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Hello Crazy Gang,
Let's return to the grand old subject of penny shares. They are, after all, one of the most dramatic ways of making a killing in the great game.
The drawback is, of course, that they are riskier than the giants. Though after Northern Rock (NRK) and British Energy (BGY), you might almost think of them in a kindlier light.
I've already said (quite a lot) that penny shares are exciting because of the arithmentic. For example, you can only lose 100% of your stake - but the profits are limitless. A thousand per cent can gain is possible. And sometimes the rewards are even more.
But let's look at specifics a bit. How many penny share companies do you need? The more the better is the obvious answer. But that's no good if your funds are limited. (If they're too limited, by the way, you shouldn't be doing shares at all).
Anyroad up, I think you need at least 10 different companies, for a measure of safety. Typically, ten of my cheapo shares would perform like this over 6 months, say. Three would fall, two would stay still and three will do quite nicely. One will double in value and another will rise by 300%.
This is an unreliable example. This does not happen to ten of my penny shares every time, or in fact, most of the time. It just seems to strike a similar pattern. And I'm talking, of course, about relatively stable periods on the Stock Exchange.
I would be grateful to know how your average ten penny shares might pan out over the years. You'll probably prove that my example is up the creek, but we all have different views in Crazyland. don't we? Rocking on!
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