Investing using the 'Rule of Numbers' method: Let's say

New Post Public Reply Private Reply Replies (0) Message Board
joey68
Investing using the 'Rule of Numbers' method:

Let's say Joe Bob has $1000 to invest in the market. Its not more than he can afford to lose, and any losses wouldn't affect his standard of living.

Joe Bob is somewhat new to investing but he wants to invest with the hopes of at least doubling his money.

Using the 'Rule of Numbers' method, Joe Bob would invest $900 in 9 different companies. Why $900 and not $1000? Simple. Fees. The average cost of each transaction is $10, so if he has $1000 to spend, $100 is actually paying for the purchase leaving him with $900 to invest.

You see, he could invest $990 in one company (minus $10 fee), hope for the best, and see where it goes. If it was a great investment, he could make a pretty good return on his initial investment.

But.. and theres a big 'but' here..


If he invested his entire balance in one stock, and that stock fails, does a reverse split, goes under, ends up being a pump and dump, etc etc.. he just lost $990 in one fell swoop.

On the other hand, with the 'Rule of Numbers' method, investing in 9 different companies allows room for error, poor DD, failed companies, etc etc.

Example:

Stock ABCD is selling at .0005. Joe Bob wants to invest his entire $990 in it. He has a great feeling. Lots of hype brewing in the investment forums online. People promising 'too the moon!'.

After fees, he would own 1,980,000 shares. Sounds great! To double his initial investment, the share price has to go to just over .001. Possible? Of course. anything is possible in the OTC.

On the other hand, if he invests $900 (minus fees) in 9 different companies and theyre all at .0003:

Each company would equate to 333,333 shares. In total, Joe Bob would own 2,999,997 shares; that's 1,019,997 MORE shares than if he invested in only one company for only $90 more.

See where I'm going with this?

Now lets say Joe Bob simply sucks at picking good stocks and 6 of his 9 investments fail leaving him with only 3 stocks which are about to move up:

Stock 1 goes from .0003 to .001. $333 profit
Stock 2 goes from .0003 to .005. $1,666 profit
Stock 3 goes from .0003 to .014. $4,666 profit

After selling, Joe Bob has $6,665 in his account.

Here's the best part:

Even though SIX of joe Bob's investments failed, he still was able to pull off a profit. Seeing he's not very good at picking good stocks, which scenario do you think is better for him?.. Invest everything in ONE company? Or invest in several.

This method also makes the most of our time. Instead of investing in one company and waiting for PR's and updates, by investing in several companies with several different time tables, it affords us the opportunity to possibly experience more PR's and progress for the same amount of time.

Obviously, the 'Rule of Numbers' method doesn't guarantee profits. All 9 companies could fail. Anything can happen in the stock market. But by doing DD, heavily researching each company, contacting the companies and asking questions, by NOT investing more than he can afford to lose, and by investing in more than one company, he provides himself a cushion.

Note:
All of these numbers are examples. It would work by investing in two companies instead of just one. That's the great thing about investing. It can be tailored to our individual needs and resources.

Note2:
I believe many investors do not want to take the time to research several companies and would rather risk their entire investment in one stock.

Not investment advice. Investing is RISKY and you can LOSE IT ALL IN A SINGLE DAY!!
View My Board Here:
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.
Scroll down for more posts ▼

Top 10 Most Recent News Articles

Step Inside Henson's Creature Shop Magic in NYC

Updated Category News Views 8

Unlock Puppet Magic with Jim Henson Tours Puppet fans, let me tell you, there's something going on in Queens, NY that's got both nostalgia and innovation scribbled all over it. We're talking about the legendary Jim Henson's Creature Shop opening its doors. If you're looking to relive the magic that helped shape a generation, get ready to dive into a world where creativity...

Continue Reading
Streamlined AI Video Analytics for Public Safety Unveiled

Updated Category News Views 2

AI Without the Headache Alright folks, IREX is shaking things up, and not in the usual iterative, bit-by-bit tech progression way. StreamVLM™ has been rolled out as the world's first vision-language model (VLM) analytics engine tailored for the public safety sector—specifically, for cloud platforms. I’ve been around the block enough times to spot a significant shift...

Continue Reading
Lick the Plate Hits 2,000 Shows with Clown Band

Updated Category News Views 5

They say good things come in bizarre packages, and that's exactly the case as David Boylan's Lick the Plate zany celebration marks 15 years on air with its 2,000th episode. If you think of radio as a predictable endeavor, well, you're not tuned into Lick the Plate. A Milepost Draped in Multicolored Fabrics When you're browsing through colorful avenues of radio fame, it's...

Continue Reading
Intus Bio Secures $2.7M for Colorectal Cancer Test

Updated Category News Views 4

Pioneering Efforts in Early-Onset Colorectal Cancer Detection The battlefield of colorectal cancer prevention just got a serious upgrade with Intus Bio grabbing a $2.7 million award. This ain't just pocket change—it's a shot at rewriting the script on how we approach early-onset colorectal cancer, the pesky number one cancer gnawing at the under-50 crowd. Partnering...

