Seanergy Maritime Holdings Corp. (SHIP)

[Dan Money]

Some people do not believe in diversifying.Some talk about they would wait 9 months to a year for the perfect trade where they only in 1 stock or 0.Plus I heard one guy who said he did this put a massive percent of his whole bankroll into it every single time.

The problem with that is any disaster would be so much worse if you got 40% of more of all your stock money in just one trade/stock.I think it is bad bankroll management no matter how favored you are unless your account is so low/small it does not matter.

He said he was so profitable and was almost never wrong he did not care but to me it is unnecessary to risk that much on any one trade/stock.


Some that do diversify say they would limit all their investments to a small number of 4 or less at a time but I do not really agree with that either.

I do not fault anyone who cant find any trade/stock they like for not making a move but that tells me they either do not know what they are doing or they way too cautious.


Let us say that a trader will not invest in a stock or trade unless they believe there is a 90% chance they will make money.

It is cool if there is any trader that is seriously that accurate but even that can cost that trader a lot of money.


I can invest around the same amount of money in 10 different OTC stocks as an example and strongly feel there is a 70% chance I will make money on each of them with a 30% chance I will lose everything.

Even if it was 60% profitable to 40% losers "at best" it would still be really good.

The reason why these work for me is because even if just 4 of them are profitable they will pay for all 6 losers.I will still be profitable overall.Even if only 3 were profitable I could still take only a slight profit or loss overall.Plus that is like a worse case scenario.

The traders that have to be accurate 90% of the time they would not even look at trades like that and they probably do not look at OTC at all.