Sunday, November 28, 2021

Trading stock and crypto nowadays

Trading has been democratized! Anyone can do it but not everyone is gonna end up on the winning side. 

Most new traders are automatically attracted to penny stocks, companies whose shares are priced really low. There's a reason for that, they suck.

Then you have the runs we have seen for the the past couple of years, fueled by influencers, reddit and even Elon Musk.

Making money here has been a form of art and alchemy. Now, everyone with a phone or a computer can try their luck.

Some are gonna make it, some will lose everything.

The truth of the matter is, even experienced traders lose money but if you don't know what you're doing, you're just gambling.

There are million of websites, YouTube channels and people on Twitter who claim to know it all. 

Now it is even harder to predict outcomes because the art of reading charts and patterns has been replaced by fear of missing out and troves of redditors flocking to particular companies. 

The fact is, as usual, if you're late to the party, you'll lose.

Crypto is even worse since is not regulated in any shape or form. It is easier to manipulate. Even more by playing mind games with the inexperienced new traders.

Their game is simple. Shorting the coin so the price goes down. People sell out of panic and then buying again with huge profits. The price goes up again, people flock out of fomo and repeat.

From here, you can make your own conclusions and plan your best strategy.

Not financial advise.