Motherload, its important to remember that spec stocks have much...

Motherload, its important to remember that spec stocks have much more wild swings than blue chips. For example today with all the uncertainty of the middle east it was a down day. If you look at some blue chips CBA down 1.3%, RIO down 1.2%, BHP up 1.6, WDC down 1.1%. Not too dramatic.

However, PEN by all rights should of finished at 13.5c where it traded for most of the day (one last sale at 14c made that the closing price), but at 13.5c it would of been a 7% loss. SDL, another high cap spec down 4%. So on general economic/world news specs suffer more, the fluctuations greater.

PEN is probably due a correction anyway, but make sure you do your homework so you feel comfortable with larger swings in specs than blue chips. The more you have in specs the greater the risks. In general downturns lots of traders exit specs quickly.

Everyone keeps saying you want to sleep well at night, but then again there is another poster on HC who has a bye line that says something like if you can sleep well at night then you don?t have enough risk!! Personally I don?t have any blue chips, Im addicted to insomnia.