Agreed, but my initial comment was that you need a lot of shares to really make an impact on your financial situation. Having 100 Capitec shares even if they do grow in value by 10 bucks, won't help much. Having 10000 will rock the boat.
Werner, by your own comment, you have answered the question that this topic is all about. As an experienced investor/trader you do not buy high risk shares. If that is the case then we are all buying high risk shares for the adrenilin rush and not for the capital gain. Kwagga, therE you have your answer. WE ARE ALL A LOT OF ADRENALIN JUNKIES!!
You looking at the change in the ZAR amount, to get a R10 change on something like Capitec is a few hundred times easier (if at all possible) than to get that on a 1c penny share. I think you should rather work in %, this is relative to the shareprice and much easier to compare companies than the actualy ZAR amount.
I think anyone buying shares becomes addicted - i certainly am - the more they move, the happier we get, but when it really comes to building wealth smaller gains more consistently is better, this is normally achieved by the more established companies. As discussed above, one must have a portfolio with a decent strategy that balances based on your risk profile and you can have a portion of all types of shares in your portfolio and be very successful - all depends on the person!
Don't confuse risk and size. Some years ago, ABSA nearly went bust and required a lifeboat from the SARB while Nedbank also had a close shave. And then, there's Enron in the States...it is all about your margin of safety - price calibrated against the measures Werner mentions above once you have sufficiently interrogated the business case. Overpaying for AGL at the top of the market 2 years ago (+50000cps) would also have lost you a packet of money. Smaller caps (not pennystocks!)undoubtedly carry more risk, hence the need for diversification, but also grow much quicker...some of them go on to become 10-baggers. So, we do buy them for capital gain and their time will come again, maybe soon?
Ooh boy, another one of these debates again. guys, do you know how many viable investment strategies are out there? This debate could go on ad-nausium. Buying losers is called contrarian investing, and the strategy is similar to venture capital financing. You have to spread your risk wide to ensure you can capture sufficient probability of hitting the 10-bagger. I doubt that most of us have that type of capital in our personal capacity. Maybe we can get more selective, (something that I sometimes try to do) but I have to confess that this is not really worked well for me overall. I still use my SAMROC success in the past as a motivator for embarking on this, and I am seeing those profits getting chewed up. My biggest gains have been in the last 2 years with value stocks, but then again, how often in life are you going to get that kind of a buying opportunity?