A business and relational journey. Business world introduction, MBA journey, and business research and decision making.
10 Advanced Penny Stock Axioms 2/17/14

The pursuit for capital for my future entrepreneurship is going well. I’m applying 3 penny stock strategies with 3 different trading accounts to keep the trades straight. 

+ My strategy: Penny stocks with Revenue, increased volume, current filings, technical analysis (TA) of buy, and low short selling. More is laid out on iHub.

+ Uptrend Pennies: Stock alerts from posters. TA can aid entry and exit but news is primary interest.

+ ANN Tickers: Penny stocks that reside in the AMEX, NASDAQ, and NYSE exchanges. TA is used for entry and exit.

Here are 10 Advanced OTC Axioms (a work in progress) by Vantillian at iHub. I posted his original 25 axioms a few months ago. The rest of this post is in Vantillian’s words:

I’ve already completed 25 Axioms here: iHub

If you have not done so already I would encourage you to read them as they’ve been around long enough to have a proven track record of helping investors in the online world. Here are some unsolicited testimonials:http://investorshub.advfn.com/boards/read_msg.aspx?message_id=57729224 

These new “advanced” axioms are another humble attempt to help folks that are crazy/daring/reckless/stupid enough to buy penny stocks. Why God made so many of us I’ll not know this side of heaven. wink 

I still consider myself an OTC “student” as opposed to “master”. But I’ve got several years of OTC (think “penny stock” whenever you see “OTC”) experience under my belt, some scars, a few trophies, and I’ve diligently and consistently sought to approach OTC trading and investing philosophically where using fundamental, bedrock, axiomatic truth results in the best market decisions. 

(I would exhort you to take a break if you think you’ve arrived.) 

Remember, an “axiom” is a principle or truth that stands alone without the need for proof. They just are. Abraham Lincoln might use the phrase “self-evident” to describe axiomatic truth. So, I don’t seek to present a case with well-structured arguments to “prove” these axioms…they are designed to stand alone and to either be accepted or rejected. And, if accepted, to serve as the foundation of one’s thinking and decision making on the OTC. Build your structures upon the solid ground of correct and accurate truth! Consider these axioms as sunglasses with colored lenses that will filter/color/define everything you see across the OTC landscape. We all work from mostly the same pool of facts and data…how we interpret it all makes the crucial difference. 

There will be some overlap between these axioms and the other axioms, but that’s okay. 

So, here are 10 Advanced OTC Axioms:

1. The Pigs Can Fly Axiom. Anything can run! I have basically stopped “warning” people about scammy, scummy, crummy companies because there have been several times when my warnings inadvertently kept people from making dough as the stock went through the roof. Anything can fly! The nastiest wart-covered, fat, sloppy mess-of-a-hog can grow wings if some hedge fund or some promo or some inexplicable force gets behind it. This is part of the allure of the OTC, I guess. Sometimes things happen in pennyland that leave even the most seasoned veterans slack jawed. You will never master the OTC for this reason! The law of gravity sometimes vanishes for an indeterminate amount of time but it always returns with vigor at some point. Sometimes, the really scammy companies run like the wind because you’ve got a fearless, no-conscience CEO tossing out insane revenue projections and/or fictitious buyout offers and/or anything that keeps the shiny object attractive just a little bit longer. (Also, understand that many times those posters yelling the loudest against scammy companies are trading the stock too! Perhaps it makes them feel better about their profits. Who knows. Where there is volatility, there is money to be made.) 

2. The Horse Apples Axiom. This axiom is closely related to the Pigs-Can-Fly Axiom. Realize that penny stocks are like dung. All of them. If you have chosen to buy a penny stock then you have chosen to purchase poo-poo. Now, sometimes crap can make people a lot of money (think fertilizer companies and/or Mad Max Beyond the Thunderdome), but when you position yourself to defend or support your favorite penny stock company what you have essentially chosen is to become an advocate for doo-doo. I know this is a troubling mental image but it is accurate. “Hey, it’s crap! Don’t buy it!” insists the do-good crusader. Yeah, we know. They *all* are. What matters is if it will MOVE. What matters is if there is POTENTIAL for gains/volatility there. What matters is what the masses BELIEVE. What are you going to do Captain-Save-The-Planet? Tell them how bad that poop smells compared to that not-so-bad smelling dung over yonder? 

3. The Socrates Axiom. You can’t really be sure of anything. You will become a savvier trader when you embrace this. In the perception-driven world of the OTC, I would have to agree with Socrates that purported that: “the only true wisdom is in knowing you know nothing.” (Debating whether or not you can really know for sure that you know nothing is another matter. Just work with me on this.) You can’t be sure of the share structure. You can’t be sure of that large European holder that you just *know* is waiting to sell his eleven million shares until after the stock hits a dollar. You can’t be sure of the guy/gal that gave you the tip. You can’t be sure that the numbers in the press release are correct. You can’t be sure how much stock is going to hit the street next week. Understand that non-dilutive contracts often mean absolutely nothing to these penny CEOs. Should a marketplace like this actually exist? That’s a good question, too. But for now, it does, and there is money to be made on it for those that understand it by never understanding it. 

4. The Share Swelling Axiom. Every stock gets diluted, period. If it’s not the company diluting, it’s ancient restricted shares coming off restriction. Or maybe it’s an escrow account that managed to stay hidden from the latest NOBO. Or maybe it’s an old cert some funder or accredited investor forgot about in his filing cabinet and he just found it. If it’s not one thing then it is another. There are many clever and creative means whereby the float on your cherished stock can GROW QUICKLY. Trusting that the stock’s float will remain stable is like having a tailgate party on a small lake that has quickly frozen over, inviting the entire town to come out, and trusting that the ice will hold up under the weight. Ain’t gonna happen. Sure, you’ll have a great time on the ice for awhile but something’s gonna give. When a stock is trading at a high price per share and there is liquidity at higher price ranges, the temptation is overwhelming for someone who has the power and ability to add shares to the float to do so. Oftentimes, stocks can and do go up when there is responsible dilution. And sometimes they even go up with irresponsible dilution (see Advanced Axiom #1). Penny stocks *all* dilute folks. Why would they be putting out press releases and hiring IR firms and shucking rumors if there wasn’t money to be made. And how do these companies make money? After all, they went public to raise money…and the way making money is done is through the *sale of more shares.* All of them dilute…even the ones that proclaim loudly that they are doing a share buyback. Think: how much of a buyback is it if they dilute twice as many as they buy? Maybe you’re a noobie to OTC investing and you’re thinking: “People would actually do that?” Yes, yes, YES they would do that (and they DO)! In fact, the louder the company and/or posters insist that the float is stable the more leery I become. Recently I got my butt handed to me because I neglected this axiom and boldly challenged a poster about the share structure of a stock I persisted remained unchanged. The very next day the transfer agent was called and we discovered that the scumbag CEO had diluted by about 5% of the outstanding. There’s always a reason why your favorite stock is getting buzzed about. Even if a stock’s run starts out as purely organic (which I believe can and does happen at times), understand there are forces out there that can add supply in amounts that will utterly cripple demand. 

