Over the weeked we launched our brand new VIP Mastermind event and it was a cracking success. So much so that we are thinking about having one more this year on December 10th. Now normally I would not dream about having something like this so close to Christmas, as most people just aren't interested, but then I thought about it some more - this is a VIP Mastermind! I am looking only for the select few, so I don't WANT most people to be interested.
During the day, Avi our head Forex Trader arrived driving a Bentley with his surname on the number plate. Well he is 23 years old so why not enjoy it - you know what they say? Youth is wasted on the young. It's funny to see all these 60 year olds with their younger dolly birds in their flash car trying to recapture their youth. Don't get me wrong, that might well be me one day, but that's not my point - my point is, why not do it immediately if you can.
Avi then showed me a poster which read,
"You are the sum total of 6 billion years of evolution - "£$£*ing act like it!"
I love it! How true is that?
When I think about the recent riots and the mob mentality that went with it - is that the sum total of 6 billion years of evolution? And a bit closer to home, how about my own habits? Why can I not say "No" when presented with a tempting cake or sweet after a meal?
Why do I allow myself to get sucked into watching TV - OK I have been getting better since I last blogged about it, but why is it such a struggle? Knowing what to do is the easy bit - doing it is something entirely different.
The only way I know how to deal with these things is not to have them in the house in the first place, including TV. But the electronic baby-sitter is very useful when it come to the kids, so I guess it is here to stay for a few years yet.
Last night while going through some boxes I rediscovered a tip-sheet I used to subscribe to which talked about Micro-cap stocks (also called penny shares in UK) - the kind of companies that are supposed to be the leaders of the future due to their disruptive technologies.
I thought it would be fun to see how they did since 2005 when I subscribed to it.
Well the results were interesting - some of them had gone up four-fold, and some of them had been bought out and most of them went up by at least 20% at some stage or other. The key is not so much when to get in but when to get out. With micro-cap stocks it is a hairy ride to say the least. They are relatively thinly traded too and so this adds to the volatility.
I am going to do some more research into it but it seems to me the only way to make any money out of it is to buy long term call options - that way the maximum you can lose is 100% but it gives you enough time still be right and make a LOT more than 100%. As long as you don't put all your eggs into one basket, it would only take 1-2 good trades to make up for all the losses. And since it is very unlikely that micro-cap stocks have long term or LEAP options, I am rapidly coming to the conclusion that as exciting as it is, micro-cap stocks investing is not for me.
Any thoughts?
Until next time
Marcus
Interesting to look back on shares like that and what they have done. I remember when I started trading, I used to sit and look at charts for hours seeing if I could get my intuition to tell me what was going to happen next (this was just after watching The Secret!!;-) but that basically didn't work so I decided to just stick to the strategy!
Cheers
PH
Posted by: Paul | October 31, 2011 at 11:32 AM
I don't think that many of them are optionable, and if so, they probably have a huge spread.
Posted by: Steve Oxlade | October 31, 2011 at 02:13 PM
Thank you for your email.
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So if you really need an answer urgently, please call the office on +44 (0) 208 387 4044 and talk to Laura.
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Marcus de Maria
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Posted by: MarcusdeMaria | October 31, 2011 at 02:14 PM