My first rule of speculation is: only speculate with money that you can afford to lose should you be lucky enough to be in such a fortunate position financially. [ Of course, there are other important considerations, such as reward/risk ratio, stop-loss points etc. etc. all covered in my own report provisionally titled: "The Happy Speculator- How To Have Fun and Make Money While Speculating in Financial Markets".]
Money you cannot afford to lose must be always be kept separately from speculative "play" money, and invested in a neutral, non predictive long term savings plan that gives similar results to the one I personally recommend .
Below is one story about a fund manager investor who made money by shorting the Facebook I.P.O. , plus three related USA Today Facebook I.P.O. stories
I am almost tempted to bet that the fund manager profiled did not confine his speculation to money that his fund could not afford to lose, especially seeing as how he was in fact using other peoples money, which of course, psychologically in the future sets him up to think he really knows what's going on and would be able to repeat his good fortune elsewhere[again probably using money his fund cannot afford to lose] , and his funds clients risk getting "taken to the cleaners" as they say.
As a professional he must have had some sort of risk aversion strategy in place, although there is no telling at this time what it was or just how effective it would have been in real life if the IPO had dramatically increased in value.
Regardless, he got lucky, so for right now he's probably achieved almost god-like status in the eyes of his funds clients. And so it goes :-) Regards, onebornfree.
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