💪📈🏃♀️🏃♂️Only Chase Hot Stocks That Are Solid Investments😉
@Tiger_comments asked if our preference is to chase hot trends 📈🏃♀️🏃♂️ or to stick to our principles & make solid investments💪 so let’s take a look at the advantages & examples of each investment strategy.
📈🏃♀️🏃♂️ Chase Hot Trends :
👍 May be able to make Quick & Big💵💵💵 if we have strong technical analysis knowledge, able to time the market accurately, & are disciplined to take profits & cut loss
Examples: Investing/Trading based on:
⭐️ Current market hypes e.g. AI🤖 stocks because of ChatGPT hype
⭐️ Current market sentiment & news e.g. gold because of a possible recession
⭐️ IPOs/Meme Stocks
💪 Stick To Principles & Make Solid Investments:
👍 More likely to preserve capital & grow profits gradually for beginning investors who have limited investing knowledge.
Examples: Investing in-
⭐️ Index-Based ETFs using the Dollar-Cost-Averaging strategy/🐯 Auto-Invest
⭐️ Blue chip stocks for dividends
⭐️ Undervalued quality companies with a healthy balance sheet, growth potential, & popularity with investors
As we can see from the above, both strategies can be profitable & it just depends on our investing knowledge, skills, & risk tolerance😉 The danger of chasing hot trends📈🏃♀️🏃♂️ is that we might get burned & make significant losses🔥🔥🔥 while investing in solid investments after detailed research tend to help us preserve our capital better❣️
As for me, I like to 💪📈🏃♀️🏃♂️Only Chase Hot Stocks That Are Solid Investments😉 I find that this method helps me the most in preserving capital while allowing me to make good profits. For example, in the automotive industry, $Ford(F)$ would be a solid investment whereas $Tesla Motors(TSLA)$ Bearish would be more of chasing a hot trend (although die-hard fans of TSLA wouldn’t agree with me😅) Let’s compare their stock charts for the last 1 year & analyse together🕵🏻♀️🕵🏻♂️:
As you can see from the above charts, F has way lesser volatility than TSLA & we could have easily bought F below $12 & sold it whenever it reached $14 for a small & steady profit😉 However, if we had bought TSLA at $250 & didn’t sell it at $280, we would have made a significant paper loss when it dropped close to $100. Of course, if we bought TSLA near $100, then we could sell it now for a 👍 profit as well. The issue with TSLA is that Musk is too unpredictable, causing the stock to be very volatile making entry & exit points difficult unless we have the necessary technical analysis knowledge & are disciplined to take profits & cut loss😉
$XPeng Inc.(XPEV)$
Which strategy has been more effective for you & why🐯🐯🐯❓Share your experience in the comments section below❣️
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As usual-🤔💭 Consider POV & Actions of Investors + 👩🏻💻👨🏻💻 Research + 🗑FOMO & Greed = Investing Wisely 🤓🤗 + Accumulating Wealth 💵💰
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It’s ok to chase the hot stocks but we may stay on the top.
TSLA will rise again soon. let’s see.
Blue chips all the way
Why the current price of F is so low?
Interesting read
Great ariticle, would you like to share it?