Originally Posted by netsfan549
I can afford to lose 500 dollars..
then puchase it. let it sit there. if you follow it, you can sell it when you think its matured. and if you don't, you can always just set what's the profit you want.
with the first strategy, you can at least not risk 500 dollars, which means you are then essentially purchasing the stock price at 21 dollars with less shares. so you can sell when it's at 250, and look at it as you've lost everything.
with the second strategy, your profit may never fully mature, or you never know when it does. so set a whats the price you'd sell as well, just so you can be sure that your asset is liquidated. and you don't really just LOSE 500 dollars. like an emergency fund.