There are many stock trading tips, stock investing advice for prudent trading and not just gambling or speculating. Whether you trade the stock market, the forex market or any other financial market, our stock trading top tip is : do not chase the market.
Stock trading fomo effect
The fomo effect (fear or missing out) when trading stocks, equities amplifies in almost all cases bubbles in financial assets, and prices get disconnected from their fundamentals. Take for example the Tesla stock, today it is up to 942.31+83.91 (+9.78%). The reason is that some analyst hiked its priced target. This is not the best time to trade the Tesla stock as a huge rally has already taken place.It is too risky. If you add the fact that Tesla stock to our financial analysis is way too overvalued, then this game trading stocks like Tesla is just speculation.
Stocks to buy, stocks to sell
There are always opportunities about stocks to buy, stocks to sell. The fomo effect is too dangerous and is a behavioral bias in investing and trading. Apply risk management, fundamental analysis and use technical analysis to buy stocks with good fundamentals which are undervalued, sell overvalued stocks, or do not just get carried away buying stocks because they move up, for no obvious reason, not a catalyst or something related to financial results and performance.
“Virgin Galactic Holdings Inc <SPCE.N> shares surged 24% on Tuesday, extending a rally since early December to over 400% and evoking a warning from an analyst who likes the space tourism company but warns it has become overbought.
When stocks move in such a way, there is momentum, and often it is not news or any fundamentals. We suggest extreme caution to this Virgin Galactic Holdings, Inc. (SPCE) stock rally.
The daily range today for the stock was 28.75 – 38.67 was 28.75 – 38.67, and Virgin Galactic Holdings, Inc. (SPCE) stock made a new 52-week high at 38.67.
Virgin Galactic Frenzy Starting to Look a Little Like Tesla Run
“(Bloomberg) — A seven-day surge in Virgin Galactic Holdings Inc. has lifted the stock four times above its level in December. Gains are snowballing, options traders are piling in, chatrooms are lighting up. It’s all starting to look similar to another space-age growth stock’s recent run.
“Kroger Co.’s stock soared in after-hours trading Friday following the disclosure that famed investor Warren Buffett’s Berkshire Hathaway conglomerate has made a huge investment in the supermarket giant’s stock.
Omaha, Neb.-based conglomerate Berkshire Hathaway bought a new position of 18.9 million shares of Kroger (NYSE: KR) stock during the fourth quarter, according to a Securities and Exchange Commission filing late Friday. It didn’t own Kroger stock before last quarter. That stake was worth $549 million at year-end and represents 2.4% of Kroger’s stock. That makes Berkshire Hathaway (NYSE: BRK-A) the seventh-largest owner of Kroger shares, according to Kroger’s investor relations listing on its website.”