Mitigating investment risk Not investment advic
Post# of 1584
Posted On: 08/31/2016 1:05:45 AM
Mitigating investment risk
Not investment advice
Ever notice the odd trend in these boards of investors bragging that they own millions of shares and keep buying more and more on the dips? Isnt the point of investing to make profits and NOT buying these so called 'gift shares' at cheaper and cheaper prices? What's the point in owning a billion shares when they keep averaging down??
Instead of owning stock in one company and continually buying on the dips, spread out the risk.
After doing extensive DD and by only investing what you can afford to lose:
Note
All of the following numbers/prices are pure examples.
1. Purchase stock in a company with a share price of around .01 cent, which is current with their SEC filings, has had a recent PR, and has a product that FILLS A CURRENT NEED.
2. Purchase stock in a company with a share price of around .002 which is current with their SEC filings, has had a recent PR, and has a product that FILLS A CURRENT NEED.
3. Purchase stock in a company with a share price of around .0002 which is current with their SEC filings, has had a recent PR, and has a product that FILLS A CURRENT NEED.
By investing at .002 and .0002, you invest with minimal cash yet have the highest risk/reward potential. $100 gets you 50,000/ and 500,000 shares respectively.
Because we didnt invest more than we can afford to lose, if these stocks fail, oh well. No big deal. But if the .002 or.0002 stocks spikes in price, you can reinvest those earnings into the first company.
I call this method Pyramid Stacking. Company A is at the top. This is your serious, long term investment and will typically have the most expensive share price.
Companies B and C will be higher risk/reward with much lower share prices.
By using this menthod you spread out the risk. If company A fails, you still have B and C. If B fails, you still have A and C. If C fails, you still have A and B.
But if you instead invest in only one company and that one company fails... you automatically lose EVERYTHING all at once.
Example
Right now, my serious investment is SCIE. But I am pyramid stacking my serious investment with BSSP.
BSSP is extremely high risk/high potential (they are working on becoming current), but if this works out, I will be able to reinvest profits from BSSP into my serious, long term SCIE investment. Seeing I did not invest more than I can afford to lose, if both fail... oh well, no big deal.
Not investment advice. This is NOT investment advice.
Not investment advice
Ever notice the odd trend in these boards of investors bragging that they own millions of shares and keep buying more and more on the dips? Isnt the point of investing to make profits and NOT buying these so called 'gift shares' at cheaper and cheaper prices? What's the point in owning a billion shares when they keep averaging down??
Instead of owning stock in one company and continually buying on the dips, spread out the risk.
After doing extensive DD and by only investing what you can afford to lose:
Note
All of the following numbers/prices are pure examples.
1. Purchase stock in a company with a share price of around .01 cent, which is current with their SEC filings, has had a recent PR, and has a product that FILLS A CURRENT NEED.
2. Purchase stock in a company with a share price of around .002 which is current with their SEC filings, has had a recent PR, and has a product that FILLS A CURRENT NEED.
3. Purchase stock in a company with a share price of around .0002 which is current with their SEC filings, has had a recent PR, and has a product that FILLS A CURRENT NEED.
By investing at .002 and .0002, you invest with minimal cash yet have the highest risk/reward potential. $100 gets you 50,000/ and 500,000 shares respectively.
Because we didnt invest more than we can afford to lose, if these stocks fail, oh well. No big deal. But if the .002 or.0002 stocks spikes in price, you can reinvest those earnings into the first company.
I call this method Pyramid Stacking. Company A is at the top. This is your serious, long term investment and will typically have the most expensive share price.
Companies B and C will be higher risk/reward with much lower share prices.
By using this menthod you spread out the risk. If company A fails, you still have B and C. If B fails, you still have A and C. If C fails, you still have A and B.
But if you instead invest in only one company and that one company fails... you automatically lose EVERYTHING all at once.
Example
Right now, my serious investment is SCIE. But I am pyramid stacking my serious investment with BSSP.
BSSP is extremely high risk/high potential (they are working on becoming current), but if this works out, I will be able to reinvest profits from BSSP into my serious, long term SCIE investment. Seeing I did not invest more than I can afford to lose, if both fail... oh well, no big deal.
