This is an interesting idea, and one that I'm pondering now that I can't DT anymore: doing the research, being ultra patient, finding a cheap stock with some potential, getting in early, and then waiting ... possibly for months/years.
The exact opposite of DTing, what I would call "value" trading.
There are the usual risks ... it may never spike up; there is a cost in having your money tied up for perhaps a long period of time (you would need a large cash stash for this to work if you were a full-time trader); opportunity cost as you watch other runners go by whilst you are holding your yet-to-have-a-run stock.
And when do you give up on it? Or do you become a "true believer" and never sell, but keep holding knowing that one day it will happen (possibly)? What if it has a run one day and you miss it?
I suppose that the investment risk is lower, given that the stock price is low with little to no news. It's not being hyped. Under the radar etc. The business is probably fairly basic, so fewer "moving parts", which probably means that the price will stay low, baselining until the "to-be-hoped-for" spike on news. Any move up will be very nice in percentage terms, perhaps massive as we saw today with RFT.
Interesting stuff. I'm putting together various lists at the moment. One of them is a list of woofers trading at/near $0.001. I might buy a small parcel in one of them, perhaps adding to it over time as funds permit. Less stressful than DTing anyway
All the best for tomorrow.
