Quote:
Originally Posted by Sieg
Now I feel much better about the spare change order at $2.19 for 1K............   |
Well... this thread is all "theory" and ways to think about the market/investing. It's not the absolute "do this and don't do that" kind of thread...
And for people that want to play in the market I say go for it. I've done this for years so I understand it completely. I don't think there is a right way or a wrong way (well - yeah there is a wrong way) to try to make some money and each person has to find out what that is - what their risk tolerance is etc.
Along those lines -- my buddy wanted to get into the market - and we discussed all the things that we've discussed here.... and he can "take risk" no problem - so he says. The very first stock he buys is a splitter. LuLuLemon (LULU)... buys at $120 - and it splits 2:1 - and he's certain it's going to the moon from there... but instead it starts dropping... and it drops to $45 or so... and he's like a cat on speed over it. When it finally gets back to about 52 or 3 he sells it all...
The take away from that is he has now recognized something in himself that will stick with him -- his appetite for risk really wasn't what he thought it was.. so this was a cheap lesson for him. It will make him a better investor.