Key insights
- The post outlines a high-risk, high-reward trading strategy focused on identifying and investing in highly volatile stocks at the lower end of their historical price ranges. The goal is to capitalize on potential exponential gains over a 5-10 year period. While potentially profitable, this strategy carries significant risk due to the inherent unpredictability of volatile stocks and the potential for permanent capital loss.
I'm looking to create a list of highly volatile stocks, or stocks that have massive swings in price over the long term. My ultimate goal is to put a small part of my portfolio into these stocks when they are at the lower end of their historical range (5-8 years) and patiently wait for them to hopefully skyrocket again. Then sell and repeat when they inevitably crumble again. My main theory is that I risk minimal money for potentially exponential gains in a 5-10 year time period. I will sell half the shares if it doubles and the remaining shares are basically playing with house money. When I sell the remaining shares will just depend on the situation. Below are a few examples but I'm looking for more.
PLUG: 5 year range is about $1-$40. My cost basis is about $2.
HIMS: 2 year range is roughly $14-$60. I have bought and sold this a few times over the past 3 years. I sold half during a recent spike. My current shares were purchased at about $16.
NVAX: I don't currently own this, but have in the past. This had a crazy spike during Covid, went above $200, but has traded below $5 in the last couple of years.
Any suggestions for my list or strategy? It doesn't matter to me right now what the current prospects are or if it is at a high or low. I just want to create a watchlist for these types of stocks and look for opportunities in the future.