Hi all, I have been on and off with the market for years. Making some here losing some there. On the whole probably still down about 20k or so. Always discouraged from a string of losses and exited the markets to do boring things like pay debt etc. Well,this time I have no funds to trade a proper account with. Just about R4000-00 which I thought I could take a trip to the South Coast with... BUT I HAVE A PLAN. Over the last 6 months or so I have been dabbling with poker and have become somewhat competent (If I can keep my emotions in check)...I am gonna use the R4000-00 to play poker with and aim to build up about R10,000-00. From this point I will invest monthly profits into PENNY SHARES. The plan is to generate about R4000 a month from the R10k bankroll and build a PENNY SHARE portfolio that will one day allow me to retire and travel the world. What do you think of this plan? I will give weekly updates until I a) bust out b) succeed c) get a new plan.
i guess thats in some way vaguely similair to venture capitalits approach to things. For every 10, 9 will bust out and 1 will succeed so incredibly it more than makes up for the losses of the other 9. When it comes to poker though, you better be not only good, but lucky! I personally think your plan is nuts and has a double-gamble element to it - and will probably fail pretty hard. But Im keen to see how you do!
Beautiful - will not invest in your plan myself, but looking forward to the progres updates - how about informing us a few hours before your big game for moral support and probably a bit of verbal abuse...
Well - for what it's worth - I've been doing this with profits from my trading portfolio for the last 2 years. The assumption being that such profits are somehow less valuable and this will offset the risk in the penny stocks (and illiquid value stocks) themselves. So far ... wait for it ... drum roll... its been a waste of time. I would have done far better if I had stuck with my quality positions. I know that one is looking at the longer-term returns here; but at this rate I will become disenchanted and throw in the towel before I get "there." The spread is quite extensive - some 20 stocks drawn from most sectors. Positions range from R80k to quite substantial exposures. I hope that I can one day report that I have unearthed the next Capitec.
why stop at 10K, it you can make R10K from 4K. Seems you are better at poker than trading, if you keep that up you will be an overnight millionare, intsead of waiting months for shares to move up/down...you could also simulate dividends, go one night a week and play for a few K, and improve by time and half.
Well making it to 10k will be tough. Might take a long time as I am only going in with 5% per game. I buy into a game where my 5% (R200) can get me a 50% stack (so not that short stacked John). So I am playing the R2/R4 tables currently (on-line). Lost the game last night so puts me on R3800-00. So 5% now is R190 which will allow me to buy into the R1/R2 (R100) and 50c/R1 (R90) games simultaneously. Kinda like a trade using 5% of capital and a stop loss. In my mind its the same...manage capital, put in stop loss and hopefully you have an edge (skill). I will post updates every Friday. I am no expert, just playing casually for 6 months, but what I see is that going beyond the R5/R10 tables (which I will only play with a R10k account) there is way too much varience. It will then get hard on the nerves to try to generate monthly income from these high stakes games for a risk averse player... and the drawdowns could be huge with a losing streak.
I think Jonno is not so dumb as everyone is making him out to be, I wish him luck and that he has some fun in the process...but I doubt he will achieve his goal, otherwise everyone would be doing it from home and not working for a boss.