#NavigateTheOTCJanuary

1/22/21 - VALUE OF #OTC #Stocks

There's an old saying that goes like this: "A cynic knows the price of everything and the value of nothing". A lot of stock talk on here is about the price, especially price targets with no basis on stocks that have run

hundreds of percent. Well, if you want to increase your chances of healthy gains in the OTC, understand WHY you're buying/adding/holding/selling at certain prices and WHY you chose a certain stock. Sadly, many just look at WHAT and not WHY. This also sheds light on why I would

rather tweet about #stocks that are quiet with potential rather than stocks with tons of volume and hundreds of tweets. Imagine it's a rainy day and you are having dinner with a bunch of friends. The conversation is filled with "it's raining" and "the sky is gray". Does that seem

normal? Absolutely not. But in the stock market, stating the obvious seems to be the norm, and some traders touting a stock that's way up are selling along the way, hurting new investors who think something overcooked is a wise investment. Instead, I choose to have insightful

discussions about stocks with research, charts, and trends. And I prefer stocks where many are still hesitant to enter because they want instant gratification. That's where VALUE comes into play. A stock that has a lot of DD and exciting events along the way but has been stagnant

or down has value. If there has been a lot of price action and/or the catalysts are exhausted, the value decreases. Green stocks often have value, but there have to be catalysts or a good chart for the value to be there. Money can be made on stocks starting to run. Examples

include a bluesky breakout on the chart, an R/M coming, or a material event like a court case or a launch coming. Pay attention to timelines. If you see impatience, it's a great opportunity to add/buy. As for my top 10, I look at several things to determine it - catalysts, chart,

reasons why it's stagnant (lack of volume plus catalysts is a very good thing), and share structure. So you will often see stocks consolidating instead of stocks that have gone up tons. Remember, my goal is to help people find gems, not become bagholders! I have to give shoutout

once again to @WildRhino. He is developing a system to rate stocks based on catalysts, price, share structure, OTCMarkets status, etc. It will be very useful for determining which stocks have optimal gain potential. Coming tomorrow is a post on traders' emotions. Happy weekend!