I am calling these 25 points “axioms” in that they are propositions that aren’t necessarily proved or demonstrated but rather are self-evident to those who trade/invest on the OTC. In other words, these truths really should be taken for granted and serve as a starting point or a foundation when deducing or inferring other propositions about OTC investing. I will not seek to prove these axioms to you…they just simply ARE. An axiom appeals to no other authority for verification…it stands on its own as the truth. Therefore, with these axioms we are dealing much more with beliefs and less with facts. But without fundamental beliefs, you’ll have nothing whereby to interpret the facts. So sit up and pay attention mainly because the following are extremely critical ideas that could keep you from losing your shirt and support you to win nicely at playing the OTC market. 
1. The Center Stage Axiom The longer an issue stays in the spotlight…the worse. There’s usually one or much more great reasons as to WHY a company is trading on the OTC..<br>.specially if it is a penny stock business. There have been many times within the past couple years I thought I had found that “true gem” that was going to be another Yahoo. I believed in it massive time. I bought into it massive time! But after the initial run and a dead-cat bounce or two…things began surfacing that were completely damaging to the demand for the stock. Basically put, the increased a stock climbs within the investing world, the a lot more its rear end shows..<br>.and OTC butts ain’t pretty. Are there the occasional rule breakers here? Yes (usually they are reverse merger plays). But those stocks are few and far between and they generally uplist quite swiftly to a increased exchange. As a general rule, the longer a organization stays from the limelight, the far more enemies it will attract. Bashers. Shorters. Bidwhackers. Apathy. New shares from a variety of and sundry places (particularly DILUTION and restricted shares coming off restriction). It is usually a war to produce the PPS (read: Price Per Share) go up on any concern. Don’t stay too extended at the war. Fight as long as you’re advancing and retreat the moment you see the enemy reinforcements gathering. Or possibly much better yet…retreat before you believe you even heard the enemy reinforcements. Remember, it’s not your work to produce a stock PPS go up, it’s your job to produce your portfolio grow. OTC valor is much distinct than armed forces valor.  
2. The Carpe Diem Axiom Always take *some* profit when you’re sitting on significant gains 50% or higher. Unless you are already independently wealthy and view OTC investing *only* as gambling for FUN (which isn’t an altogether bad thing to view it as), take profit. The method to accumulate wealth playing OTC issues is to always exit too soon. Furthermore, it leaves one feeling pretty dern good when he left some on the table for the next guy and was not the chucklehead that singlehandedly killed the run. If it does make you feel good that you were the chucklehead that killed the run, shame on you. Usually remember…you don’t know the subsequent time obtaining pressure will permit you to leak out of shares without injuring a stock and/or your portfolio! Seize the day. Seize the opportunity strong acquiring pressure offers. 
3. The Itchy Trigger-Finger Axiom Somebody constantly has shares to sell to ruin a run. Read it again: A person Often has shares to sell to ruin a operate. Make this statement your pc desktop and/or screensaver. Say it to yourself ten times whenever you begin your trading day. Paint it on the ceiling above your bed so it’s the first thing you see within the morning. Please realize that another person owns a whole lot of whatever stock you’re jazzed about at much lower average than you — and frequently times they own it for NUTHIN’ (i.e. compensated promoters, penny stocks alerts, debtors, relatives of CEO, etc.). Also, should you believe that You’re the ONE that is holding all of the shares that could potentially ruin a run…feel once more. Only God knows where all the shares are or will be coming from…due to the fact who knows what kind of shorts will attach themselves to your play and sell you nothing but VAPOR. 
4. The Domino Effect Axiom Practically everybody that loses cash playing the OTC looks to point a finger somewhere. They want someone or some entity to blame for their loss. Forget that the CEO sold 100M shares into the open market, they’d rather lash out at the common poster that promoted, endorsed, and otherwise “pumped” the stock. Here’s what folks like that ought to understand..<br>.there can be a domino effect of folks getting screwed. Here’s an illustration: the CEO legitimately plans NOT to sell shares but some emergency comes up…and believe me…”emergencies” nearly constantly come up for these guys! Selling shares is the easiest way for him to increase the funds and “After all,” the CEO justifies to himself, “the reason I went public in the very first location was to raise dollars.” The difficulty here is that the CEO failed to tell his promoters and/or closest investors about his need to boost funds and that group of men and women is living under the assumption that the share structure is stable (i.e the supply will remain a similar). So the CEO got screwed by somebody and had to pay up. He screws the promoters and his closest investors and they had to pay up. Now the promoters and close investors will possibly screw another batch of investors. Scenarios like this have happened a lot more times than I can count! When something goes wrong and you are holding numerous thousand dollars worth of stock, you are not going to be searching to inform the earth about things which will negatively affect the stock’s PPS! You’re seeking ways to bring in buying pressure, not decrease it! Folks love pumpers/promoters when they are helping the stock they’re in go up. Folks hate those very same pumpers/promoters when their stock is going down. Heroes and zeroes inside the microcap earth are one and the same..<br>.it just depends on the day. Remember this though..<br>.if the guy at the top decides to take advantage of folks..<br>.he most definitely will succeed. What you ought to know is your place inside the food chain. And friends, if you’re a rookie to the OTC globe…you’re a bottom feeder that gets caught eating the crap of all the other fish in the ocean when the “Domino Impact Axiom” kicks into high gear. 
