1/ To those new investors, make sure you understand these micro cap markets. Volume has been pouring out. Profit taking abounds. Market sentiment has changed. Take a moment to study charts from 2017/2018 and look at what is occurring now
2/ 95% of these companies will end up right back where they started. Take an objective look at the company you're so keen on. Back in 2018 everyone had the same narrative too. "This company has the most disruptive tech". "This product is game changing"
3/ unfortunately the reality is that most of this is narrative created by companies with a very vested interest in bringing in new money. It's all about the story. Most of them will fail, but to keep moving they need investor money.
4/ The problem they now face after major moves up, is that when market sentiment changes, people take profit and smart money looks to protect their capital. This puts pressure on the stock. Pair that with cheap paper flooding the market, and it simply cannot be absorbed
5/ When the market changes, you must change with it. Stay nimble, take smaller wins, be humble and not greedy. Most importantly, don't sit on dead money. Don't marry the company and the story. If the trend changes but you love the company, sell and buy it back cheaper
6/ "The Prophet" may have been a self righteous ass, but he did have one solid piece of advice. These stocks are trading vehicles. Treat them accordingly, because odds are you have not, in fact, found the rare unicorn that will buck the trend and rule the world
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