5. The Friends and Family Axiom. Sometimes the pre-promo *IS* the promo. Do you understand what I mean by “pre-promo?” Here’s an example of what I mean: “Hey bud, head’s up on XYZX. Hearing massive push coming next week with loads of overseas money coming into it.” If you’ve been online for any amount of time you’ve likely received a private or public message similar to this! Understand that sometimes the friends and family (i.e. “pre-promo” or “pre-push”) program IS the program. In other words, sometimes YOU are the promo without knowing that you are the promo. Your dollars. Your money. Your stupidity. You bought in on the hype and hope of a promo but you were the promo. The push that is coming is happening right now. Today! By YOU. When some friendly tipster tells you they know a push is coming on some ticker, it’s time to start asking A LOT of questions before you buy unless the rumor originates from a semi-trustworthy source. Which, when considered carefully, the idea of a semi-trustworthy source is a misnomer because he/she is likely trusting an altogether un-proven, un-trustworthy source for their information. Remember, the information you receive is likely two or three steps removed from the origin. And many times the people that are the origins of information would make the devil blush. Digest this. I’m trying to help you here. This is not a friendly world. 

6. The Profit Axiom. If you’re not selling, you’re not making money. This axiom is not original with me but it is so good and true! Evaluate your trading activity over the last 2-3 months. How many bags are you holding because you were holding out for more profit? If you are holding bags that could’ve been sold for a profit, shame on you. Seriously, that’s just not good investing. The future is now. What are you waiting for? If the stock went up 300% over a period of years what would you do at the end of that time? Take profits. So why is it different for you to take profits a few days (or perhaps even hours) after you purchase a stock? Think in percentages. All pigs eventually get slaughtered. Good rule of thumb is to take some profit at 50% and some at 100% and then ride freebies. Be a disciplined person in an undisciplined world. You will win. 

7. The Matrix Axiom. Discipline your mind to think *reality* though you invest in a realm almost exclusively dominated by *perception.* Why? Because “perception” can only take you so far. It’s Wonderland! But it sure seems real for a time! It’s like the guy that married a beauty queen. His perception of her was that she was staggeringly gorgeous! But the morning after his wedding night he woke up to reality in his bed. She didn’t wake up a beauty queen! It took a lot of work! Think of the OTC as “The Matrix.” Remember when Neo would get plugged in to the Matrix and visit a world that was total perception? You need to discipline yourself to view OTC life through that mindset. It’s. Not. Real. But it feels so real to so many that perception does impact aspects of reality. What is real? Money. Numbers. People. The OTC is a world of perception that greatly impacts the real world of money and numbers. Understand which is which. Don’t confuse the two. Don’t lose yourself. Swallow the blue pill. Remember, perception eventually comes crashing down and reality wins every time. 

8. The Ebb and Flow Axiom. Think of each stock, each trend, each fad as having a window of time. Once the hub is seriously buzzing with the latest trend (such as “Q” stocks or “D” stocks) it’s time to start looking for the next “hot” thing. The essence of life is motion and change. Without motion and change there is no excitement, no buzz. Novelty rules the world. Most of these things tend to cycle. 

9. The Hero to Zero Axiom. Nobody stays hot forever (or for very long). If you think that you have found that guy who never makes a mistake, that guru, that golden goose…you have deceived yourself. If your “big gun” is currently blazing hot…ride the wave but don’t be left holding the bag. The most undisciplined investors stay dumb on purpose. Most investors are lazy. They are some of the laziest people I’ve ever met. They want to turn $1,000 into $10,000 by doing nothing but waiting a bit. And they want to find the next Jim Cramer to tell them where to put their initial $1,000. That’s lazy. But it’s not going to change. Some of the truths of these axioms rub me the wrong way as I type it, but I can’t change reality. The more that I can embrace these truths, remember them, and act by them…the better investor I will be. 

10. The Teamwork Shmeamwork Axiom. Teamwork on the OTC only works when there are positive vibes and the stock is uptrending. Why? Because those smart enough to realize the value of networking with other investors are also smart enough to realize those very same investors cannot be trusted. Private Ryan never gets searched for in the OTC war. Anyone that is pitching ideas of “nobody gets left behind” or “I will be the last one out” or “none of us are selling until $X amount” should not be trusted for long. I know this is harsh and will step on some toes. You, like me, have probably bought stock based on claims like this. But sometimes the truth hurts. I do not trade and invest to make buddies and friends. I trade and invest to make money. And as such, looking out for my own portfolio is the most significant factor when buying and selling securities. What is your most significant factor? Some of you may recoil a bit at this axiom and look for friendlier words from more cheery places. That’s okay, but please know this: The OTC is a battleground. People are fighting for money. Some people *kill* for money…so, deceiving you through kindness, notions of teamwork, or guilt-for-selling is STANDARD OPERATING PROCEDURE for more “leaders” here than you ever dared dream. Bottom line: Don’t get your need-to-belong and relational itch scratched here. Instead, find a good Bible teaching local church. 

10 More Advanced Axioms are being developed and should be posted sometime when I feel like it and/or I get enough pressure to do so.

(Photo courtesy of whowasalberteinstein.com)

10 Advanced Penny Stock Axioms 2/17/14

The pursuit for capital for my future entrepreneurship is going well. I’m applying 3 penny stock strategies with 3 different trading accounts to keep the trades straight.

+ My strategy: Penny stocks with Revenue, increased volume, current filings, technical analysis (TA) of buy, and low short selling. More is laid out on iHub.

+ Uptrend Pennies: Stock alerts from posters. TA can aid entry and exit but news is primary interest.

+ ANN Tickers: Penny stocks that reside in the AMEX, NASDAQ, and NYSE exchanges. TA is used for entry and exit.

