Speculative Stock Portfolio | Aussie Stock Forums


I buy a few speculative stocks every now and then with money I can afford to lose, so smallest parcels of around $500 each per stock. ‘…with money I can afford to lose’ is very misleading as it sound like I have excess that I don’t know what to do with ! Quite the opposite is true, I am an average Aussie battler and the money I put into these stocks is any free cash that I have after priorities are taken care of. Priorities are having sufficient funds for: mortgage, utility bills, car expenses, entire amount for monthly credit card balance (not the minimum repayment!), and living expenses (food/clothes etc). Once the basic priorities are taken care of, I have a few thousand in a cash account for emergencies or for a holiday. Then I have money put into longer term stocks with some funds usually kept for new stock positions with a longer term horizon. With any remaining cash, I will buy speculative stocks mentioned in this thread. These include mining hopefuls, new technology startups and turnaround stories of companies trying to recover from near collapse. I have not been including these in my “Medium/Longer Term Stock Portfolio” as these tiny speculative stocks have wild swings such as 50% up or down days and once in a while one of these can go into administration and I will lose the entire stake in that stock, that’s a 100% loss on that investment. So I didn’t want that level of volatility in a longer term portfolio, hence the birth of this new thread “Speculative Stock Portfolio”.

Although it’s not common, I have had a few of them that went into bankruptcy either due to poor decision making (such as paying a huge amount for almost a worthless asset), racking up massive debts or running out of money and not being able to raise more capital. In these instances I have lost the amount put into that stock, usually around $500.

Two full paragraphs about Risks buying speculative stocks and depressive text about losing the entire investment in a stock. Usually speculative stock threads start with the biggest hype and excitement with predictions of the next tiny-cap stock that’s shooting to the stars from what I’ve seen in forums. But with decade long experience and having survived through the GFC, I want to be realistic with the risk I’m taking with each speculative purchase.

So why put any money into these penny stocks anyway? Well, given the risk I’m taking, the story has to be big with each pick with potential to return multiple times the initial stake.

So the first stock for this portfolio is a new technology stock involved in using technology to cleanup environmental problems. These problems include air pollution, mining and chemical issues. Company is “Clean TeQ Holdings Limited (CLQ)” bought on 7th of July for 70.5c, a quantity of 750 shares.



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