$30,000 Millionaire said:
A nominal amount of stock as a lotto for earnings makes sense under the following conditions:
- You believe in the company and would own the stock anyway
- Sentiment is worth fading (AMZN was down 7% today before the report)
- Position size and risk is sufficiently small. In the case of the $50K account it's a 6% position, but the risk really isn't that large. The stock wouldn't go down by 50%, at most it would go down 10%, which is a 0.6% loss. Tolerable IMO
This post can't be starred enough, i keep reading it and going back over that trade. Seems like it was executed flawlessly. Bought a share in the dump into close, sold a couple minutes later for 15% gain. No fear, no fomo. BSG ain't the only surgeon around here.