Quote (Crunkt @ Jun 3 2021 12:05pm)
Isnt it funny when Family members tell you they used to do it and lost all their money then proceed to spout out all the 'rules' to follow as if trying to teach me..
Its like bro you lost all your money so essentially I should do the opposite of what you say and Ill make money
this year has heavily favored high-risk speculative investments, which goes against all reasoning and historical success. the way markets operate is dynamic, the rules and behaviors change. for example, there is unquestionably a high level of AI involvement in Wall Street today. also "meme" stocks have defied all logic because of the power of persuasion via social media platforms.
there are 3 ways for any asset to be analyzed. speculative price movement pretty much just gauges how much buzz there is about something. dogecoin is entirely speculative as it has 0 fundamentals or technical benefit, as an example. GameStop, AMC, and Blackberry stocks also fall under this category that they rely almost entirely on heavy trading volume generated by social media influence.
technical analysis of an asset, particularly those that have a long history with repeated trends, is by far the safest method in investing. anyone who studied the Bitcoin charts, for example, knew that buying the dips was proven to be successful many times over.
the last main method is to closely examine the firm’s reports which are filed with the Securities and Exchange Commission. These reports may include the 10-K and 10-Q, as well as sell-side analysts’ reports on the company.
lately the sell-side analysis of a given company is now heavily dependent on hedge funds and their interest level regarding shorting volume. essentially what happens, particularly in low volume trading, is hedge funds are able to ping-pong shares back and forth to walk the price down. they make money by shorting the asset, pummeling it into oblivion to leech the value off of retail investors, on the way down. then the make money by taking their foot off the gas at the bottom and riding the shares they collected at a discount upwards.