It's true that a swing-for-the-fences approach is a very risky way to
invest. When you find such golden opportunities, you should always make
a modest investment. Any stocks with potentially robust upside usually
often possess a lot of downside risk as well.
Yet there are ways to mitigate risk when pursuing stocks with high
upside. If they already sport low valuations, or if they have very
strong balance sheets, they likely have limited downside. In effect,
such stocks already reflect ample negative sentiment, and with a few
helpful catalysts, can quickly move back into favor. (more)
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