5. The Vapor Shares Axiom Should you see a poster battling the idea of shorting OTC problems with determination and vigil, sit up and pay attention…that poster is either a short himself or working on behalf from the shorts. Individuals and/or groups with the right connections can and do short OTC problems…quite a few times they brief stock into oblivion with the full approval and consent on the leadership with the business. Contrary to common belief, quite a few OTC CEOs do not give a flying fig newton what their stock price does…what they care about is acquiring their hands on YOUR Funds. There is alot of dollars to become created when a stock goes up. There’s even a lot more income to be produced when a stock goes down in case you were selling vapor all the way down to .0001 and cover there. Microocap hedge funds exist. Microcap hedge funds manipulate stocks and steal the dollars of excellent folks. Unless you’re a microcap hedge fund yourself, you are able to almost never win a battle against a powerful microcap hedgie that is shorting the snot out of your beloved stock. Remember, this is an “axiom” that stands on its own. I will not seek to prove the validity of this point to you. You should merely either accept it or reject it. 
6. The Glass-Half-Empty Axiom Bashers on message boards are a quite real force to contend with and it’s not a coincidence that I’ve put this axiom after the “Vapor Shares Axiom.” It’s less difficult to obtain a individual to sell a stock than it truly is to buy a stock…and they know this extremely well. If your stock’s message board becomes infested with bashers…be cautious! Unless you believe the firm has some incredible news that may well force these guys to cover or unless you know of the group with mega-bank which is going to push the stock and perhaps force a cover…be careful when playing with shorty. Quite a few of these bashers will try and convince you that they’re there out of the kindness of their heart to try and rescue other investors from the perils of the diluting CEO or worse. Nope. Their motives are to bring the PPS down down down. Bashers, inside the end, are almost often appropriate eventually because they are bashing OTC issues. They know axioms like “The Center Stage Axiom” too!!! 
7. The Supply IS Demand Axiom I’ve seen several runs merely due to the fact a stock has a low share structure. A low supply creates demand. Know the share structure. On plays in which the TA is gagged, strategy to exit within hours of entering and play the momentum only unless you have STRONG and SOLID reason to believe the stock will go up. Call transfer agents. Learn what authorized shares, outstanding shares, and float mean. The share structure is the first factor I appear for when producing a new investment…it ought to be the 1st thing you appear for too. If a business isn’t willing to be transparent in this area, you can bet there’s a hundred other areas they’re not willing to become transparent about. I have and continue to invest in plays in which the transfer agents are gagged (unable to report to you what the current share framework is) but I do not strategy to stay invested for long. 
8. The Don’t Click The Mouse Yet Axiom Never invest in a stock at the high of day after a considerable run (excellent rule of thumb here might be 70-80%). Wait for a pullback. And while you’re waiting, do some due diligence. Check the company’s filings on pinksheets.com or otcbb.com. Read a few of their PRs. Check the history of the leadership there. Call the transfer agent (T/A) and ask for the share structure. And on stocks that are pulling back, buy at the bid. Remember that it takes both bid buyers and ask buyers to make a stock PPS go up. 
9. The Morning Patience Axiom The 1st hour in the market is “amateur hour.” With most first-hours on hot issues, it’ll either be extreme bid whackage which will cause some panic selling that will create some great buying opportunities later within the morning OR it will be extreme ask slappage which will lead to a pullback around lunchtime. I hardly ever purchase throughout the 1st hour with the trading day, and I’d venture to say 80-90% from the time that decision has paid off. I’d rather watch a few missed opportunities than be stuck in a bunch of “apparent” ones. 
10. The Bruised Knee Axiom There are too a lot of enemies against an OTC issue’s PPS going up to NEVER shed a battle. Know how to take a defeat. You lost. YOU made a mistake. Evaluate what went wrong. Evaluate why YOU lost dollars. It is okay to shed income occasionally but it is not okay to be just as dumb after as you were prior to! Think, imagine, Feel! Don’t make the error again. Get smarter. Listen, school is expensive…tuition rates are high! If you want to make dollars trading the OTC you had much better plan to spend the first year in school.  
11. The Show-Me-The-Money Axiom I once asked a poster that was complaining about getting lied to on a message board: “Are you stupid in any other areas?” Seriously folks, everybody on a stock message board has an agenda…which includes ME. Which includes YOU. Think about how typically your posts are seasoned with fiction and/or things that you simply simply Do not KNOW TO BE Certain. Consider that you simply have most likely served up a poo-poo platter covered thickly with powdered sugar. Trusting stock message boards for correct due diligence is like trusting the National Enquirer for accurate UFO sightings. 
12. The I’m-Rubber-And-You’re-Glue Axiom Develop thick skin if you plan to post on stock message boards much. ‘Nuff said.