OTC IPOs, Mergers & Other Material Events

[Big Brother]

Yep, there are definitely no guarantees, that's for sure, and it doesn't matter how much DD you do there are always unforeseen issues that no amount of DD can uncover.

That's why I'm trying to get away from spending hundreds of hours DD'ing a single stock, like I did back in the day, it usually just doesn't work. I don't know how many hundreds and hundreds of hours I wasted conducting DD on JAQC/RAFA, KNBA, etc and they were all pretty much busts..... hours of my life I will never get back..lol.

Now I just do some basic DD, without necessarily getting too carried away. It's a hard habit to break, but I'm trying...lol. I use to go in big, conduct a massive amount of DD, and put all my eggs in one basket, it's a strategy that can work... however... I'm finding now going in smaller, into multiple different plays to be working out much better for me.

That scenario you posted, where if you have $5000 to spend, you prefer to buy 10 stocks for $500 vs 2 stocks for $2500 is basically what I'm doing as well. Sure, if one of them runs big, you'll always regret not buying more......but..... if one of those unforeseen things does indeed happen, you have managed risk as well, and it's not a huge loss.