I WILL ANSWER THIS ONE QUESTION - He, he, he, he.... But first - are you the neighbor dwn the street with the pom pom's on the back of the rifing lawn mower ? (tease)
SS - QUESTION: Wango I have a logic question for you. You have to choose between two investments, and for some reason you are not able to buy both in this scenario. The first company is a startup with massive potential for growth but is in a very risky sector. ( Sounds like Stockhouses write of of pyd - in the beginning ? lol )
Management is strong and they have a good business model. They are just getting started and therefore undervalued but also volatile. With this particular stock, you have a 50 percent chance of doubling your money every three months. ( well, again - sounds like pyd - but given the chronic slam posts timed perfectly - around news - and the g/d 10-1 roll - i now know what it feels like getting f'd over - and wish the company to pick up the slack and advertise - to get fresh investors in - and at leastt tell new investors - how much revenues are being earned... ? Doesn't seem fair - the company got what they wanted through shares - then rolled - and now im thinking country club and well - this stock lacks advertising and new investor interest - and to compare against other listed companies - pyd has com a long way - and given the few share out and the assets owned - im thinking this srtock could be valued far higher if others knew abut it - to think other stcks have far less value - and trade higher - pre roll stats - and pyd has how much compared to others ? So, if they advertise - then more investor interest is funneled in - after all - the value in this penny market is with in the control of the investor - under over valued... advertsing would at least prove whether it is or not based on investor interest. )
However, you also have a 25 percent chance of losing half your money every 6 months....
The Second company is one of the biggest in its sector and has just as strong of management. Having such a huge Market cap, there is much lower chance of large gains but also less volatile. With this company you have a 50 percent chance of earning 2 percent every month, and you have a 50 percent chance of losing 2 percent every 6 months. Which investment do you choose? And far more importantly, why do you make this decision? Don't ignore it. Now is your chance to show off your deductive skills.
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SS - NOW TO ANSWER YOU - Given what i have learned - stuck in two stocks over the last year...So wanting to try other stocks - that are moving that are gaining - and companies whose stock is not hoarded by one or two players - I would opt for the 2% every month - 2% compounded - grows incredfibly over time... And, with a less volotile stock - it spares a trader all the bullsh-it and strsss - and worrying the stock or investment will tank - via- vying against basdhers... or company failure.. .lol Have i learned yes... Chatting for a year - learning how to value a stock - learning the markets - drooling over other stocks - sitting on the sidelines and seeing and watching other stocks i have picked - and seeing if i made the right choice and saying.. wow - i picked a good one- did my DD - and wow - i really did pick a good one out f so many.... And, as well pointing out the bad ones and still keeping tabs on those to see how bad - and kind predicting where the company went wrong - in addition - reading other traders posts- and not being able to get out of a stock - forced me to sit tight and wait - and while waiting - learning and more learning and more learning...
I will say tihs SS... i will not deny your ethics of - not being greedy.... I do get what your saying - but investing in a stock and cashing out with 10 -15% gain - is all good - But i think if you were in my shoes you then know - - i never got that chance with the two stocks im in that are down - yes.... from the get go - each went down and never went back up - so - it was never a case of being greedy - it was f'd from the get go - and stuck - and couldnt afford to average down at the time - so - no - not greedy.... Just bad timing - i thought the stock would go up on good news... who doesnt think that way - right?
- BACK TO YOUR QUESTION - What investemnt would i choose - if but only one option ?
My answer to your question... Safety always... at least i try to - time when to get in - but its not always about getting in before news - seems my stock went the other way - and onewent the other way on multiple good news ! grrrrr - so not typical - like other stocks that go up on good news -
2% x 12 months = 24% annum
And when compounded even more...
if every 6 months a potential loss could incur of 2% =
20% over all potential gain per annum. Hope i answered correctly - hey... i'm not afraid of saying i'm still learning - i have fun posting - and i guess - all i can do is hope that sme day my stocks go up - there are so many variables when it cmes to trading stocks- its not always about the metircs - its about the traders that can make the metrics happen or not happen - i try to focus on the trades going through - theres where the answers are found -
theres a trader matrix fight with in a market matrix fight - happening - that goes unsung - wish i knew this far sooner - grrr ! Cheers !