vicksburg well, page-45

Pcaruso, I allow for the possibility of any small cap stock I invest in (as opposed to trade in) to fail. They are generally considered high risk for a reason and I treat them that way. I manage that risk by:

1. limiting the size of my investment in them to a level commensurate with their risk profile

2. setting a floor price to exit regardless of my belief in their future

3. exiting before criteria 2 is triggered if I come to believe they will fail before the SP falls to that floor price

Cheers, Sharks.