Jazz, you like living life on the edge! Serendipidity is always...

Jazz, you like living life on the edge!

Serendipidity is always present, so it is good insurance to set yourself strict limits for the maximum $$ you want to invest in spec stocks. This is not as much fun, but less risky.

If you want to get more sophisticated, you can have categories: low risk, medium risk, high risk and speculative, and set limits for each category. This way you can suffer a loss, but still be able to re-think your values, and start again in your next great spec pick.

The driver is not what you want to gain, but how much you are prepared to lose without the pain being too much.