My Thoughts on GameStop, AMC, and Hype
Updated
I wrote this post today to share my thoughts on what I think is a really interesting mental framework to use when thinking about trading or investing. I hope this post helps people make better decisions and I personally have made all of these mistakes. Yes, like many, I have lost on bad trades or investments, too. It's a reality of markets. Okay let's get started:
Did you know there are 3000+ other stocks in the market? That's right... 3000. Add in crypto and that's easily another 1000+ crypto projects. Add in forex and futures and that's easily another 500+ futures and forex trades. The point I am trying to make is, there is opportunity everywhere and never one reason to chase a single asset or feel like you missed out. Take your time. Be patient. Don't chase. Look at the entire market. It's wide open to you. There are trading and investing ideas everywhere. Patience is your best friend.
The next point I want to talk about, and related to what I wrote above is FOMO (Fear of Missing Out). My good friend tells me to embrace JOMO (Joy of Missing Out). The point here is that the market has been open for 100+ years. Crypto is open 24/7! It is not going anywhere. No one is telling you to buy or sell. Each decision is yours to own and only yours. You have to take ownership of your portfolio. There is no manipulation or scam going on other than your decision making in a marketplace that has been open for a long time and one that is now being enhanced by the proliferation of technology.
The same way you research a car or TV, hours of research, reading reviews, studying your budget, is the same way you should approach markets. There is no rush to do anything. You won't "miss the move." As I said, the market has been open 100+ years. JOMO is a great strategy in certain times. It's okay to miss out on a move because it will be open tomorrow, and the next day, and the next. Time is your friend.
I hope this framework is helping and now here's one more piece of advice: an old trader rule says "if a stock makes the news, you're late." What that means is someone who was more prepared, who had built a long-term plan, was involved before the news became a thing. It's important to remember that people do this for a living - studying companies, writing about them, reading about them, and building a position over time before the news cycle begins. You need to know this to think about who you are going up against when buying into news or hype. Otherwise you will chase news headlines and continue to be "late." Now of course, some people do chase headlines for a living, buying on big news announcements, but just remember that someone out there was there long before it happened. The awareness of this will really change your perspective on markets.
I hope this post helps and I wrote it because, like I said in the intro, this has all happened to me. I try to think about the markets with this framework in mind. The recent mania in AMC and GME and others has me thinking about all of this and I wanted to share it with you all.
Thanks for reading!
Did you know there are 3000+ other stocks in the market? That's right... 3000. Add in crypto and that's easily another 1000+ crypto projects. Add in forex and futures and that's easily another 500+ futures and forex trades. The point I am trying to make is, there is opportunity everywhere and never one reason to chase a single asset or feel like you missed out. Take your time. Be patient. Don't chase. Look at the entire market. It's wide open to you. There are trading and investing ideas everywhere. Patience is your best friend.
The next point I want to talk about, and related to what I wrote above is FOMO (Fear of Missing Out). My good friend tells me to embrace JOMO (Joy of Missing Out). The point here is that the market has been open for 100+ years. Crypto is open 24/7! It is not going anywhere. No one is telling you to buy or sell. Each decision is yours to own and only yours. You have to take ownership of your portfolio. There is no manipulation or scam going on other than your decision making in a marketplace that has been open for a long time and one that is now being enhanced by the proliferation of technology.
The same way you research a car or TV, hours of research, reading reviews, studying your budget, is the same way you should approach markets. There is no rush to do anything. You won't "miss the move." As I said, the market has been open 100+ years. JOMO is a great strategy in certain times. It's okay to miss out on a move because it will be open tomorrow, and the next day, and the next. Time is your friend.
I hope this framework is helping and now here's one more piece of advice: an old trader rule says "if a stock makes the news, you're late." What that means is someone who was more prepared, who had built a long-term plan, was involved before the news became a thing. It's important to remember that people do this for a living - studying companies, writing about them, reading about them, and building a position over time before the news cycle begins. You need to know this to think about who you are going up against when buying into news or hype. Otherwise you will chase news headlines and continue to be "late." Now of course, some people do chase headlines for a living, buying on big news announcements, but just remember that someone out there was there long before it happened. The awareness of this will really change your perspective on markets.
I hope this post helps and I wrote it because, like I said in the intro, this has all happened to me. I try to think about the markets with this framework in mind. The recent mania in AMC and GME and others has me thinking about all of this and I wanted to share it with you all.
Thanks for reading!
Note
I am not bearing bearish or bullish with this post. Just sharing some helpful tips for the everyday investor or trader.
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