Here are 10 Advanced OTC Axioms (a work in progress) by Vantillian at iHub. I posted his original 25 axioms a few months ago. The rest of this post is in Vantillian’s words:

I’ve already completed 25 Axioms here: iHub

If you have not done so already I would encourage you to read them as they’ve been around long enough to have a proven track record of helping investors in the online world. Here are some unsolicited testimonials:http://investorshub.advfn.com/boards/read_msg.aspx?message_id=57729224 

These new “advanced” axioms are another humble attempt to help folks that are crazy/daring/reckless/stupid enough to buy penny stocks. Why God made so many of us I’ll not know this side of heaven. wink 

I still consider myself an OTC “student” as opposed to “master”. But I’ve got several years of OTC (think “penny stock” whenever you see “OTC”) experience under my belt, some scars, a few trophies, and I’ve diligently and consistently sought to approach OTC trading and investing philosophically where using fundamental, bedrock, axiomatic truth results in the best market decisions. 

(I would exhort you to take a break if you think you’ve arrived.) 

Remember, an “axiom” is a principle or truth that stands alone without the need for proof. They just are. Abraham Lincoln might use the phrase “self-evident” to describe axiomatic truth. So, I don’t seek to present a case with well-structured arguments to “prove” these axioms…they are designed to stand alone and to either be accepted or rejected. And, if accepted, to serve as the foundation of one’s thinking and decision making on the OTC. Build your structures upon the solid ground of correct and accurate truth! Consider these axioms as sunglasses with colored lenses that will filter/color/define everything you see across the OTC landscape. We all work from mostly the same pool of facts and data…how we interpret it all makes the crucial difference. 

There will be some overlap between these axioms and the other axioms, but that’s okay. 

So, here are 10 Advanced OTC Axioms:

1. The Pigs Can Fly Axiom. Anything can run! I have basically stopped “warning” people about scammy, scummy, crummy companies because there have been several times when my warnings inadvertently kept people from making dough as the stock went through the roof. Anything can fly! The nastiest wart-covered, fat, sloppy mess-of-a-hog can grow wings if some hedge fund or some promo or some inexplicable force gets behind it. This is part of the allure of the OTC, I guess. Sometimes things happen in pennyland that leave even the most seasoned veterans slack jawed. You will never master the OTC for this reason! The law of gravity sometimes vanishes for an indeterminate amount of time but it always returns with vigor at some point. Sometimes, the really scammy companies run like the wind because you’ve got a fearless, no-conscience CEO tossing out insane revenue projections and/or fictitious buyout offers and/or anything that keeps the shiny object attractive just a little bit longer. (Also, understand that many times those posters yelling the loudest against scammy companies are trading the stock too! Perhaps it makes them feel better about their profits. Who knows. Where there is volatility, there is money to be made.) 

2. The Horse Apples Axiom. This axiom is closely related to the Pigs-Can-Fly Axiom. Realize that penny stocks are like dung. All of them. If you have chosen to buy a penny stock then you have chosen to purchase poo-poo. Now, sometimes crap can make people a lot of money (think fertilizer companies and/or Mad Max Beyond the Thunderdome), but when you position yourself to defend or support your favorite penny stock company what you have essentially chosen is to become an advocate for doo-doo. I know this is a troubling mental image but it is accurate. “Hey, it’s crap! Don’t buy it!” insists the do-good crusader. Yeah, we know. They *all* are. What matters is if it will MOVE. What matters is if there is POTENTIAL for gains/volatility there. What matters is what the masses BELIEVE. What are you going to do Captain-Save-The-Planet? Tell them how bad that poop smells compared to that not-so-bad smelling dung over yonder? 

3. The Socrates Axiom. You can’t really be sure of anything. You will become a savvier trader when you embrace this. In the perception-driven world of the OTC, I would have to agree with Socrates that purported that: “the only true wisdom is in knowing you know nothing.” (Debating whether or not you can really know for sure that you know nothing is another matter. Just work with me on this.) You can’t be sure of the share structure. You can’t be sure of that large European holder that you just *know* is waiting to sell his eleven million shares until after the stock hits a dollar. You can’t be sure of the guy/gal that gave you the tip. You can’t be sure that the numbers in the press release are correct. You can’t be sure how much stock is going to hit the street next week. Understand that non-dilutive contracts often mean absolutely nothing to these penny CEOs. Should a marketplace like this actually exist? That’s a good question, too. But for now, it does, and there is money to be made on it for those that understand it by never understanding it. 

4. The Share Swelling Axiom. Every stock gets diluted, period. If it’s not the company diluting, it’s ancient restricted shares coming off restriction. Or maybe it’s an escrow account that managed to stay hidden from the latest NOBO. Or maybe it’s an old cert some funder or accredited investor forgot about in his filing cabinet and he just found it. If it’s not one thing then it is another. There are many clever and creative means whereby the float on your cherished stock can GROW QUICKLY. Trusting that the stock’s float will remain stable is like having a tailgate party on a small lake that has quickly frozen over, inviting the entire town to come out, and trusting that the ice will hold up under the weight. Ain’t gonna happen. Sure, you’ll have a great time on the ice for awhile but something’s gonna give. When a stock is trading at a high price per share and there is liquidity at higher price ranges, the temptation is overwhelming for someone who has the power and ability to add shares to the float to do so. Oftentimes, stocks can and do go up when there is responsible dilution. And sometimes they even go up with irresponsible dilution (see Advanced Axiom #1). Penny stocks *all* dilute folks. Why would they be putting out press releases and hiring IR firms and shucking rumors if there wasn’t money to be made. And how do these companies make money? After all, they went public to raise money…and the way making money is done is through the *sale of more shares.* All of them dilute…even the ones that proclaim loudly that they are doing a share buyback. Think: how much of a buyback is it if they dilute twice as many as they buy? Maybe you’re a noobie to OTC investing and you’re thinking: “People would actually do that?” Yes, yes, YES they would do that (and they DO)! In fact, the louder the company and/or posters insist that the float is stable the more leery I become. Recently I got my butt handed to me because I neglected this axiom and boldly challenged a poster about the share structure of a stock I persisted remained unchanged. The very next day the transfer agent was called and we discovered that the scumbag CEO had diluted by about 5% of the outstanding. There’s always a reason why your favorite stock is getting buzzed about. Even if a stock’s run starts out as purely organic (which I believe can and does happen at times), understand there are forces out there that can add supply in amounts that will utterly cripple demand. 

