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Stock DueD

02/23/2021 12:54

$Bionano Genomics What to do at times likes this? We all come from different backgrounds, have different trading strategies and trading experience levels.

Those of you that are brand-new (or fairly new) to trading, those who have been trading for only a few weeks or months, have seen just the "bull" face of the market. It is a lot easier to trade & make profits in a bull market when you know, overall, most stocks are going up. It gets a little trickier when market in general is in a down-trend, and requires a different strategy.

Your strategy will depend on:

1- Your level of experience
2- Your account size
3- Your liquidity levels

If you are a seasoned trader, you already know to expect market corrections, can tell the signs of an upcoming sell-off, and prepare yourself by locking in profits, moving more towards a cash position. This allows you to exploit the weakness in the market by buying cheap and riding the wave on the way up.

If you have a smaller account, especially under 25K with limited day trades, you need to learn from what is going on in the market now, and what you did wrong (or could do better).

Let's be honest with each other: Unless us retail investors move into a stock altogether (i.e. GME phenomenon), what we do with our limited number of shares as individuals will have no impact on any stock's price. However, what we do today will have a huge impact on what our portfolio looks like tomorrow.

In the stock market, you are your only friend, but you also are your worst enemy. Ask yourself a few questions (and be honest with yourself) to see where you stand overall as a trader / investor:

1- Do you always find yourself saying " FML, i always buy too high" or "as soon as i buy a stock, it goes down"? If so, you are a gambler, not a trader. You are trying to make money off of stocks that have already made their run, and you don't have a strategy. Once in a while, you will buy a stock that is already up 100%, and the run will continue, you will make money...However, that is a rarity, an exception...Most of the time, you will lose money doing so, and find yourself wondering why every stock you buy goes down in price.

2- Do you know anything about the company at which you are throwing your money? If not, you are a gambler, not a trader / investor. You don't have to trade every day nor do you have to trade every stock that is running. Think about it: It is your hard-earned money you are risking here, why would you not take a few minutes to read about / research the company you put money in?

3- Do you have a strategy? You absolutely have to always trade with a plan, and stick with it. If you are in the green zone, do you have a target price to take some profits? or do you just assume your stock will keep going up forever? When do you cut your losses and move on to your next move?

4- Do you rely on Webull community or complete strangers for stock advice? If you are able to trade, that means:
a- You can read
b- You have access to the internet

Those are the two things to start doing a little due diligence...Even if you have no idea how to do Due Diligence, the internet offers a ton of resources to start learning. Just google a company you are planning to invest in (short or long term)...Read about what they do, how long they have been around...visit their website, look at their management, previous share offerings / earnings / partnerships & contracts etc. (if applicable). Use the internet to access previously published articles about that company, which, some of those articles will contain very useful information. Don't use internet just to buy stocks randomly - use it to educate yourself. Learning is like breathing - you have keep learning until you no longer breathe.

5- Do you always have all of your money in stocks? That is a big mistake you should avoid at all times. You never know when an overall macro event takes the entire market down, and if you are not liquid enough, if you never have a certain % of your total account value in cash, you will miss out on opportunities that present themselves.

6- Do you feel good about the stocks in your portfolio? If you do, any correction / sell-off in the market will have little to no impact on you emotionally. Stock markets can be emotional roller-coaster rides. Afterall, it is great to watch your money grow, and hurts to see your money lose value. If you are stocks like $SENSEONICS $STAR PEAK ENERGY $American Rsrcs that have a solid technology and sooner or later, will be trading at much higher prices than your entry point, then you are set. Your confidence level determines the future of your portfolio. You learn not to worry much when prices go down, because you know you are holding good stocks & they will bounce back up higher. If you trade cryptocurrency or crypto-stocks such as $Canaan Inc. $Marathon Digital Holdings Inc $Riot Blockchain $CleanSpark , then a massive sell off like this doesn't scare you, because you know where bitcoin is going, sooner or later. If you are in clean energy / alternative fuel / rare earth elements or EV-related stocks such as $Clean Enrgy Fuel $Plug Power $GEVO $FCEL $NIO, then you know where those stocks are going in the upcoming weeks/months. If you understand the macro level sentiment...if you believe that EV is the future, clean energy is the future, and we are in desparate need of rare earth elements so we don't have to depend on other countries...then regardless of the day-to-day action in the market, you know you are holding winner stocks in the long haul, and have no reason to panic-sell.

