An overlooked rule: Wait for the gamblers to have their funMarkets in general sort of always manage to find the nobs breaking point.
After big rallies, some may say bubbles, what is known as "dumb money" is attracted, and you might hear that "oh they don't mean dumb in that sense" if you believe this bs you know you are one of them. Where does this experession come from then? They used the word dumb but without meaning it? "They meant you didn't take the time to think" ye that's right, dumb money didn't take the time to think before buying, or before doing anything, which is also known as "being dumb period".
Serious investors know these creatures, these "emotionals", are morons. They don't want to get all unpopular so they don't just say the truth directly.
The market is not a separate entity, it moves because its participants move it.
Those nobs that get all excited, the gamblers and the breakeven idiots, they prevent the price from going up for 2 reasons:
- Gamblers buy & sell randomly, 1 because they are gamblers, 2 because they are stupid enough to be gamblers therefore are unable to make any correct prediction, if they try they'll be the kind to get excited twice a day and change their mind based on the latest fractal or magical secret indicator they saw (often accompanied by "I am a legend").
- Breakeven idiots love to breakeven. They buy randomly the latest hyped thing, might be a ponzi, might not, they are full random, if they only bought scams there would be some value to them obviously, but nope, full random. They are bad, they look to get rich quick, and hold bags. They hold to zero on the way down, and to nothing at all on the way up. After bagholding they get desperate to breakeven (see the GME clowns that bought at $350 and above), same with dotcoms.
How many idiots were relieved they could finally sell their Amazon shares at $30? Congrats man you got me you get last word well done you were right to hold your bag. You got your $30 a share back. Now Amazon is $3000.
So it's obvious what I'm getting at. Once these clowns get wiped out by a scary red candle after bagholding for years (Bitcoin first half of 2020) there basically is no more resistance, the few bagholders left will breakeven at key levels but it won't stop the uptrend, the majority of the breakeven bagholder herd got ripped to pieces by crocs when they crossed the river.
Nasdaq, Bitcoin, etc. The more gamblers and breakeven bagholders get attracted to something, the more vertically it goes up after they get wiped out.
And until they get wiped out the market never bottoms. They will never win. They are the ultimate illustration of what being BAD at something is.
Fun fact you will always hear from the 1% of this herd that got lucky, the ones with survivor bias "ye sure this river is safe to cross for wildebeests just look at me".
Wildebeests are the dumbest creatures I have ever seen, after weekend "investors" of course. The behavior, not sarcasm I am serious, the behavior is the same.
Do you want to be on the side of wildebeests or the side of crocodiles?
The survivor bias ones celebrate their "gains" showing their extreme ignorance, they act like the herd made money, but data says otherwise.
We used to have robintrack for example, also the UK regulator which banned BTC in the UK but even in Europe because too many people were losing too much money.
We could see visually the data directly. GME, Tesla... (GME from Citadel among others). With Tesla when they buy "the dip" and the price bounces they ALL end up selling on the way up, "breakeven", oh gosh myfxbook is mindblowing for this it's absolutely insane, the 95% on the wrong side of a trend, the average winner size and loser, the awful entries and exits etc.
And while TSLA goes up no retailer buys UNTIL THE TOP, and you know exactly what happens: THIS TIME THEY HOLD. Get rid of winners, hold losers. Brilliant.
They have this ability to buy at the very top, absolute genius. Hear some news then "sidelines" like they aren't late enough, then crack "OK NOW IS THE RIGHT TIME TO BUY"!
The vast majority of crypto bagholders and "dip" buyers that were desperate to catch the bottom ended up missing out. Isn't that amazing?
> Do not trade corrections in general
> When the gambling bagholding herd joins, get ready to exit and then stay away
> Let the gamblers have their fun, and get back into a market after they leave
It has always worked this way and it will keep working this way. Gamblers will ALWAYS lose.
Bottoms will ALWAYS happen once they get wiped out and never before that, no matter how hard they try to "HODL".
