4 ms·
hmm. 0.10x50x$23 = $115 Given those probabilities it seem like a good investment. Or for the less risky version, dollar cost averaging. You use something like
by chegra 16y ago
hmm. 0.10x50x$23 = $115
Given those probabilities it seem like a good investment.
Or for the less risky version, dollar cost averaging.
You use something like share builder:
Every month invest $100.
1month - $100 price of stock 25.0 Stock own:- 4
2month - $200 price of stock 20.0 Stock own:- 9
3month - $300 price of stock 20.0 Stock own:- 14
4month - $400 price of stock 10.0 Stock own:- 24
5month - $500 price of stock 10.0 Stock own:- 34
6month - $600 price of stock 5.0 Stock own:- 54
7month - $700 price of stock 5.0 stock own:- 74
8month - $800 price of stock 5.0 stock own:- 94
9month - $900 price of stock 10.0 stock own:- 104
10month -$1000 price of stock 20.0 stock own:- 109
Overall value of stock own is 109*20 = 2180.
Profit:= $2180-$1000 = $1180
This is an exaggerated example and I only have knowledge of dollar cost average in theory, so anybody have real world experience, jump into the conversation.
http://en.wikipedia.org/wiki/Dollar_cost_averaging http://en.wikipedia.org/wiki/Dollar_cost_averaging
- mcknz 16y agoDollar cost averaging to zero is still zero. Best to stay away from hot IPO stocks until they have a history of earnings.
- chegra 16y agohmm...Risk a $1000 that can degrade to $0 or go to $50,000. The bottom is capped at $0, you cant do no worst, limited downside and unlimited upside. I think it's worth some disposable income.
- jmm 16y agoUm... that's true of buying any stock, right? So I'm not sure the logic allows you to make any kind of comparative decision.
- deleted 16y ago[deleted]
- zackattack 16y agoNot quite. Most stocks don't have 50x potential. (I'm not saying that Tesla does.)