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I have been getting a lot of "should I buy this stock? I hear it's a good stock because X, Y, Z" lately. My answer has always been pretty much NO. When reviewing their monthly chart, I always see a 20-30% run up from these "picks". People need to fight FOMO and really need to grow a pair dip buying. Never once did someone mentioned a pick where the stock price has been going down, or flatlined in the near term.
So PSA, stop chasing gains. Seriously...this is why you lose money. You don't understand why a stock has gone up, all you understand is what if the stock goes up higher without you. This is how you buy high, and when you know nothing about the company or it's valuation as it drops, you fear you were lied to so you sell.
Try this instead.
Pick a growth company with low market cap that is flat line/going down the last few months. Study this company and the reasons why it's a "dead" stock. Once you have done enough research and you still want to put your money into this stock, then it means you have conviction. This is how you buy at the bottom which leads to making some real money.
So PSA, stop chasing gains. Seriously...this is why you lose money. You don't understand why a stock has gone up, all you understand is what if the stock goes up higher without you. This is how you buy high, and when you know nothing about the company or it's valuation as it drops, you fear you were lied to so you sell.
Try this instead.
Pick a growth company with low market cap that is flat line/going down the last few months. Study this company and the reasons why it's a "dead" stock. Once you have done enough research and you still want to put your money into this stock, then it means you have conviction. This is how you buy at the bottom which leads to making some real money.
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