5. The Friends and Family Axiom. Sometimes the pre-promo *IS* the promo. Do you understand what I mean by “pre-promo?” Here’s an example of what I mean: “Hey bud, head’s up on XYZX. Hearing massive push coming next week with loads of overseas money coming into it.” If you’ve been online for any amount of time you’ve likely received a private or public message similar to this! Understand that sometimes the friends and family (i.e. “pre-promo” or “pre-push”) program IS the program. In other words, sometimes YOU are the promo without knowing that you are the promo. Your dollars. Your money. Your stupidity. You bought in on the hype and hope of a promo but you were the promo. The push that is coming is happening right now. Today! By YOU. When some friendly tipster tells you they know a push is coming on some ticker, it’s time to start asking A LOT of questions before you buy unless the rumor originates from a semi-trustworthy source. Which, when considered carefully, the idea of a semi-trustworthy source is a misnomer because he/she is likely trusting an altogether un-proven, un-trustworthy source for their information. Remember, the information you receive is likely two or three steps removed from the origin. And many times the people that are the origins of information would make the devil blush. Digest this. I’m trying to help you here. This is not a friendly world. 

6. The Profit Axiom. If you’re not selling, you’re not making money. This axiom is not original with me but it is so good and true! Evaluate your trading activity over the last 2-3 months. How many bags are you holding because you were holding out for more profit? If you are holding bags that could’ve been sold for a profit, shame on you. Seriously, that’s just not good investing. The future is now. What are you waiting for? If the stock went up 300% over a period of years what would you do at the end of that time? Take profits. So why is it different for you to take profits a few days (or perhaps even hours) after you purchase a stock? Think in percentages. All pigs eventually get slaughtered. Good rule of thumb is to take some profit at 50% and some at 100% and then ride freebies. Be a disciplined person in an undisciplined world. You will win. 

7. The Matrix Axiom. Discipline your mind to think *reality* though you invest in a realm almost exclusively dominated by *perception.* Why? Because “perception” can only take you so far. It’s Wonderland! But it sure seems real for a time! It’s like the guy that married a beauty queen. His perception of her was that she was staggeringly gorgeous! But the morning after his wedding night he woke up to reality in his bed. She didn’t wake up a beauty queen! It took a lot of work! Think of the OTC as “The Matrix.” Remember when Neo would get plugged in to the Matrix and visit a world that was total perception? You need to discipline yourself to view OTC life through that mindset. It’s. Not. Real. But it feels so real to so many that perception does impact aspects of reality. What is real? Money. Numbers. People. The OTC is a world of perception that greatly impacts the real world of money and numbers. Understand which is which. Don’t confuse the two. Don’t lose yourself. Swallow the blue pill. Remember, perception eventually comes crashing down and reality wins every time. 

8. The Ebb and Flow Axiom. Think of each stock, each trend, each fad as having a window of time. Once the hub is seriously buzzing with the latest trend (such as “Q” stocks or “D” stocks) it’s time to start looking for the next “hot” thing. The essence of life is motion and change. Without motion and change there is no excitement, no buzz. Novelty rules the world. Most of these things tend to cycle. 

9. The Hero to Zero Axiom. Nobody stays hot forever (or for very long). If you think that you have found that guy who never makes a mistake, that guru, that golden goose…you have deceived yourself. If your “big gun” is currently blazing hot…ride the wave but don’t be left holding the bag. The most undisciplined investors stay dumb on purpose. Most investors are lazy. They are some of the laziest people I’ve ever met. They want to turn $1,000 into $10,000 by doing nothing but waiting a bit. And they want to find the next Jim Cramer to tell them where to put their initial $1,000. That’s lazy. But it’s not going to change. Some of the truths of these axioms rub me the wrong way as I type it, but I can’t change reality. The more that I can embrace these truths, remember them, and act by them…the better investor I will be. 

10. The Teamwork Shmeamwork Axiom. Teamwork on the OTC only works when there are positive vibes and the stock is uptrending. Why? Because those smart enough to realize the value of networking with other investors are also smart enough to realize those very same investors cannot be trusted. Private Ryan never gets searched for in the OTC war. Anyone that is pitching ideas of “nobody gets left behind” or “I will be the last one out” or “none of us are selling until $X amount” should not be trusted for long. I know this is harsh and will step on some toes. You, like me, have probably bought stock based on claims like this. But sometimes the truth hurts. I do not trade and invest to make buddies and friends. I trade and invest to make money. And as such, looking out for my own portfolio is the most significant factor when buying and selling securities. What is your most significant factor? Some of you may recoil a bit at this axiom and look for friendlier words from more cheery places. That’s okay, but please know this: The OTC is a battleground. People are fighting for money. Some people *kill* for money…so, deceiving you through kindness, notions of teamwork, or guilt-for-selling is STANDARD OPERATING PROCEDURE for more “leaders” here than you ever dared dream. Bottom line: Don’t get your need-to-belong and relational itch scratched here. Instead, find a good Bible teaching local church. 

10 More Advanced Axioms are being developed and should be posted sometime when I feel like it and/or I get enough pressure to do so.

(Photo courtesy of whowasalberteinstein.com)

Penny Stock Strategies 1/6/14

I’ll start this thought with a link to my penny stock board at iHub (28 followers so far). $Uptrend-Pennies$. I offer many posts with my ideas since April 2013. The contributors on the board bring fresh insight.

Penny stocks are defined in many ways by a great deal of different professionals and investing groups. The range I’ve seen so far is $.0001 to $10. $10 is the top of the range? This may seem odd but many stocks in the $1 to $10 range offer volatility with smaller capitalization. Many of these companies reside on the AMEX, NASDAQ, and NYSE exchanges. The OTC Markets offer penny stocks with less guidelines and filing requirements for companies struggling to meet big company status.

It is with these price ranges in mind that I offer these categories:
+ $.0001 to $.001: Bottom fishing.
+ $.001 to $.01: Sub pennies still with more interest.
+ $.01 to $1.00: Penny stock status by most.
+ $1 to $5 or $10. Penny stocks close to becoming larger cap companies.

Each of the four “levels” offer a chance to increase your investment greatly. Each has its specific risks that an investor/trader must acclimate to.

WikiHow has a very basic guide to picking penny stocks that will aid on my discussion:
+ Determine if a penny stock meets your strategy 
+ Open an account with an online brokerage
+ Understand how the OTC (over-the-counter) works
+ Investigate each company before investing
+ Purchase penny stocks with preferred methods
Tip: Buy a penny stock when a company is at IPO (initial public offering) stage

See WikiHow here Buy Penny Stocks for more info.

