The Pink Sheets. Pink Sheets stocks. The Pinks. Everyone seems to be talking about trading shares on this penny stock listing service and the chatter is only going to get louder once the Pink Sheets’ OTC QX division becomes fully functional. With all the buzz surrounding the Pink Sheets many people are asking themselves if they should check out investing in this market. Rumors abound in on-line chat rooms like Raging Bull about fortunes being made by those who trade in the smallest of small caps. Is it possible? Is it true? Is there something about the Pink Sheets that make it different from the NASDAQ or the Big Board? The answer is yes and I want to provide some antidotal evidence about the Pink Sheets.
My name is Richard Bond and I want to tell you how trading Pink Sheets stocks turned my life around.
It started when I turned my financial situation around which lead to a change in my overall outlook on life. Now I live my life on my terms. I learned the hard way that the amount of money you have determines what kind of life you will live. I decided that I needed to work hard for myself, not for my employers, and I needed to find a way to get my hands on the kind of money I needed for the kind of life I wanted to live. I quickly found out that investing in the stock market can be like owning a license to print money, but in order to play in the big leagues like the New York Stock Exchange or the NASDAQ, you have to start with lots of money. If you have lots of money to play with, the big exchanges are something you might be interested in.
But, what if you’re starting out at the bottom? Don’t worry, because there is a place in the market where the little guy has a chance at making it big. This is what the buzz you’ve been hearing is all about – the Pink Sheets. I want to give you a rundown on what makes them truly unique.
Before I start, I want to provide you withf background as to how I discovered the Pink Sheets and why I think they are the easiest way to make money.
I use to think I was doing pretty well for myself. I had a five-year old car, rented a nice apartment, and lived paycheck to paycheck. Savings accounts, well, I reasoned with myself, those are for old people. I was twenty-seven years old and working in the mailroom at small brokerage firm in New York. Then in quick succession two things happened that woke me up and made me realize what a pathetic situation I was in.
First, my smart, really good-looking girlfriend dumped me. She explained she still wanted us to still be “friends” but the new guy in her life was going places. He was going places alright, he use to drive to places in his brand new Porsche Boxster. I don’t have any ill feelings towards my ex-girlfriend since there is no law that says that smart, really good-looking, and ambitious people have to date slackers who at age twenty-seven are still working in the mailroom.
Second, a couple of weeks after I was kicked to the curb by the girlfriend, one of the partners in the firm “told” me (notice I didn’t say ask) to help one of the traders to clear out his office. I didn’t think much about the request since I was use to being a go-for and I assumed the guy was being fired. He was a loner who struck to himself and didn’t seem very sociable. I helped box up items in the trader’s office in silence, he didn’t speak and I didn’t want to embarrass him by making small talk.
Finally, everything was put away and I was handing him the last box to load on a dolly that he would use to remove every memory of his existence from the office when I caught him smiling at me. I was dumb enough to blurt out, “Why are they firing you?” He laughed and told me he wasn’t being fired, he was retiring. He had made enough coin so that his wife and three children were packing-up and leaving New York for Florida and they now had enough money that neither of them would have to work again. They were going to make raising their young children their full-time jobs while enjoying the 2.7 million dollar house they had just purchased. “Of course,” he said with a glee in his eyes, “we are still going to take time to go on vacations.” He told me he was never going to work at a 9 to 5 job again. Then he told me two words, “Pink Sheets” shook my hand and was gone. He was thirty-five years old. He was only eight years older then me and he had already said goodbye to the rat race.
That was four years ago. Now I live in Las Vegas, I own three cars; I own a house in an exclusive neighborhood and an apartment on the strip. I have a full bank account, an investment portfolio, I wear designer clothes, and I don’t have a girlfriend – I have girlfriends. Trading stocks on the Pink Sheets changed my life.