Keep your head up, guys. Be resilient, don't cave in to fear or pay attention to the bears / shorts that flood the community with doomsday posts. Hold on to your shares (if you are selling, then who is buying and why? right?), be patient, and stop staring at your screen all day :)

good luck!
Disclaimer: The comments, opinions and analysis expressed herein are for informational and educational purposes only and shoulk not be considered as individual investment advice or recommendations. Webull is not responsible or liable in any way for comments posted by pur users.

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All Comments(45)

Yra***com02/25/2021 06:45
Thank you πŸ™ I am extremely impatient and always jump the boat before time and them regret it. I am going to follow every advise you gave us and start practicing patience. The lesson I learn the most From your post is LiquidIty. I rush and invest everything and when the dips come I missed due to liquidity.

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Jimmy02/25/2021 00:01
Thanks for the download! I have made many mistakes, but rarely the same one. "Intelligence is learning from your mistakes, wisdom is learning from other's." I'm probably going to need to read this from time to time as a reminder lol.

Stock DueD02/25/2021 00:03

very well said re: intelligence vs wisdom πŸ‘

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780****02702/24/2021 22:56
Your words are full of wisdom for those who understand. Have been in many of the situations you've described in my short trading stint. I've made mistakes including getting carried away into the GME (FOMO) fiasco, luckily only invested a tiny amount but have learnt from it and will keep reminding myself to never make that kind of investment decision again.
I've started doing more research into the companies, earnings, sec filings, management team, market potential, etc. Learning more each day.

Thank you for your advice!

Stock DueD02/24/2021 23:41

you are most welcome πŸ€œπŸ€›

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rdb***com02/23/2021 22:04
I'm new and learning. I emailed this to myself. Gonna read it every Monday morning. Thanks!

Stock DueD02/23/2021 22:20

😊 πŸ€œπŸ€›

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Sk8***com02/23/2021 20:36
Just starting out and not knowing where to go first other than just a general β€œdiverse portfolio” i have to say, I needed to read this...i was planning on putting together a list this weekend and making my first purchases in a few dozen slices but i think i will carefully research all my choices further, consider their markets futures and reevaLuate before hitting that order button...thank you so much for the wise advice.

Stock DueD02/23/2021 21:51

thanks a bunch,my friend, and appreciate your response. As i said earlier, we all have a lot to learn from each other as long as we share good info with each other instead of "to the moon" posts followed by πŸš€'s 😁

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ct1***com02/23/2021 20:35
Great advice for this Newbie!! Thank you very much!!

Stock DueD02/23/2021 21:49

You are most welcomeπŸ‘Œ

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BamaKat8002/23/2021 20:33
Thank you for posting this. My only complaint is that you didn't post it sooner lol.. I started buying stocks last year. I learned several lesson the hard and expensive way, like DO NOT PANIC SELL just because the stocks goes down some, do your own homework, and don't chase after a stocking that's running.
You post got me to thinking πŸ€”... I really haven't thought about what my goal is for this stock.. I'm in at 2.64 1032 shares and asking myself if I'm about to learn another hard lesson for not selling when it hit $15.

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Eagerbeavers02/23/2021 20:08
I have to work on #3 πŸ˜‚

Stock DueD02/23/2021 21:53

hahaha i sometimes find myself failing at number 5 🀣🀣🀣

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S.Crawford201202/23/2021 19:58
well said πŸ‘. keep up the good work. πŸ‘I am sure your post is a great help to many on here.

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864****75202/23/2021 19:49
I needed to hear that, thank you!

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Dj Raha02/23/2021 19:45
Thank you for the wisdom

Stock DueD02/23/2021 21:52

you are welcome. Good luck brotherπŸ‘πŸ»

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RiveraHH151802/23/2021 19:33
Thank you for this, I pulled all my money out of a stock that i bought after the news for fomo and took a pretty big loss and put it back into a company i truly believe in

Stock DueD02/23/2021 19:49

gotta stay positive and learn from our mistakes along the way. Sounds like you did the right thing there bud, thumbs up πŸ‘πŸ»

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Pen***com02/23/2021 19:31
thanks for that. good advice to live by.

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You.Enjoy.MyStocks02/23/2021 19:12
Well done, well written. What a guy you are. Best positive post ever on WB Thank you

Stock DueD02/23/2021 19:20

😊😊😊 thank you kindly πŸ™

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Jes***com02/23/2021 19:09
Team work makes the dream woek. Thank you for sharing !!

Stock DueD02/23/2021 19:11

you are most welcome bud πŸ‘πŸ»

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