Not investment advice. This is NOT investment advice.
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ALL OF MY STATEMENTS, including but not limited to, POSTS, MESSAGES, PRIVATE MESSAGES, and RESPONSES are NOT advice, and are NOT designed to substitute the expertise and judgment of a professional. It is your responsibility to seek investment advice during all stages of your investments. It is your responsibility to evaluate the accuracy, completeness and usefulness of the information in the above post.
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My posts are NOT investment advice. I am not paid to post.
There is no correlation between the number of posts I write per day and your assumed success of a company.
It is NOT my responsibility to inform you of my own personal investment decisions.
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I have no control over, and am not responsible for the actions of others who copy, store, edit, change, prepare any derivative work of or alter in any way any of the content provided in my posts.
Errors and Omissions expected. The writer of the above post accepts no liability or responsibility for any errors or omissions contained in the above post or contained within this Disclaimer.
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The writer of the above post makes no warranties or representations, express or implied about such linked websites, the third parties they are owned and operated by, or the information contained on these websites.
The writer of the above post accepts no liability for any damage or loss, however caused, in connection with the use of or reliance on any information, material, products, or services contained on or accessed through any such linked websites.
There is a VERY HIGH degree of RISK involved in trading and investing. Only invest what you can afford to lose.
http://investorshangout.com/Joeys-Investment-Board-91611/
Invite Only
There is a VERY HIGH degree of RISK involved in trading and investing. Only invest what you can afford to lose.
Disclaimer:
As used herein, the terms "You" and "Your" shall mean you, individually, the reader, and each other party on whose behalf you may use the contained information at any time.
All references to "My", "I", and “The writer of the above post” shall refer to the creator of the username Joey68.
Do NOT invest unless you are prepared to sustain a total loss of the money you have invested plus any commission or other transaction charges.
There is a very high degree of risk involved in trading and investing. Past results are not indicative of future returns. I assume no responsibility for your trading and investment results. You should NOT rely on the information in the above post to make any decision or take any action.
ALL OF MY STATEMENTS, including but not limited to, POSTS, MESSAGES, PRIVATE MESSAGES, and RESPONSES are OPINION and NOT fact and are for entertainment purposes only. Do your own research and make your own decisions based on your own conclusions.
ALL OF MY STATEMENTS, including but not limited to, POSTS, MESSAGES, PRIVATE MESSAGES, and RESPONSES are NOT advice, and are NOT designed to substitute the expertise and judgment of a professional. It is your responsibility to seek investment advice during all stages of your investments. It is your responsibility to evaluate the accuracy, completeness and usefulness of the information in the above post.
I am NOT a professional.
I do NOT work for you.
My posts are NOT investment advice. I am not paid to post.
There is no correlation between the number of posts I write per day and your assumed success of a company.
It is NOT my responsibility to inform you of my own personal investment decisions.
It is NOT my responsibility to inform you when it is time for you to buy, hold, and/or sell a position.
I have no control over, and am not responsible for the actions of others who copy, store, edit, change, prepare any derivative work of or alter in any way any of the content provided in my posts.
Errors and Omissions expected. The writer of the above post accepts no liability or responsibility for any errors or omissions contained in the above post or contained within this Disclaimer.
The writer of the above post shall NOT accept any liability for the accuracy or completeness of the information contained in the above post, for any reliance placed by any person on the information contained in the above post, or for any damage or loss, however caused, in connection with the use or reliance on any information contained in the above post.
The above post may contain links to websites owned and operated by third parties. These links are provided for informational purposes only and are NOT endorsed by the writer of the above post. The writer of the above post has no control over the contents of any linked website and bears no responsibility for the accuracy, legality, or content of the external site or for that of subsequent links.
YOU ACCESS ALL LINKS ENTIRELY AT YOUR OWN RISK.
The writer of the above post makes no warranties or representations, express or implied about such linked websites, the third parties they are owned and operated by, or the information contained on these websites.
The writer of the above post accepts no liability for any damage or loss, however caused, in connection with the use of or reliance on any information, material, products, or services contained on or accessed through any such linked websites.
There is a VERY HIGH degree of RISK involved in trading and investing. Only invest what you can afford to lose.
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