[Quick Post] MicroCaps, The Market and Conviction

What a crazy week on the SPY and for MicroCaps: There is a key lesson we can take out of this week for successful microcap investing that is worth sharing.

Monday morning you didn't see me selling, emailing, or reacting to mainstream media. If I had the available cash I would have been a net buyer as I stated in my updates earlier this week.

Mainstream media (CNBC, Bloomberg) even Twitter and Social Media at points can seriously affect our drive and focus as investors. Does a 1000 point overreaction or even worthy drop on the DOW change the thesis of our several MicroCap investments, not a chance.

MicroCaps with little institutional ownership are not affected by Wall St, since the latter cant sell what they don't own. Granted, some do swing if retail or holders do sell, but this offers generous opportunities for MicroCap investors.

I made it a point not to sell or trade on Monday - since I want my members to focus more on my research and make their own decisions.

I have not watched mainstream media in 3 years, and there is value in not watching it.

1) Everything on Mainstream media is old news to the MicroCap investor who is researching
2) Usually its an over or under reaction, and holds little value
3) Usually emotional and not quantitative
4) Detracts from research and can lead you to sell positions whose thesis' has not changed.

5) Leads to group think instead of self-think

Hold your convictions and stick to your plan. Always remember that a change in price is not a change in the story, but the former can offer a serious buying opportunity.

On days like Monday, either buy or hit the beach in my opinion. Both are safer bets most of the time than sweating at your desk.

Focus on finding the best MicroCaps before anyone else does and energize your MicroCap investing strategy by taking advantage of days like Monday where the world goes crazy. Micro and Nano-cap investing is very far from mainstream investing due to size and coverage, so take advantage of being far from Wall St (for now)

This is just a short-and-sweet post to reflect on this week. Members, please post your comments on our latest report on AcuityAds, and our recorded CEO interview here. I am interested on whether you liked this shorter blog post, or our research reports better (example, SMTP).

Non-members can enter our 14-day FREE membership lottery here

Back to researching,


Posted to SecretCaps on Aug 26, 2015 — 12:08 PM
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