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| Topic | Stock Topic 21 |
| red sox 777 02/11/21 4:17:09 PM #316: | Yeah, basically what you want to protect yourself against is dumping 100k into Luckin Coffee before the fraud announcement, or Enron, or BP the day before the Gulf of Mexico spill, or something like that. 99% of the time, nothing like that will happen but if you are moving huge amounts of money sequentially into stocks, eventually you'll hit a company like that that gaps down 80%+ and wipes out all previous gains. It's playing roulette (supposing they gave you fair odds) by covering every number except 0. Almost all the time, you win a little bit. But eventually 0 hits and you lose a lot. I really hope this doesn't happen to you. And the way to make sure it doesn't, is to never invest more than half your portfolio in any one thing. It doesn't matter how short a period of time you hold it, the risk of a fraud/bankruptcy/disaster announcement is always there. --- September 1, 2003; November 4, 2007; September 2, 2013 Congratulations to DP Oblivion in the Guru Contest! ... Copied to Clipboard! |
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