how to handle a monster

  1. 8,744 Posts.
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    OK......seems lots pf people don't know how to handle this high-risk/high-reward stock.Many seemed to have lost big time in the past with poor money management and risk management skills.

    So here's a plan.I will assume you have $100,000 dollars to invest.If you have more or less,you just need to divide or multiply the sums for yourself.

    Now!......from my total of $100k I am prepared to risk a loss of 2%($2000)on URA...kind of yuk,but ain't gonna kill me.Ok,so looking at the chart I figure .01c is the worst it could drop to.It has good support at .016c but worst has been around .012c........so I allowed .010c.You with me!

    Ok,so at yesterdays closing price of .024c,to lose my $2000 at .01c Iwould need to buy approx 140,000 shares.

    140000times .024=$3360 worth of shares.

    So if they drop to .01c my 140000 shares are now worth $1400.A loss of $1960.As I said yuk,but it ain't gonna kill me.($3360-$1400=$1960)Of course I am going to have my stop loss set higher than the point .01c,but that's another story.

    OK now for the good news.Assume this stock takes off.What I will then do is PYRAMID in to the rising share price.As this stock is capable of going to $1.10c as it did in '07,I certainly would not want to miss out.So pyramiding my cash in as the share price rises is my best and safest bet with this stock.

    Just a theory that may help but DYOR on the 2% Rule and ignore what many posters say.Just because someone puts a squillion dollars into this stock,doesn't mean you a should........after all,they may have 10 squillion in commercial real estate,in which case they can afford to take a big gamble with this stock....you can't.....THATS WHY YOU NEED TO DO WHATS RIGHT FOR YOU.



 
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