My thoughts:
Strategy:
+ Playing promos and alerts
+ Following a trusted group or adviser
+ Playing the charts (analysis via technical analysis)
+ Trading companies with Revenue only
+ Trading companies not on the OTC (very possible and may be more liquid)

Online brokerage:
Many exist and my favorite so far are Charles Schwab, Fidelity, and eTrade. Each has its own fee structure, tools, and mobile app features.

Understand the OTC:
I’d broaden this to understand the OTC and big board exchanges (AMEX, NASDAQ, and NYSE in the US). Much learning and research is required just to understand how these markets work.

Investigate before investing:
A very broad topic and only necessary depending on your trading/investing strategy (as noted above). Many traders call company research DD for due diligence. Company info, or lack thereof, can be a tool that sways many. Be careful of others’ DD and I always suggest verify actual pieces of info yourself. This can be time consuming and require a little investigative nature. If you follow promos, alerts, or advisor/groups you may do little to no DD due to the trust you have with your marketing source of ticker targets. Many traders use TA solely to trade tickers and ignore company info due to the thought the info is inaccurate/unverifiable anyway.

Invest with preferred methods:
This means to understand the type of trading/investing orders that can be placed. 

There are a few order types to get to know and a wealth of knowledge on when to use which order when. I simplify the process of trading penny stocks by just using a cash account (no loan/margin fees but less trades per week) and placing limit orders (very specific instructions for my order). 

Be sure to research this topic well because free discussions with your brokerage may not cover all of your situation until you start trading and learn the hard way.

Realize and research the tax consequences of trading stocks. Consult a tax expert if needed and do some tax planning. Seriously, many do this step last and don’t realize a higher tax bracket may impact all of your income for not planning or realize short versus long-term capital gains.

Summary:
I just scratched the surface of penny trading but I hope this a basic start. See my prior posts for more specific discussions, or visit me on iHub :). Being an entrepreneurly (just made that word up) minded person can help aid in the various strategy choices, successful trading choices, business/capital gain consequences, vision to make profit, and leadership/management to be successful with trading/investing. Not all can stomach the risk versus rewards offered with penny stock trading/investing.

(Photo courtesy of buypennystocks999. A few strategy discussions are here.)

Penny Stock Strategies 1/6/14

I’ll start this thought with a link to my penny stock board at iHub (28 followers so far). $Uptrend-Pennies$. I offer many posts with my ideas since April 2013. The contributors on the board bring fresh insight.

Penny stocks are defined in many ways by a great deal of different professionals and investing groups. The range I’ve seen so far is $.0001 to $10. $10 is the top of the range? This may seem odd but many stocks in the $1 to $10 range offer volatility with smaller capitalization. Many of these companies reside on the AMEX, NASDAQ, and NYSE exchanges. The OTC Markets offer penny stocks with less guidelines and filing requirements for companies struggling to meet big company status.

It is with these price ranges in mind that I offer these categories:
+ $.0001 to $.001: Bottom fishing.
+ $.001 to $.01: Sub pennies still with more interest.
+ $.01 to $1.00: Penny stock status by most.
+ $1 to $5 or $10. Penny stocks close to becoming larger cap companies.

Each of the four “levels” offer a chance to increase your investment greatly. Each has its specific risks that an investor/trader must acclimate to.

WikiHow has a very basic guide to picking penny stocks that will aid on my discussion:
+ Determine if a penny stock meets your strategy
+ Open an account with an online brokerage
+ Understand how the OTC (over-the-counter) works
+ Investigate each company before investing
+ Purchase penny stocks with preferred methods
Tip: Buy a penny stock when a company is at IPO (initial public offering) stage

See WikiHow here Buy Penny Stocks for more info.

My thoughts:
Strategy:
+ Playing promos and alerts
+ Following a trusted group or adviser
+ Playing the charts (analysis via technical analysis)
+ Trading companies with Revenue only
+ Trading companies not on the OTC (very possible and may be more liquid)

Online brokerage:
Many exist and my favorite so far are Charles Schwab, Fidelity, and eTrade. Each has its own fee structure, tools, and mobile app features.

Understand the OTC:
I’d broaden this to understand the OTC and big board exchanges (AMEX, NASDAQ, and NYSE in the US). Much learning and research is required just to understand how these markets work.

Investigate before investing:
A very broad topic and only necessary depending on your trading/investing strategy (as noted above). Many traders call company research DD for due diligence. Company info, or lack thereof, can be a tool that sways many. Be careful of others’ DD and I always suggest verify actual pieces of info yourself. This can be time consuming and require a little investigative nature. If you follow promos, alerts, or advisor/groups you may do little to no DD due to the trust you have with your marketing source of ticker targets. Many traders use TA solely to trade tickers and ignore company info due to the thought the info is inaccurate/unverifiable anyway.

Invest with preferred methods:
This means to understand the type of trading/investing orders that can be placed.

There are a few order types to get to know and a wealth of knowledge on when to use which order when. I simplify the process of trading penny stocks by just using a cash account (no loan/margin fees but less trades per week) and placing limit orders (very specific instructions for my order).

Be sure to research this topic well because free discussions with your brokerage may not cover all of your situation until you start trading and learn the hard way.

Realize and research the tax consequences of trading stocks. Consult a tax expert if needed and do some tax planning. Seriously, many do this step last and don’t realize a higher tax bracket may impact all of your income for not planning or realize short versus long-term capital gains.

Summary:
I just scratched the surface of penny trading but I hope this a basic start. See my prior posts for more specific discussions, or visit me on iHub :). Being an entrepreneurly (just made that word up) minded person can help aid in the various strategy choices, successful trading choices, business/capital gain consequences, vision to make profit, and leadership/management to be successful with trading/investing. Not all can stomach the risk versus rewards offered with penny stock trading/investing.

(Photo courtesy of buypennystocks999. A few strategy discussions are here.)

1 Year Anniversary 1/1/14

Tumblr sent me an e-mail today congratulating me on being with Tumblr for a year. Thank you all for reading my thoughts and ideas. I’ve learned a lot myself from your posts. Looking back on some accomplishments because reviewing results and celebrating success is important:

+ Attained 150 followers
+ Over 100 entries
+ Following 253 for their great insight
+ Promoted at work twice
+ Family is larger
+ Developed forum for penny stock trading
+ 8 month trading gain 646%

Goals for 2014:

+ Choose a business form for my investment base
+ Develop stronger relationships 

May all of your goals for 2014 come to fruition!

