“Truth be told, if you keep buying high and selling low, you should stay out of the stock market, because you’re losing money. Your primary goal as an investor should be not to lose money.” – Carl Richards
The market right now is filled with greedy newbies who are pumping stocks that are bankrupt and other stocks that make absolutely no money. A lot of Speculation right now. I still believe that the market is a false bull and that the fed pumping the market. I think this is going to turn out bad. My account is currently at all-time highs and even higher then it was PRE-COVID.
If you buy stocks when investors are most worried, during situations when shareholders are dumping stock primarily because they are driven by fear—you can position yourself uniquely to pick up those same shares for a substantially undervalued price.
Greed is typically created by shares which have been increasing in price. And the stocks you purchased after investors dumped them during a moment of panic will (almost) inevitably attract the hungry eyes of investors who are watching them rebound back to ideal prices, and possibly even beyond. Many growth stocks face greed and get pumped by people who have FOMO.
When others are selling stocks that is when I am looking to buy, oversold stocks give a great opportunity to go long on a company. Right now, there is a lot of newbie investors looking to dive right into the market, this is going to backfire and wall street is gonna wipe their profits before they know it. My strategy right now is to just wait for the market to fall before I buy back in again, for now, I have enough in the market and a ton of cash sitting in my account that I’m waiting to dump in for the PERFECT opportunity. Right now I have plenty of people asking me what stocks to buy this is a perfect example of buffets quote “be fearful when others are greedy and be greedy when others are fearful” Right now I am fearful and am ready for the next big drop 🙂