There are many investment strategies used in the m
Post# of 11899
There are many investment strategies used in the market. There is not only one method that makes sense. Some choose to scalp, flip, trade or invest long term but each style is up to the individual and how it best suites their needs as a market participant. Personally I see flipping in a highly volatile, illiquid sub penny stock as very very risky. But if you think you can do it consistently for great gains then by all means, have at it. I for one though would not suggest others should engage in it, but I do day trade currencies, it depends on the investment vehicle. Just as likely in your scenario is a flipper buying at .0011 then getting stopped out at .0009, stock moves back up to .0013 and the flipper buys on the upward move then gets stopped out at .0011, gets back in at .0008 and gets stopped out at .0007, etc etc etc. Do the math for those potentialities. I have personally witnessed day traders getting caught up in a bad run of luck and just have loss after loss and cannot seem to win, the losses add up very quickly!
Many automatically assume there is more risk in holding for longer period of times, and while it is true that the investor will probably be subject to more volatility over longer periods of time, its also true that the number of different price points the investor is exposed to in order to buy more shares can be greater therefore allowing the long to continue to build a position with a better price average over a long period of time, so long as the investor keeps dry powder. As for the flipper, because it is intended to be a temporary trade, all the capital used on the position must be thrown in at relatively close price points which is just like throwing darts at a board. I wish the flippers luck, they are going to need it. However I would still agree that at par value for the stock, $0.001, the risk/reward for the potential for the RFMK investment seems to be pretty good. Just my opinions.
Do or do not, there is no try.
$RFMK