There are plenty of small cap and penny stocks that I have passed on over the last few months that have had stock gains of over 100% and I DO NOT think I have missed out on these opportunities.
Why you may ask?
Because many of these securities trade at very LOW levels and are often susceptible to manipulation by pump and dump actors. This is even true now with larger securities that have billion dollar market caps. Whenever you see a chart that goes STRAIGHT UP/DOWN 10, 20, 30% or more, you know that a big fish is entering in or out of a position. What's to stop these players? Not much.
So if this is being done with larger securities, image how much easier it is to do with smaller cap, less liquid companies. Take a guess. CORRECT: Much easier!
Do your research, take a look at the charts, identify large buy ins, sell offs on a companies stock information page. All the information is right there.
I also see this as a big problem with BITCOIN and crypto in general. First off, there are many fewer controls and regulations overseeing crypto. Secondly, how does a currency with 100 billion dollar+++ market cap have price fluctuations straight up and down all the time? Easy...it's called manipulation. Also, crypto markets are eerily illiquid. Price movements have been reduced to zippo for long periods of time then, boom, a big movement up and down. You may be better off taking your chances at the craps tables in Vegas. At least there is continuous action and money changing hands!
Stay liquid and watch sudden large spikes +/- in stock price. Chances are, someone or some super computer is taking advantage of sentiment.
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