tech/a
No Ordinary Duck
- Joined
- 14 October 2004
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I'm glad you made this comment,Tech/a. The conventional wisdom is always to spread the risk to a very small proportion of available funds. But there are plenty of times when whacking a large amount on something you're pretty sure about will net as much in a short time as many months of stuffing about with small gains on small caps.
Yes I did that with my wife!
After 12 yrs of small trades---
I noticed in your portfolio that you are trading a number of lower priced companies (compared to the big names: BHP, Banks etc). What is your reason for this. Is it based on volatility? Or a mixture of factors.
Would you advocate this approach for a beginner? Or do you think it's safer for me to have a play around with some of the more "popular" companies first while I am learning? Or does it make no difference at all in your opinion?
Yes there is a reason.
Small caps are likely to move 20% in a week or even a day something like BHP wont do that in a month---well rarely.
I chase momentum Ill add it to my portfolio and when it ceases or reverses I'll remove it.
I can also find many many trades---more than I can possibly trade so I can be selective and can be Brutal in portfolio management.
Far better "Bang for Buck"
You really need to be able to read a chart before attempting these.
Cut your teeth on a few while you paper trade---thats what Id be doing paper trading until you can turn a regular profit.