There is one person in particular I want to share trading ideas with, and several with whom I'd like to ... friends. But Blogger is a public medium, so I need to write to some extent about theory.
Large investors can make lots of money, fast, in slow moving big company stocks. And they can't buy enough small stocks to even partly utilize their funds. For the large investor, big stocks are the way to go. But small investors can't make money, not in any timely fashion, in big stocks. Big stocks are too slow moving. It's actually an impossibility for the small investor to make money with any speed in big stocks. But small investors can make meaningful investments in small stocks, and small stocks move fast ... when you get it right.
Small stocks are the right place for small investors. This is the exact opposite of what almost anyone will tell you. According to the theory, small stocks are risky, and it's too easy for the small investor to loose money, or even loose everything.
Manage your small investments intelligently and you can make good money. The evidence that that is true is compelling. But what is intelligent management. Here's a formula: look for investments that are likely to double, and then double again, in short order. Choose one and put in a small amount of money. If you have, oh, a thousand dollars saved, put $100 into one of these stocks. Even though it's just a hundred dollars, if the bet pans out, you will win in a satisfying way.
If you don't look for stocks that are likely to double and double again, you won't make money with small investments ... not for a long time, because what you're left with is the "long term" plan. The long term isn't completely without merit, but it's strictly long term. Why limit yourself to that?
Of course, this says nothing about how to pick stocks. That takes explaining. I need to post more examples.
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