Continue Reading
Oil Markets Shift Focus: Pipelines Trump Drilling

Updated Category News Views 5

Decoupling Oil Price and Production Response This oil market isn’t your usual rodeo. With Brent flirting with $100, it’s a seismic shift that’s not yielding new drills but redirecting capital to the existing infrastructure landscape. Ask yourself why we're not seeing the usual cavalry charge of new rigs. It’s simple: Pipeline mileage and producing wells have...

Continue Reading
Crystal Risotti: Leading IT Compliance in Healthcare

Updated Category News Views 6

A Journey Marked by Dedication and Expertise In the demanding world of healthcare technology, where regulations can make or break a company, Crystal Risotti has carved out a space for herself as a leader. Over the last 30 years, she's developed a reputation for blending regulatory expertise with practical business strategies. Her recognition as a Pinnacle Professional of...

Continue Reading
Bitwise Pulls Plug on Dogecoin ETF Amid Market Risks

Updated Category News Views 8

Bitwise Ditches Dogecoin ETF: End of a Speculative Era Who knew that a digital asset inspired by an internet meme would get a platform on Wall Street? Well, Bitwise did. They rallied behind Dogecoin, launching the Bitwise Dogecoin ETF, ticker BWOW. But as of September 10, 2026, the fund's journey is coming to an end with liquidation just around the corner. What Sparked...

Continue Reading
XKL Delivers MediaLight for High-Speed Optical Transport

Updated Category News Views 5

Unpacking the MediaLight Launch Kicking off September, XKL is tossing its hat in the ring with the MediaLight Xponder and Muxponder systems. These aren't just any run-of-the-mill gizmos—nope, they're touted as top-of-the-line optical transport solutions. The talk of the town is their ability to dish out high-density 100G and 400G transport, and for geeks in the trade,...

Continue Reading
Seismic Pharma Kicks Off Phase 3 Trial for Istaroxime

Updated Category News Views 4

Seismic Sets the Stage for a Medical Milestone From the heart of biotech in Durham, North Carolina, seismic waves ripple through the medical community as Seismic Pharmaceuticals embarks on a high-stakes adventure. It's official: they've enrolled their very first patient in the global Phase 3 trial of istaroxime, targeting the grim specter known as cardiogenic shock. You...

Continue Reading
Fermi's Founder Pushes for Board Overhaul: What's Next?

Updated Category News Views 2

Fermi's Roller Coaster: A Founder’s Stand Seems like Fermi Inc. is on a wild ride through the business landscape, and it's giving shareholders more whiplash than satisfaction these days. Toby Neugebauer, co-founder of Fermi and the loudest voice in the room, is feeling like his company is facing some serious turbulence and seems determined not to sit idly by as it hits...

Continue Reading

Top 5 Most Recently Viewed Articles

Investing in Dell Technologies: A Remarkable Growth Story

Updated Category News Views 266

Investing in Dell Technologies: A Remarkable Growth Story Dell Technologies (NYSE: DELL) has shown impressive performance over the past five years, significantly surpassing market averages. With an annualized growth rate of 16.74%, investors have reaped substantial rewards from the company’s strong strategy and execution, resulting in an average annual return of 29.36%....

Continue Reading
SoundExchange Highlights 2025's Musical Achievements and Trends

Updated Category News Views 109

Looking Back at 2025: Top Tracks and Emerging Talents As the year comes to a close, SoundExchange has unveiled its annual compilation of the Top Tracks and Breakout Creators for 2025. The selection showcases an exciting array of artists, highlighting the most streamed songs and rapidly rising musicians over the past year, fueled by a remarkable digital music landscape....

Continue Reading
ClimateTech Connect: Pioneering a Green Future in Washington

Updated Category News Views 324

ClimateTech Connect Conference Overview ClimateTech Connect is set to revolutionize the discourse around climate resilience and innovation with its upcoming global conference in Washington, DC. This unique event, scheduled for April 15-16, 2025, is designed to unite thought leaders, innovators, policymakers, and industry experts. The aim is to delve into the fusion of...

Continue Reading
Laminar Pharma Shows Promising Results for LAM561 in Glioblastoma

Updated Category News Views 186

Laminar Pharma's Positive Clinical Trial Results Laminar Pharma has recently disclosed encouraging updates regarding its clinical trial evaluating LAM561, an innovative cancer treatment for newly diagnosed glioblastoma patients. This clinical trial is focused particularly on those with MGMT-methylated tumors, a common prognostic factor in this aggressive form of brain...

Continue Reading
FTC Solar Set to Reveal Q4 and Yearly Financial Results Soon

Updated Category News Views 153

FTC Solar to Report Financial Results FTC Solar, Inc. (Nasdaq: FTCI), renowned as a top-tier provider of solar tracker systems and engineering services, has shared plans to announce its financial outcomes for the fourth quarter and the entire year of 2024. This important announcement will occur prior to market opening on a Monday. Details of the Announcement On the day of...

Continue Reading