Perpetual Lottery Tickets Drawer

Are you going to adjust your returns for risk? Penny stocks are generally high beta, so if the S&P is up then you would expect a portfolio of penny stocks to be up more in % terms. But in the next bear market you will most likely lose a lot more in % terms than the indices.
 
Quote from Cutten:

Are you going to adjust your returns for risk? Penny stocks are generally high beta, so if the S&P is up then you would expect a portfolio of penny stocks to be up more in % terms. But in the next bear market you will most likely lose a lot more in % terms than the indices.
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We'll see.
 
i must have missed this in your thread. If it only costs you one dollar each side and your profit is taking that cost into consideration, then it looks like you havve a winning strategy that may bite you in the ass in the future! haha With penny stocks, you never really know what's going to happen. suppose half of the stocks you are in went bankrupt on a partiuclar day? THis is quite possible! Good luck and I hope you have continued success. It would be nice if rather than just saying N=20, you could list the 20 stocks you bought or sold.

So where do you pay only $1 per side for penny stocks? where do you trade? Also, how many shares of each stock do you buy?
Is what you do called basket trading?

Basket trading would be treating a group of stocks as one, clicking one button to trade the whole basket as an instrument.

This is not the case here......the logic here, is buying a low price and diversifing to where if one stock goes BK it can be absorbed in P. Prices going down from less than one dollar will not effect P much if there are enough picks.

Half of the portfolio going bk in one day.....? wow I do not believe this...is it really possible? That would be a lot of companies all at once indicating a major economic catastrophe....which would effect other markets that we are comparing this model to.

Michael B.
 
Nice comparison....

I would by a 1-lot lottery ticket for $100.00 and put it in the drawer....why not?.....just keep adding and they never expire and one day the P may show double....I like it.....then we sell all and start over. (hope we get good fills on the basket-sell)

Michael B.
 
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