Hey mate, that's a terrific strategy, especially for any...

Hey mate, that's a terrific strategy, especially for any investors out there who cannot properly manage risk.

CNJ is a penny dreadful that has made me plenty of coin so far in my trades and might (more likely than not) yet still.

In my experience, without taking isolated trades as an example, but averaged across multiple stocks over many years I have made massively more coin on 'penny dreadfuls' than I could have made on fundamentally low risk companies.

Since capitalism began time has proven that the biggest profits have come from taking risk.

I don't trade or invest to simply make a profit, I trade or invest to make the biggest profit I can- which means taking risk- often (but not always) on 'penny dreadfuls' - and I properly manage that risk.

If someone cannot properly manage risk, then I recommend absolutely they follow your strategy PigsMightFly. I am not sure how big their profits will be but at least they can boast that they never lose money.

I do admit I follow price action a lot more closely to fundamentals and therefore we are probably inherently different animals but that doesn't make one view more right than the other- even if we are looking at the same company.

Every time someone sells a parcel of shares there is a buyer. Both think they are astute and correct in their trade. Some might think only one can be correct. I disagree. I reckon that it depends on your risk profile, how much profit you are looking to make and over what time frame. The seller might have filled their objective of a short term profit on a spike in SP action while the buyer might be looking for a longer term trade with a particular profit down the track. Both can be correct in the assessment of the trade.

The quicker people realise this the less angst there will be in these forums.

Cheers