Lol, Verucal Salt generation, pretty accurate to be fair. I prefer this Verucal Salt .
Nothing inherently wrong with the penny stocks of course. I started off trading blue chips and large caps as someone sensibly told me tha it's a lot safer to learn the ropes (and I in try to tell everyone that too, not sure if anyone has listened to me though haha), then got lured into the pennies with the promises of larger returns. Someone asked the other day what would you change in your trading if you could go back and start over again knowing what you know now. Looking back... I wish I had made more losing trades early on as daft as that sounds. Most of my early trades went well, aside from one decent hit it was smooth sailing, it definitely made me over-confident to begin with. This is so easy I thought, at this rate I can retire in 6 months. Made me ill-equipped when trades starting turning against me more often, wish I'd learned how to deal with that earlier when I was using much small position sizes. Fact is looking back now I can see in those early trades I was mostly just lucky.
Eventually, I figured pennies weren't really suited to me or how I trade. Well not since early 2018 at least, I don't think the spec end has properly recovered since then (nor have my accounts since peaking around then lol). I'll still trade them if I think it's smart, but I don't watch all the pumps and dumps like I used to. Intraday price fluctuations on things like mid-caps I feel is a more controllabe risk factor, rather than trying to guess whether some company is putting out a misleading announcement to pump the SP for a capital raise, or some trade group got set and is ramping the stock to sell into.
Agree when things go it bad doesn't matter what it's market cap is, nothing is truly safe when it really hits the fan. The GFC was actually what made me sit up and take notice of the financial markets, I truly had not paid much attention before then aside from what most people know about them (which is f-all), I really felt a need to understand what was going on.
I won't lie, there is a lot that keeps me worried on the geopolitical front and economic front, starting to feel like a real-life frog in the pot test as to how long before we all realise we are being boiled here and jump out. It's just one crisis after another and the most surprising parts for me have been how well the markets have continued to take it all. There are a lot of alarmist publications out there calling the next GFC every other day, but I do think there are still legitimate reasons to be concerned if things turn sour. You only need to look at the rise of negative-yielding bonds to know people are wary. NZ may already be in a recession for example (we don't know yet for sure because our data reporting is absolute shite, we might know for sure 2 years after the fact if that says something about how ill-equipped we are over here). There's an article I read recently that said many countries are actually in a worse position to deal with a GFC type scenario than they were back in 2007/8 (I think Aus was better positioned off according to them, and NZ was actually worse (yay...)). I'll post it when find that article again, I have no doubt NZ would not cope nearly as well if it were to occur right now. But hopefully not something we have to experience again just yet.
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Made me ill-equipped when trades starting turning against me more often, wish I'd learned how to deal with that earlier when I was using much small position sizes. Fact is looking back now I can see in those early trades I was mostly just lucky.
