Quote:
Originally Posted by John7777
It'll probably work great until it doesn't. Seriously. Being overweight in a risky stock just because you "think" it is a good investment is a recipe for losing a lot of money fast. One time I had way too much money in a risky biotech stock that had a drug that I thought was a slam dunk for FDA approval. I was wrong and one morning the stock opened down over 50%.
Anyway, if you like to gamble, fine. Las Vegas might be more fun, though.
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The casino analogy isn't too far off. I played blackjack in Vegas for over a year and came out ahead a little bit. In blackjack you bet big when the odds are in your favor. How do you know when it's time to bet big -- by counting cards (back in the days). It's kind of the same thing with stocks. You guess by observing things like price, trend, and volume.
I actually like the stock casino way more than the Vegas casino. While the Vegas casino is no fool, there are plenty of fools in the stock casino for me to make money from.
While the stock casino and the Vegas casino are different, the survival rules are the same: protect your capital at all time; admitting you are wrong and walk away; it's not the thinking or doing that makes you money; etc.
You need to have plan. And the pillars of any trading plan are risk management and money management. No doubt the game is tough. It's not the right vehicle for everyone. It's certainly not right for the copy/paste novices.
By the way, I don't invest. I trade or, more specifically, I speculate. What else to call it when you buy something for a dollar and hope to sell for more in the future.
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