GOOD MORNING EVERYONE!!!!!
I hope you're all as excited for this upcoming week as myself! I once again am going to be going on 24 hours no sleep as of 3 pm today.(took a nap monies all tied up anyways in consolidating stock(previous fomo buys with minimal profit realized already btw, lol)
Anyways the stock on everyone's mind this weekend. NERV. Yes, it is going to RIP. This comes with risks as well as two things I learned while studying the history of volatile stocks.
First the risks. We just witnessed one of the biggest selloffs in market history, if not the biggest. I could not find evidence to stand behind that claim. However, in said selloff there is 0 way it falls to 1.88 without all or close to all inside investor shares being sold off as well. What does this mean?
It could mean 1 or 2 of 2 things.
1, these tests failed completely and utterly with 0 effect. The 2nd article we saw about the 40 week trial is fluff for us traders. Other things in the pipeline are underwhelming.company needs to find a new support ASAP..
2, and this is the for sure one, the inside investors have to have a TON of leverage on stock price to be able to control the simple moving average in a way that doesn't hyperinflation. Judging by the price action ah I'm leaning towards 1 being a non factor.
This leads me to what I've learned about these kind of stocks and trading in general as I begin my journey. BOLLINGER BANDS HELP! Lol, sorta kidding. These are simple fundamentals for some of you, if so, enjoy your day :) Everyone else new like me listen up!!!
The FED and FOMO buying have pumped tons of money into these companies we put on watch as they come out of their slump. These companies know this and have their best people working on fixing the charts annnnd....
SECURING PROFITS!!! These guys are making money all day and darken trading pennies ah to secure some revenue for their companies. Make sure to set realistic stops to prevent foreseeable negative price action. If you are leaving your workstation for any amount of time or taking your eyes off of a stock a all, set up your profit take and stop losses!!! Secondly and what I think to be more important...
I know we're all looking at these set ups and salivating but I've seen a lot of "all in" posts. While this could be huge if it pays off, you have no diversity, and elevated risk to your investment. There are plenty of well paying setups playing into the coming months. Don't risk more than 10% of your portfolio on a trade WITH a stop loss of -1% if things start going sideways..
Ok that's all I got. Time for bed. Have great weekend everyone!!!!