I have a series of publications and websites that I enjoy reading on a daily basis for both personal and professional reasons. One of those is the world famous Wall Street Journal which discusses the world of finance in a very candid manor. For those of you who may not have read it in the past its definitely something I recommend you check out if you are looking to stay in tune to the financial world around you. From time to time they also discuss more exotic topics and in this case they did an entire expose on penny auctions. Towards the end of the article they feature a Phoenix, Arizona lawyer Stephen Silverman whom has (in his own words) managed to win more than 90% of the penny auctions that he enters.
For those of you who might be interested in reading the article you can so by clicking here. It is a free article so even those without a subscription will be able to read the entire thing. The piece that I am most interested in discussing is the strategy that Mr. Silverman says he uses which is as follows.
His strategies include not jumping in too early, and knowing when to start bidding aggressively using the site’s automatic bidding mechanism, which places a predetermined number of bids in the last 20 seconds
Whats most interesting is that this is much the same strategy that I advocate my users use when they partake in a penny auction. The concept is simple and all it means is that you have to stay patient. You cannot jump at the first ripple of action, but you have to know when to turn up the heat so that you can walk away a winner in the end. Couple this with proper market research and you should find yourself a winner more often than a loser.
In an industry that is so often written about by those who have never had the opportunity to partake in an auction it is refreshing that the WSJ were able to provide such a top notch effort in regards to the sector. Obviously their is a risk involved but at the end of the day anything worth having is worth risking something for. Am I right? So go ahead and give the article a read and be sure to leave a comment below letting us know what you think. Because while we do have affiliations with several auction sites (thats how we pay our rent around here) our goal is also to educate those who might be looking to jump into the arena.