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           You must be able to determine when you are wrong and admit that it's going to happen 50% of the time or
    more.  Finding a strategy that works all the time is simply not realistic.  We must be ready to change our
    parameters on any day of the week and be willing to stick to our fundamental philosophy.  We know that we
    cannot forecast the market, however we know what to do and how to react when any situation is thrown at us.

          Instead of focusing on what kind of investor you are, try to become an all-term investor.  We are not looking for
    any specific time horizons with our penny stock portfolio, or any portfolio for that matter.  We are simply trying to
    set ourselves up for possible gains while preserving our total capital.  It is important to seek out all forms of
    investing including long, mid and short-term strategies.  We feel that by knowing when a long term trend is
    changing we can be prepared for short term profits.  Today, overseas, the Nikkei average rose to it's highest
    levels in almost three years, how would you react to this if you were a long term investor following the Dow Jones
    Industrial Average?  Also this mornings futures appear to be lower and slowly adding to their losses, how would
    you react if you were a pure day trader to such a short term indicator?  The Russell 2000 only rose modestly
    compared to the rest of the market yesterday afternoon, how would mid-term investors react?  Only by knowing as
    much as possible about what other people think can you gain the all-term advantage.  When evaluating penny
    stocks, other than fundamental and technical analysis, crowd psychology can play just as important of a roll.  
    Think of a penny stock as a product that is being marketed to the public and how they are likely to react.
          Don't be afraid to get away from the screen once in a while if lightly traded issues bore you.  Anything else you
    can do will be more productive like reading a paper or researching.  Coming home to a stock that is down 20% or
    more is simply another buying opportunity.  With a diverse portfolio such as ours devastating news in one security
    will not be devastating to our bottom line at all.

           Wall street says stocks that are moving down will continue to move down and stocks that are moving up will
    continue to move up.  Fortunately we know that stocks that are moving up are overpriced and stocks that are
    moving down are cheap.  Stocks with improving fundamentals and decreasing price are the best buys.  When a
    stock falls into new low territory, expect it to continue down as investors continue to dump expecting lower prices
    to come.  This explains why good news doesn't move these stocks and our open mindedness gives us a distinct
    advantage.  Only after a stock has broken into new highs will investors come back, our goal is to be several steps
    ahead and with a broad portfolio we stand a better chance.