(Photo courtesy of Tumblr)

1 Year Anniversary 1/1/14

Tumblr sent me an e-mail today congratulating me on being with Tumblr for a year. Thank you all for reading my thoughts and ideas. I’ve learned a lot myself from your posts. Looking back on some accomplishments because reviewing results and celebrating success is important:

+ Attained 150 followers
+ Over 100 entries
+ Following 253 for their great insight
+ Promoted at work twice
+ Family is larger
+ Developed forum for penny stock trading
+ 8 month trading gain 646%

Goals for 2014:

+ Choose a business form for my investment base
+ Develop stronger relationships

May all of your goals for 2014 come to fruition!

(Photo courtesy of Tumblr)
Entrepreneur? 12/21/13

With all of the talk of being an entrepreneur you probably ask yourself if you are cut out to be one. Starting your own business, running it and being successful can be a challenging and rewarding journey. Entrepreneurs exhibit skills and attributes that aid during the journey.

Stephanie Vozza with entrepreneur.com offers these 10 ideas that might signal you’re not ready to be an entrepreneur:
+ Can’t stand the heat
+ You think the quest is about quick cash
+ Your ADD is in the way
+ Stage fright owns you
+ Roller coaster rides scare you
+ Complexity is cool
+ Marketing doesn’t work…
+ Easily winded
+ Not a good explainer
+ Problem passer

Of course I read these 10 signs of not being an entrepreneur and see doing the opposite as aiding in a road map to successful entrepreneurship.

Read more at http:/www.entrepreneur.com/article/230471

I came across this article by James Altucher website when searching for more entrepreneur tips. Here a few of my favorites:
+ Get a customer
+ Competition is good
+ Get sleep
+ Treat employees well
+ Always bring someone with you to a meeting

I’ve been busy with documenting my trades, technical analysis, company research, and finding networks for more trading/investing experience and business start-up. Don’t forget to visit me here at $Uptrend-Pennies$ should you have the time. 

(Photo courtesy of sachachua.com/blog.) Sachachua has some interesting notes in the little collage.

Entrepreneur? 12/21/13

With all of the talk of being an entrepreneur you probably ask yourself if you are cut out to be one. Starting your own business, running it and being successful can be a challenging and rewarding journey. Entrepreneurs exhibit skills and attributes that aid during the journey.

Stephanie Vozza with entrepreneur.com offers these 10 ideas that might signal you’re not ready to be an entrepreneur:
+ Can’t stand the heat
+ You think the quest is about quick cash
+ Your ADD is in the way
+ Stage fright owns you
+ Roller coaster rides scare you
+ Complexity is cool
+ Marketing doesn’t work…
+ Easily winded
+ Not a good explainer
+ Problem passer

Of course I read these 10 signs of not being an entrepreneur and see doing the opposite as aiding in a road map to successful entrepreneurship.

Read more at http:/www.entrepreneur.com/article/230471

I came across this article by James Altucher website when searching for more entrepreneur tips. Here a few of my favorites:
+ Get a customer
+ Competition is good
+ Get sleep
+ Treat employees well
+ Always bring someone with you to a meeting

I’ve been busy with documenting my trades, technical analysis, company research, and finding networks for more trading/investing experience and business start-up. Don’t forget to visit me here at $Uptrend-Pennies$ should you have the time.

(Photo courtesy of sachachua.com/blog.) Sachachua has some interesting notes in the little collage.

Business Ideas 11/21/13

In a busy schedule sometimes it’s tough to come up with specific business ideas to write about. You want to write about tackling a specific problem, a way to improve something, how to build better relationships, and many other pressing issues directly effecting your business. But your blog is about reaching out to customers and others to show you can help in some way…

Carol Tice with Entrepreneur.com offers 50 ideas for a business blog. I’ll touch on a few:

+ Post customer success stories with permission

+ Link ideas together to form a roundup of a centralized theme

+ Pose questions for thought generation

+ Discuss current trends

+ Display company reviews and specific service/product reviews

+ Give a behind the scenes look

+ Talk about blunders

+ Create a contest that matters

+ Give tips and tricks

+ Be inspiring

Read much more at entrepreneur.com.

Here’s a quick link about developing ideas from Colorado State University writing.colostate.edu.

(Photo courtesy of omniguides.org. A good start for developing business start up ideas.)

Business Ideas 11/21/13

In a busy schedule sometimes it’s tough to come up with specific business ideas to write about. You want to write about tackling a specific problem, a way to improve something, how to build better relationships, and many other pressing issues directly effecting your business. But your blog is about reaching out to customers and others to show you can help in some way…

Carol Tice with Entrepreneur.com offers 50 ideas for a business blog. I’ll touch on a few:

+ Post customer success stories with permission

+ Link ideas together to form a roundup of a centralized theme

+ Pose questions for thought generation

+ Discuss current trends

+ Display company reviews and specific service/product reviews

+ Give a behind the scenes look

+ Talk about blunders

+ Create a contest that matters

+ Give tips and tricks

+ Be inspiring

Read much more at entrepreneur.com.

Here’s a quick link about developing ideas from Colorado State University writing.colostate.edu.

(Photo courtesy of omniguides.org. A good start for developing business start up ideas.)

Fear 10/21/13

What is fear? Let me start with Psychology Today’s very short answer (frankly I expected a long synopsis followed by pages of research): “Fear is a vital response to physical and emotional danger—if we didn’t feel it, we couldn’t protect ourselves from legitimate threats. But often we fear situations that are far from life-or-death, and thus hang back for no good reason. Traumas or bad experiences can trigger a fear response within us that is hard to quell. Yet exposing ourselves to our personal demons is the best way to move past them.”

Read more at Psychologytoday.com. Is there more?

We all have fears. The question is do your fears control you or do you accept them and power on through? I’m afraid of so many things that I often wonder how I made it to work after an hour commute. Will my tire blow out while driving in the rain? Will that 18-wheeler see me while zooming past me 20mph faster than the speed limit? Will the sheriff be radaring today (kudos to you if you always do the speed limit)? These simple fears are easily forgotten while coasting down the road with experience on my side that tells me I can slow down, steer where is needed to avoid hazards, and to simply brake or change routes should hazards present to impede my progress.

Fabienne Fredrickson with Forbes discusses four ways to conquer business fear:
+ Instead of excuses choose to do what others do not want to do 
+ The best way to conquer fear is to walk straight through it and just do
+ Do things outside your comfort zone and achieve results
+ Choose action instead inaction.

