Penny Stocks and Las Vegas Showgirls – What Do They Have in Common?

Long before moving into the penny stock arena I lived in Las Vegas for a summer, trying my hand as a blackjack professional. That of course is the story itself and one I won’t go into here, the other thing I did regularly was to catch some of the outstanding entertainment they have in Las Vegas. Good fortune allowed me to meet more than one show girl, and before you let your imagination run, once the costumes were off and they’d changed into blue jeans and T-shirt, they were just like any other girl you’d meet, particularly one named Holly.

Holly lived in Las Vegas, attending UNLV, she was putting away money and had plans to start investing with the hopes of one day becoming financially independent. Of course my intentions were focused more on a relationship, yet I enjoyed listening to her discuss her future with a keen interest.

At the time she knew little about the stock market, and nothing about penny stocks but she had a keen sense for business, and a sensibility I felt would give her success in life, no matter what she chose.

Of course getting to know her allowed me to come backstage, meet some of the other girls, and more than once I watched the show from the wings, and on select nights from a table in the house. I noticed one thing in common with all the showgirls; they were filled with energy, wore those amazing costumes, but once the show was over, were some of the most down-to-earth people I’ve ever met. Many were married, others had children, and several spoke of this being a stepping stone for the future.

The one that held my interest though was Holly, she was systematically putting money away every week and her mind was focused continually on her goal of financial success, possibly even financial independence. As I think back of that summer in Las Vegas, and wonder how I can illustrate what a show girl has in common with penny stocks is simply this when you invest, you must keep your eye on the goal and in almost every case with penny stocks, the goal should be your exit point.

Since stoploss orders are not allowed with penny stocks, it’s mandatory you have an exit point in mind before placing your buy order. By having this goal in the forefront of your mind, you can lower your risk, and potentially lock in profits.

What I want to do is be completely honest and let you know there is risk associated with penny stocks, but it is a calculated risk, assuming you have three things

  1. The right mentality to keep your eyes focused on the goal
  2. A sum of money allocated for investing, making certain your existing financial obligations are covered.
  3. The right information and market timing.

I’ve already discussed point one, so let’s move forward to point number two. In order to be a successful investor you must have a sum of money earmarked for investing. And while this money could be accumulated by mortgaging your house, borrowing on credit cards or other credit nightmare scenarios, the optimum way, and one that will allow you to sleep well at night, is to put a side a certain sum every week or two weeks from existing income. By doing this you are in effect adding your penny stock investments into your monthly budget, a very effective strategy to ensure adequate funds to invest.

Number three concerns having the right information and market timing, crucial to successful investing. There are multiple penny stock newsletters available, the difficulty is knowing which consistently offer good advice, and which ones to steer clear of. Our recommendation is to join several, track them over time, then determine which offers good picks. It’s not difficult, but can be very time consuming.

Sometimes as I’m scoring the net for financial data and penny stock alerts, I wonder if Holly succeeded in her financial goals. Holly if you’re reading this I wish you wealth, health and success.