coconut merchant, page-4

Thanks for your comments 7thwave, we have 2 coconut merchants.

Well M12 and 7W, what I have struggled with is capital allocation levels wrt speculative stocks. For example, with blue chips that I trade, (primarily BHP, ZFX and PDN) making a decision based on my charts and fundamental sentiments, I look at the volume bid and offered and buy a volume that will get me out fairly quickly if I get it wrong. Also, I generally only buy if the sell depth is fairly weak near the last price. But with speccys, the buy depth can disappear in an instant. Hence, the question is how do you decide how deep to go in with speccys, obviously with more risk than blue chips, but not so much exposure that you can't get out if you decide that your favourite speccy at the time was a bad decision. For example, M12, did you have any trouble reducing your exposure substantially recently?

Thanks for any comments, gotta go do the BBQ duties now, back in a while.