mumbley1 (< 20)

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November 18, 2011 – Comments (1) | RELATED TICKERS: KOG , SVU , NM

Yep, I'm punching up stocks under $10 in hope of making enough money to buy stocks over $10. My system, since I don't know how to read financial reports, is to run the stocks Motley's seems to favor through NASDAQ's guru system and then, using my monkey boy intuition, buy stocks.

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#1) On November 18, 2011 at 1:46 PM, TSIF (99.95) wrote:

There are multiple ways to slice the variety of ways to play the market. The market doesn't play fair no matter how you slice it. A monkey with a dartboard will have it's share of success, even if it's a coincidence.

That said, I hope you aren't focusing on sub $10 equities because you think they are "cheaper" than a $15, $20, $25 etc equity.

The bottom line is that a 10% gain or loss on your investment is exactly the same no matter what your starting price of the equity.

While there may be more excitement in holding 100 shares of a $10 equity for a $1,000 investment than 10 shares of a $100 stock, the results are exactly the same. Try the math! ;)

If the $100 stock makes more sense to you from a valuation standpoint than the $10 equity, don't force the shoe to fit something it doesn't!

Good luck Rookie! It's a volitile market. It requires some luck, some timing, and learning some metrics. Based on the three stocks in your ticker list on your blog, it looks like you should do much better than the Monkey in the long run!

TSIF

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