Once again, I am buying at a high price, in fact it was never this high before.
Many people I talk to will not take this trade, and that may be one of the reasons why this trade may work in my favour. The 'smart' money knows that in order to have bigger gains, few people should partake of it so that their own share is bigger. Meanwhile, they shore up support for the stock and it goes up. And when the stock is resting, it allows themselves and other savvy traders to come in (accumulation) before it goes up again. Most of the other market participants do not come in and so the stock is relatively stable compared to penny stocks that seem to attract the highest volume of the retail crowd.
Of course it is not foolproof. The stock market is one of the 'places' that espouses the most uncertainty around. Hence it is important to risk small. I have mentioned many times before, and I will again: the key to sustainable success in the markets is to risk small.
No comments:
Post a Comment