Recently I did something unusual for me - I put $10k ( only 2% of my total investments) into a speculative stock, based on some specialized knowledge I have about its product. (NOT insider knowledge, just a field I know something about). I didn’t invest more than I could afford to lose, and so far, it has almost doubled in price in a short time. Since I never really do this though, I’ll admit I didn’t have a firm end in mind. My general plan is to sell half to recoup my original investment, and let the remaining $10k ride unless I see a reason to lose confidence in their product. If it’s successful, that remaining $10k might increase up to ten fold; if it fails, I could lose all $10k but would be no worse off than when I started because I’ve recouped the original investment and didn’t tie it up for very long (about 4-6 weeks).
Does this seem like a reasonable way to think about it? I knew it was a risky investment when I made it, and am willing to cut my potential long term gains in half in exchange for recovering my initial investment. Give me your viewpoints .