If it's not clear enough, if a Tesla or GME or BTC baggy is reading, it's not just about value investors: TREND FOLLOWERS FOLLOW TRENDS. TREND FOLLOWERS CREATE TRENDS. THE PRICEY NO GOY UP IF NO TREND HAPPEN BECAUSE BREAKEVEN TRADERS ARE SELLING. TREND START AFTER BREAKEVENERS AND RANDOM GAMBLERS GET OUT AND SELLING PRESSURE GO GO HOME. THEN PRICE GO GO UP NATURALLY THEN TREND FOLLOWERS FOLLOW TREND AND PRICEY GO GO UP MORE. IF NO TREND THEN TREND FOLLOWERS NO SEE TREND AND NO BUY AND NO PUSH PRICEY UP.
I'll make another idea where I get into this, more clean, and without using the word idiot every sentence :D
Funny how bagholders try so hard to get everyone else to hold when this is precisely what is holding them back, ignorance and stupidity are cruel jokes.
Herd
American millenials being idiots again 😂Extremely bad traders with astonishingly poor intelligence from burgerland fomo'd and dreamt of lambos then decided to baghold once again, and are suing the struggling dying company to maybe get 1 or 2% of their money back (they don't know it yet they dream they can get the full amount back).
Gives us something to laugh about, while the number of USO baggies is slowly going down as USO share price slowly goes up (and they are able to breakeven).
Here is the story of a bagholder that ate extreme losses on Robinhood in his late 20s. Not from the recent Kodak move, have not found the stories yet, but it's always the same anyway. An individual from San Diego, California, which is probably the bastion state of robinhood millenials, I estimate a good 1/3 of users come from there.
www.nytimes.com
"Mr. Dobatse, now 32, said he had been charmed by Robinhood’s one-click trading, easy access to complex investment products, and features like falling confetti and emoji-filled phone notifications that made it feel like a game. After funding his account with $15,000 in credit card advances, he began spending more time on the app.
As he repeatedly lost money, Mr. Dobatse took out two $30,000 home equity loans so he could buy and sell more speculative stocks and options, hoping to pay off his debts. His account value shot above $1 million this year — but almost all of that recently disappeared. This week, his balance was $6,956."
So he gambled and got lucky and made very quick very huge gains and thought he was better than George Soros then lost it all and never had the clarity of mind to get out, and now has an additional 68k in debt. I am sure he believes in socialized losses and is a big Bernie supporter.
In 1 article they quote someone from twitter "So he wanted to "trade to pay off his debts" but then kept trading after earning more than enough to do so and then lost it all. The psychological consequences of realizing you are dumbass should be dire.". Exactly.
Back to Kodak. Karma is beautiful as ignorant californian socialist tech savy 25 year olds bought this stock following the government (the thing they love so much) making a socialist loan to dying kodak (rather than let them die and allocate capital efficiently), and then the government took the loan away as fast as it gave it. 🙂
I wonder how many davey day trader global day traders bought Kodak and held. Did Dave Portnoy? Saw him get excited at Kodak when the price went up but do not know if he bought.
After hundreds of thousands of awful dumb gullible young investors piled into this piece of garbage, the one and only I present Senator Elizabeth Warren, also known as Pocahontas, called for a greater investigation by Congress, because that's so their job. What investigation? Same story as usual.
Why is the government focus all on protecting idiots? Rather than spending time on the strong. That's like a pro investor that would always invest in the weakest worse companies and ignore or even tax the strong ones. What a waste of time and counterproductive thing we have going. At least they get those idiots to vote for them.
Screw the US economy. This sinking ship is going to collapse faster than the Titanic.
I don't think I will ever invest in a US stock.
This never gets old.
My joy is great and my satisfaction is immeasurable.
"Never let them ride yo wave" -Quavo, Portland 2017ok boys
mr. elliot, can i ride ur wave?
shout out to quavo open.spotify.com
dont ever let them ride yo wave
so we got some memes on this chart, shout out to @tonevays, beast TD indicator god tybg
we got no higher high on the 6 7 candle sequence, lets see if we dump past this red 1 otherwise superwave 5 is valid, mmkay?
after that exit all crypto markets, they are about to bogandoff that shit forreal this time
from the ashes , will rise a phoenix backed by Goldman Sachs llollllll plebs
lets get this