There is a lot of ways to make money in this wonderful capitalistic free enterprise world of ours (the easiest being to inherit a big whack of cash), but many of those ways are complicated and require a large grub stake to get started. We all hear about fortunes being made in the real estate market or in building a better mouse trap, but lets be realistic, unless you have enough start-up cash and more importantly the time, those ways are not really an option for you. As well, there is a great deal of risk in each venture. There is nothing like having the bank call your loan in a declining real estate market to send you to the poor house, or watching all your money vanish if the business you are trying to establish flops. So, you have to ask yourself, is there a way to start making money, real money, not the kind of money that a wage slave gets paid, but the kind of money that counts, by starting with a small amount of money and limited risk? I am hoping you answered the stock market, because that is how the big players who started out as little fish all made their play.
The stock market? Yes, the stock market. The last place where someone with a bit of cash, some quick wits, and guts can start to make money. I know most of you are thinking or even saying “What is this guy talking about? Stocks are more risky then buying real estate or stating a business.” While consider the following: Can you buy real estate for $1,000? I know you can start a business for $1,000, but how good a business? And can you invest a $1,000 in either and double it the same day?
The trick is that the only place where a person can start making money with as little as $1,000 is the Pink Sheets. I know some people reading this are going to say “Where the heck am I going to get a thousand bucks?” Don’t worry if there is a will, there is a way. Start by refusing to buy “designer” coffee for a start.
CONSIDER THE FOLLOWING PINK SHEET FACTS
It doesn’t cost a huge amount of money to invest in Pink Sheets stocks. Instead of paying $25 a share, most are priced at under a dollar
The volatility of the Pink Sheets allows you the opportunity to double your money.
You can buy Pink Sheets stocks online without the need of a costly Stock Broker
When you sell online, you call the shots, no more begging your Stock Broker to buy and sell. You buy when you want to buy and you sell when you want to sell. Best of all, you can automate the system so you don’t have to sit at your computer waiting for something to happen.
You can access information about a particular stock online at the Pink Sheets website which provides you with all the information you will need about what is happening with the Pink Sheets stocks. Try finding a summary of the New York Stock Exchange and you have to go to at lest ten different sources.
The Pink Sheets website will allow you track a stock’s progress with charts. You can find contact information about a Pink Sheets company from the Pink Sheets website.
Companies that list on the Pink Sheets are start-up companies; this allows you to get in on the ground floor of emerging technologies.
I’m not saying that there aren’t risks, but when you decide to go after your dreams and case the money you want, there are always risks. With the Pink Sheets you will always know what your maximum exposure will be. If you invested $500 in a stock that fell apart, they you know that you blew $500, with a business you never know what problems are waiting to get you should you fail.
You buy into someone else’s effort. You don’t have to put in effort other then researching, buying, and selling. You don’t have to be up till ten at night filling order like some of the people running the businesses in whose stock you have been buying and selling.
So how do you start trading stocks on the Pink Sheets? While there are five elements you have to have or be willing go get:
1. Tools: You will need a computer, an internet connection, an on-line broker, and a stock tracking program.
2. Skills: You will need to learn how to use the Pink Sheets Website. You need to learn market terminology and how orders are processed. You also need to be able to assess your risk for each stock purchase. In other words: you need to acquire the skills to use the on-line broker correctly, and how to use the information you gather for analysis and for finding the right stocks.
3. Knowledge: Most beginners rush out and buy the first stock someone recommends which is the WORST way to buy a stock. This almost always will result in either a loss or a very disappointing return on your investment. That is because the market is dominated by the “market makers” that buy huge share lots and frequently sells whenever there is news on a stock, taking profits. Before you buy any stock, you need to get to know that stock by studying or researching the key fundamentals about the company behind the stock.
4. Trading Style: Your trading style (meaning your investment objectives) will evolve the more you trade. When you first start out, you will want to trader for short term profit, but as you build up your capital you will be able to choose investments for the long term that will lead to even greater profits.
5. Risk Control: How to protect profits with “stop losses” and how you protect profits with a “trailing profit stop.” Stop losses are a trader’s best friend and protects them from catastrophic losses.
The simple truth about Pink Sheets stocks is that they are best way for someone with little cash, but a lot of courage to make a fortune.