RE: next arb15 May 2021 00:35
@xviolet
Yes, some people do a lot of research and luckily, we have quite a few on here who are willing to share their research and guide others (like me) on this. I have also read what I can and watched the recent presentations.
However, what I would say is that investing in AIM companies is inherently more risky than main market companies due to the legal requirements. Therefore, anyone investing in AIM needs to understand that as a starting position. Next, investing in startup companies (be that exploration, medical, tech, etc.) should also be viewed as high-risk/high-reward.
Some may choose to get in early, ride the initial wave and then sell/de-risk before the ‘evidence’ os success/failure becomes clear. Others will choose to take a longer term view and help to ride the next google, Tesla, etc. and make gains of many multiple of their initial investment.
Nothing is wrong if you’re making money.
If the high-risk is not for someone, then they should try to pick stocks which satisfy their own risk comfort level. Again, on this we are all different. I am less risk adverse than a lot of my friends, but I will only invest in AIM what I can afford to lose (that doesn’t mean to say it won’t hurt if it goes wrong). It’s a calculated risk/reward. A higher percentage of my investments (SIPP/ISA/GIA) will be in ‘safer’ companies - but even then, pick the wrong ones there and you can lose a lot of value.
As for £10k, again, the ‘amount’ is relative. If someone’s savings are £10k, it’s 100%. If someone’s savings are £1m it’s 1%.