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Microcap & Penny Stocks : 10-Bagger MINIMUM Rise from July 1, 2005 until December 31,

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To: tsigprofit who wrote (603)10/14/2005 5:37:23 PM
From: seen-the-light   of 1694
 
Good posts....both tsigprofit and Texbanker. Both of you are correct in what you are saying, IMO. I think investing really all comes down to what one is prepared to lose, in relation to the potential profit one stands to gain. It's simply risk vs. reward.

Like Texbanker, the ONLY time I have ever made a fairly decent gain on my investment was when I risked quite a bit to get it. While diversification is fine for preserving what you have, it's typically not going to be a way of amassing great wealth. The only way to do that is to put up a large amount of cash...typically in either one stock or one sector, because in all probability, you're not going to hit on all your investments when you diversify (i.e., no more than 10% in any one stock). Even one stock going down significantly in your portfolio will wreak havoc with your overall return.

But I agree, one should not risk ANYTHING they cannot afford to lose. If I lost everything in my investments, it wouldn't have a significant effect on my current or future way of life.

Numerous wealthy people subscribe to the "betting it all" approach for wealth building. However, it's not for everyone. Sometimes it doesn't turn out, sometimes it does. And when it does, it can be very, very good. If it doesn't turn out as planned, well.....that's where it goes back to not investing anything you can't afford to lose. If you lose it, you lose it.....and move on. If it DOES turn out as planned....you retire early and have a grand life the rest of your life.
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