Read more at Forbes.

(Photo courtesy of rebelbrown.com.)

Fear 10/21/13

What is fear? Let me start with Psychology Today’s very short answer (frankly I expected a long synopsis followed by pages of research): “Fear is a vital response to physical and emotional danger—if we didn’t feel it, we couldn’t protect ourselves from legitimate threats. But often we fear situations that are far from life-or-death, and thus hang back for no good reason. Traumas or bad experiences can trigger a fear response within us that is hard to quell. Yet exposing ourselves to our personal demons is the best way to move past them.”

Read more at Psychologytoday.com. Is there more?

We all have fears. The question is do your fears control you or do you accept them and power on through? I’m afraid of so many things that I often wonder how I made it to work after an hour commute. Will my tire blow out while driving in the rain? Will that 18-wheeler see me while zooming past me 20mph faster than the speed limit? Will the sheriff be radaring today (kudos to you if you always do the speed limit)? These simple fears are easily forgotten while coasting down the road with experience on my side that tells me I can slow down, steer where is needed to avoid hazards, and to simply brake or change routes should hazards present to impede my progress.

Fabienne Fredrickson with Forbes discusses four ways to conquer business fear:
+ Instead of excuses choose to do what others do not want to do
+ The best way to conquer fear is to walk straight through it and just do
+ Do things outside your comfort zone and achieve results
+ Choose action instead inaction.

Read more at Forbes.

(Photo courtesy of rebelbrown.com.)

Business From Scratch 10/9/13

Ever dream of starting your own business? One of the challenges for many is the lack of capital, start-up funds, mulla, $$$, cash, coin, or cash flow. 

Smarta.com offers these cheap ideas to start a business:
+ Use eBay or Amazon to trade or sell items.
+ Sell photography you shoot
+ Become a personal chef
+ Become an antique expert and sell your knowledge
+ Start a snack stall in a mall or busy business area
+ Create a cleaning company and provide the service
+ Grow a garden and sell your goods
+ Meal delivery service
+ Pet training and walking
+ Event planner
+ Tutor others 
+ Create a handyman business

Read more at smarta.com.

Loic Le Meur on LinkedIn offers these 10 tips for doing nothing to start a business. By nothing he means having fun and not working: 
+ Get fresh air- meetings inside can stifle creativity
+ Use your idea- it doesn’t have to be life altering
+ Passion over profit is key
+ Your ideas might be useful in ways you didn’t imagine
+ Your friends can be a great resource for learning 
+ Go do despite resistance from others
+ Share your ideas to test traction
+ Live and breathe your products/service in your own life
+ Passion, value and customer happiness are key over being big to succeed
+ Launch- launch now! Making mistakes is part of the process and possible success you will earn.

Read more at Loic Le Meur; 10 ways you can start your own business doing nothing.

Ok, so we have some ideas for a start-up on limited funds and inspiration to just launch. Stephanie Clifford with Inc. discusses 7 lessons from start-up entrepreneurs who had $2,000 or less to utilize.
- Brand creatively
- Switch business models frugally
- Work from home
- Get paid up front
- Use cheap online tools
- Get suppliers to find you
- Know your customers well

Read more at inc.com. Each if the 7 stories is important to read on an individual basis.

(Photo courtesy of americancupcakeabroad.com. Read the review and possibly the book for business start-up basics and inspiration.)

Business From Scratch 10/9/13

Ever dream of starting your own business? One of the challenges for many is the lack of capital, start-up funds, mulla, $$$, cash, coin, or cash flow.

Smarta.com offers these cheap ideas to start a business:
+ Use eBay or Amazon to trade or sell items.
+ Sell photography you shoot
+ Become a personal chef
+ Become an antique expert and sell your knowledge
+ Start a snack stall in a mall or busy business area
+ Create a cleaning company and provide the service
+ Grow a garden and sell your goods
+ Meal delivery service
+ Pet training and walking
+ Event planner
+ Tutor others
+ Create a handyman business

Read more at smarta.com.

Loic Le Meur on LinkedIn offers these 10 tips for doing nothing to start a business. By nothing he means having fun and not working:
+ Get fresh air- meetings inside can stifle creativity
+ Use your idea- it doesn’t have to be life altering
+ Passion over profit is key
+ Your ideas might be useful in ways you didn’t imagine
+ Your friends can be a great resource for learning
+ Go do despite resistance from others
+ Share your ideas to test traction
+ Live and breathe your products/service in your own life
+ Passion, value and customer happiness are key over being big to succeed
+ Launch- launch now! Making mistakes is part of the process and possible success you will earn.

Read more at Loic Le Meur; 10 ways you can start your own business doing nothing.

Ok, so we have some ideas for a start-up on limited funds and inspiration to just launch. Stephanie Clifford with Inc. discusses 7 lessons from start-up entrepreneurs who had $2,000 or less to utilize.
- Brand creatively
- Switch business models frugally
- Work from home
- Get paid up front
- Use cheap online tools
- Get suppliers to find you
- Know your customers well

Read more at inc.com. Each if the 7 stories is important to read on an individual basis.

(Photo courtesy of americancupcakeabroad.com. Read the review and possibly the book for business start-up basics and inspiration.)

Business Plan 10/3/13

Creating a business plan can be the first step in organizing your efforts to starting a business. Brainstorming ideas, researching, and documenting what you will do solidifies a guide for your journey through possible experiences you’ve never done and let’s other stakeholders know your plans.

Teach A CEO at CEOblognation.com offers a great starting guide for business plan creation. The elements of the plan discussed include:

+ Executive Summary: includes a mission statement, company description, growth highlights, products/services offered, financial info, and a summary of future plans.

+ Business Info: nature if business, business structure, goals and objectives, target market, industry, and strengths and weaknesses.

+ Products and/or services: descriptions, life cycles, intellectual property, and research and development activities.

+ Market activities and competitors: industry description and outlook, target market, competitive analysis, and regulations.

+ Marketing strategy: how products/services will benefit customers, pricing strategy, sale and distribution plan, and customer transaction process.

+ Operational plan: discussion of short and long-term actions that describe goals and processes to be done in daily operations.

+ Management and organization structure to discuss your team and how they will work together.

+ Overall schedule to quickly show milestones to be achieved for goal attainment and product/service offerings scheduling.

+ Critical risks and problems anticipated and how your company will deal with these challenges.

+ Personal financial statements to calculate what your worth and how the company is valued.

