Retail investors with less experience may be struggling to adjust because they’re familiar with the prominent technology companies. However the market often passes through multiyear cycles. Understanding changes in investor sentiment can help traders avoid areas of weakness and focus on new opportunities.
This practice can help manage volatility because not all stocks move the same way when the broader market swings. It also prevents a big drop in a single security from inflicting major damage on an account. And perhaps most important, diversification can reduce the kind of bad emotional reactions that happen when accounts swing in value.
All else being equal, a trader with poor stock selection and sound risk management will outperform and survive longer than the trader with great stock selection and poor risk management.
The video-game retailer entered the session with a year-to-date gain of over 1,600 percent, propelled by a short squeeze of epic proportions. Seconds after 10 a.m. ET, it reached a high of $483. GME then reversed and plunged 77 percent to $112.25 by 11:25 a.m. before bouncing.
Netflix and Intel reported strong results this week as earnings season marches toward the major tech stocks.
2020 was one of the most dramatic years in the history of investing as the coronavirus pandemic accelerated key trends in the stock market. 2020’s… Read More »Tesla Led the S&P 500 in One of the Most Dramatic Years in the History of the Stock Market
An upgrade by Goldman Sachs was the latest catalyst for the stock, already up 609 percent this year. Analyst Mark Delaney based his call on macro and micro factors.
This post will help traders keep up with shifts in sentiment. It will describe some basic techniques for discovering new areas of leadership at almost any time. These can also help you avoid falling into value traps, or being late to stocks that are losing buyers.