d like to ask a lot of questions about what they do, I’m just not sure I should... WHEN Group, formerly known as World Health Energy