Are you a speculator?
If not, you should be…
A lot of successful investors keep a portion of their
portfolios for speculating in the stock market. I like to refer
to it as "fun money". The percentage generally ranges from
1-5% of an investor's portfolio. This is the portion of a
portfolio that you'd use to bet on stocks that usually have more
potential than actual substance; typically this means betting on
or stocks trading on the OTC market or pink sheets.
In most cases, that's a futile endeavor…until now.
You're not going to read about speculating from
, Martin Zweig or Benjamin Graham. However, that does not
mean that investing in a speculative manner shouldn't be part of
your portfolio and shouldn't be taken just as seriously as your
overall investment philosophy.
In fact, a sound philosophy should be developed for the "fun
money" portion as well.
The goal, just as with the larger portion of your portfolio,
should be to minimize risk. Just because you are speculating with
this small part of your portfolio doesn't mean you want to lose
the money any more than you normally would with a more
There are many ways to speculate in the stock market. As an
strategist I like to use options as my vehicle for speculating.
In general, however, most investors tend to think of speculating
as focusing on stocks at the low range of the micro-cap world, or
penny stocks - companies usually trading for a market cap less
than $100 million. Although these stocks should be analyzed
just like other stocks in your portfolio there are several
particular areas you really need to review with a fine-toothed
comb…because there is a lot of complete garbage out there.
We've all heard about the pump and dump schemes that dominate
the micro-cap space. But there are legitimate opportunities that
can truly enhance the overall returns of your portfolio.
And that's why I want to introduce you to our service,
The 100% Letter
. Our esteemed and highly successful analyst Tyler Laundon has
been giving away speculative picks with great success to his
readers for years. Tyler has been so successful with mirco-cap
stocks that our founder and Chief Investment Strategist Ian Wyatt
has decided to allow him to focus all his energy on the micro-cap
sector. Why spend an exorbitant amount of time sifting through
the universe of 10,000+ micro-cap stocks when Tyler can bring you
potential returns of 100%, 200% even 500%?
In most cases, investors should avoid speculating.
Typically, the neophyte investor gets carried away and is
unable to keep the speculative portion of the portfolio below
1-5% and sell when the speculative portion rises well above this
point (assuming you adopt the 1-5% strategy). Investors
often ride a speculative investment up only to ride it back down
again. Again, this is why having Tyler on your side is such
an enormous asset. He will give you signals when to buy and sell
with each and every investment recommendation.
There is often more discipline involved in speculation than
there is with regular investing. Many investors have enough
trouble maintaining discipline with their regular strategies.
So, this is only for the bold, disciplined, and cautious
It almost sounds like a paradox, being disciplined to be
speculative, but it's impossible to be successful at speculation
without discipline. Otherwise, your "fun money" will be
"dumb money," which defeats the whole purpose of allocating a
portion of your portfolio to speculation in the first place.
You might as well just cash out 1-5% of your portfolio a
year and burn the money if you aren't going to follow a
But one thing is certain: Tyler WILL help you to stay
If you would like to learn more about Tyler's successful
investment philosophy you will not want to miss his upcoming
teleconference. On February 20 at 2 p.m. ET, Tyler and fellow
editor Chris Preston will present "
100% Returns: A Strategy for Consistent