+ Financial history can include projections or prior history that shows a track record financially.

+ Financial Plan to show how the company, industry, target market and other variables have done historically while projecting what will occur financially and how to deal with challenges. 

+ Technology Plan to lay out what technology is needed and how it will be used.

+ Appendix containing documents, explanations, and exhibits to substantiate the parts of the business plan.

Read more at ceoblognation.com.

The Small Business Association offers a business plan guide here  SBA.

Entrepreneur.com weighs in on the business plan basics here entrepreneur.com.

(Photo courtesy of Core77.)

Business Plan 10/3/13

Creating a business plan can be the first step in organizing your efforts to starting a business. Brainstorming ideas, researching, and documenting what you will do solidifies a guide for your journey through possible experiences you’ve never done and let’s other stakeholders know your plans.

Teach A CEO at CEOblognation.com offers a great starting guide for business plan creation. The elements of the plan discussed include:

+ Executive Summary: includes a mission statement, company description, growth highlights, products/services offered, financial info, and a summary of future plans.

+ Business Info: nature if business, business structure, goals and objectives, target market, industry, and strengths and weaknesses.

+ Products and/or services: descriptions, life cycles, intellectual property, and research and development activities.

+ Market activities and competitors: industry description and outlook, target market, competitive analysis, and regulations.

+ Marketing strategy: how products/services will benefit customers, pricing strategy, sale and distribution plan, and customer transaction process.

+ Operational plan: discussion of short and long-term actions that describe goals and processes to be done in daily operations.

+ Management and organization structure to discuss your team and how they will work together.

+ Overall schedule to quickly show milestones to be achieved for goal attainment and product/service offerings scheduling.

+ Critical risks and problems anticipated and how your company will deal with these challenges.

+ Personal financial statements to calculate what your worth and how the company is valued.

+ Financial history can include projections or prior history that shows a track record financially.

+ Financial Plan to show how the company, industry, target market and other variables have done historically while projecting what will occur financially and how to deal with challenges.

+ Technology Plan to lay out what technology is needed and how it will be used.

+ Appendix containing documents, explanations, and exhibits to substantiate the parts of the business plan.

Read more at ceoblognation.com.

The Small Business Association offers a business plan guide here
SBA.

Entrepreneur.com weighs in on the business plan basics here entrepreneur.com.

(Photo courtesy of Core77.)

I’m still making postings on my iHub board. I try to document my trades, and my Targets and Watches, so you and I can learn from the experiences. I try to post other penny stock content also.

If you look at my profile on iHub you can see the many other boards I post at and my post content outside my board.

Happy trading!

Hot Online Industries 9/17/13

Deciding what to do as an entrepreneur can be daunting. Perhaps a glimpse of the hottest industries might spark a unique idea? Maybe you’re a manager at your organization and your looking for a new direction within your current industry. Perhaps industry analysis will aid in a new path?

Catherine Clifford with Entrepreneur Daily offers these 8 hot online industries for analysis: 
+ Social network game development
+ Online shoe sales
+ TV and home theater installation
+ Virtual data rooms
+ Online travel agencies
+ Translation services
+ IT security consulting
+ Digital forensic services

Each of these online industries are seeing astonishing growth year over year. Gather some tech friends and develop games for social network platforms and mobile devices or enter the virtual data room industry that has low entry costs. Love shoes? Take that unique shoe idea and compete against Zappos and a few other large competitors who only make up 16% of the online shoe market. Take advantage of ever changing technology for home theaters while providing unique service. Online travel is expected to oust store front travel sites while taking advantage of the economic recovery. Know a few languages? Use your communication abilities to join businesses in other countries. Are you an IT specialist? Perhaps a new IT security service can be provided to counter the growing corporate hacking. 

Read more at Entrepreneur.com.

During an MBA program a student is exposed to five-forces, SWOT, and the BCG portfolio mix concepts for industry analysis. Rita McGrath with the Harvard Business Review offers a new spin on industry analysis- fragmenting market segments. Rita’s examples include Netflix creating its own shows or Best Buy providing medical analysis. Industry experts can develop blind spots to new competitors and competition entering their industry looking to fragment and supplement business with many pools of income sources. The trick is to combine industry experts from various industries to innovate and generate new ideas for new market segments via fragmentation of many existing market segments into new segments.

Read more at HBR blogs.

For fun here are the classical industry analysis models:
- Porter’s Five Forces at mindtools.com
- SWOT analysis at businessballs.com
- BCG Matrix at managementstudyguide.com

(Photo courtesy of EU Starch Industry.)

Hot Online Industries 9/17/13

Deciding what to do as an entrepreneur can be daunting. Perhaps a glimpse of the hottest industries might spark a unique idea? Maybe you’re a manager at your organization and your looking for a new direction within your current industry. Perhaps industry analysis will aid in a new path?

Catherine Clifford with Entrepreneur Daily offers these 8 hot online industries for analysis:
+ Social network game development
+ Online shoe sales
+ TV and home theater installation
+ Virtual data rooms
+ Online travel agencies
+ Translation services
+ IT security consulting
+ Digital forensic services

Each of these online industries are seeing astonishing growth year over year. Gather some tech friends and develop games for social network platforms and mobile devices or enter the virtual data room industry that has low entry costs. Love shoes? Take that unique shoe idea and compete against Zappos and a few other large competitors who only make up 16% of the online shoe market. Take advantage of ever changing technology for home theaters while providing unique service. Online travel is expected to oust store front travel sites while taking advantage of the economic recovery. Know a few languages? Use your communication abilities to join businesses in other countries. Are you an IT specialist? Perhaps a new IT security service can be provided to counter the growing corporate hacking.

Read more at Entrepreneur.com.

During an MBA program a student is exposed to five-forces, SWOT, and the BCG portfolio mix concepts for industry analysis. Rita McGrath with the Harvard Business Review offers a new spin on industry analysis- fragmenting market segments. Rita’s examples include Netflix creating its own shows or Best Buy providing medical analysis. Industry experts can develop blind spots to new competitors and competition entering their industry looking to fragment and supplement business with many pools of income sources. The trick is to combine industry experts from various industries to innovate and generate new ideas for new market segments via fragmentation of many existing market segments into new segments.

Read more at HBR blogs.

For fun here are the classical industry analysis models:
- Porter’s Five Forces at mindtools.com
- SWOT analysis at businessballs.com
- BCG Matrix at managementstudyguide.com

(Photo courtesy of EU Starch Industry.)