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arnold

02/01/08 11:36 AM

#56565 RE: hdhick #56559

hdhick, Let me explain it a little better. If you buy a stock for $.06, you know exactly what your risk is. You are guaranteed that you can not lose more than .06/share. It is similar to buying a put or call option, your risk is limited to the cost of the option. If you buy a stock for $50.00/share, you do not generally think it is going to go to zero but you have no guarantee that you will not lose $5, $10 or $15 dollars a share. That was my rationale for saying I could not lose more than .06 per share. I did not say I could not lose it all, just that my risk was limited to $.06/share and I was willing to take that small risk.

arnold