More of a suggestion – a penny dreadful, or two?

Hi Jeff,

Thanks for completing the survey and ideas, its actually one we have thought of in the past, e.g. “trade of the week”. There are a couple of major issues with a penny dreadful, or two, for MM:

1. Liquidity, if our alerts move a stock we can be in breach of ASIC Rules.
2. Plus of course we cannot ignore how often they end up halving in value, or worse
3. The last few years have been tough on the small caps with the local index testing fresh 3-year lows on Thursday.

Speculating in the small stocks has been tough post-COVID in a risk averse market that keeps witnessing bond yields making fresh multi-year highs. A few other things to consider:

• There are plenty of volatile “plays” available on the main board including tech, gold and lithium.
• Shorter term swings can be traded via ETF’s with Bitcoin expected by many to be available in the coming weeks.

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ASX Small Ords Index

LAST UPDATED 26/10/2023 17:53

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ASX Small Ords Index

LAST UPDATED 26/10/2023 17:53