I spent the weekend at my mom’s house and grabbed some old boxes of stuff to take back with me. While going through some of the boxes, I discovered an old picture of my mom and dad on their wedding day. They met at a local swim club and it was love at first sight according to my mom. I think my old man tried to cram as much of his knowledge into my brain before he left my mom and I, he was always full of advice and gin.
He used to tell me two things about investing. One was that traders had no balls; you need to buy and hold, and the other was to never fool around with penny stocks. He was a professional life guard, womanizer and gambler who never traded or invested in anything to my knowledge so you can wipe your ass with that advice.
Over the past few months I've been thinking about his words of wisdom or lack thereof, and actually bought a few penny stocks with the intent on holding. Now I'm talking about a very small amount of my capital since fooling around with penny stocks blow up an account rather quickly. A few hundred shares here or there is all I'm willing to risk, and I'm not really worried about looking at them too often since I'm "buying and holding."
One of my favorites is CPE. I bought a small amount at $1.40, and sold half around $4.00 letting the rest of it ride. The chart is looking a bit ridiculous now, but I still don't see a good reason to sell the rest of it yet.
Another one I like is the thinly traded GMET, small amount at $0.95. This one might be another good longer term investment. I have a bunch of oil and gas laggards on my radar, but again I'm not trying to get too fancy with my trading on these. A couple hundred shares buy and forget for the time being, these kinds of stocks can wipe me out if I invest/trade too much.
A year ago I had a few thousand GGP stocks at $0.68 with the intent on "buying and holding" even though I was well aware that they would most likely go through bankruptcy. My plan was to hold throughout and let it ride. Well I panicked and sold at $1.10 right before they filed. Not a bad trade, but I let my emotions get the best of me and didn't follow my plan. Sometimes when I'm eating my ramen noodles in the dark, I just want to kick myself for not following through with my plan.
