Real-life story of "Fortune Tellers" for newbies (Part 1)
2 nights ago, Bloomberg released a "recycled" news that US govt banned the sale of a stripped down version of AMD's AI GPU to China. Immediately, bears stormed the after-hours trade & AMD went down $7+... Throughout the day yesterday, many "fortune tellers" appeared in moomoo platform predicting an incoming big sell-off. For example, 1 "fortune teller" said he expected AMD price to drop at least 10%. So, I grabbed my popcorn & prepared to sit thru the night to watch how these "fortune tellers" would execute their short trades.
So, trading started at 10.30pm SGT. I confronted another "fortune teller" when he screamed "sell off". He indicated elsewhere AMD would drop to $150. I asked him to show his short position so I could learn how he made his millions shorting. He refused to share. I responded to the other "fortune teller" mentioned earlier that the ban was not new & AMD had responded before that it would not have material effect on revenue. No response.
The night went on & I felt really tired around 2am. By that time, AMD had recovered to -$2 & "fortune tellers" have gone into hiding. Alas, when I woke up this morning, AMD was down by a WHOOPING 23c...
The morale of the story for newbies is that there are many "fortune tellers" on this platform giving dumb price targets & please don't listen to any of them. Also don't bother asking them because based on my observation, they are as accurate as flipping a coin. If they are so good, they would not be "fortune tellers" on this platform. For example, the "fortune teller" that suggested AMD would drop to $150 has been wrong for 4 weeks in-a-row now. Even my dog has a better track record.
Stock price goes up & down. The magnitude can be bigger for some companies (like AMD) than others. However, nobody knows how the market will behave on any given day. The right thing to do is study the company, the management team, the products, the market & how well the team executes. Invest for the longer term (at least 1 year). Day trading for non-professionals is no different from gambling. You may win $1k a night & feel invinsible but over a longer term, you are more likely to lose $. There is no shortcut to making big $ in the stock market. Invest the time to read, read & read. Buy a small position 1st & dollar-cost-average when you gain more knowledge & confidence in the company of interest...
Good luck!!!
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macfan28 : So true on the gambling part.
Anyway, the strong rise in AMD share price is getting a bit annoying. I can’t load up as many shares as I wish for long term.
Master Corgi : So easy to talk big when the stock goes up. When it dropped previously before being saved by NVDA earnings, so quiet no where to be found
Coming from someone with a stock trading badge level 26 says it all..
digimonXOP macfan28: There will be pullbacks for sure. Just take those opportunities to dollar-cost-average.
If one expects AMD's price to go up over a period of time, he/she will also need to be realistic to average up i.e. avg cost basis go higher over time.
digimonXOP Master Corgi: I have never given any price predictions. I always accept price will go up & down. I don't remember I came out to shout when AMD went up $15 & $10 last week. Check my previous comments.
BTW, how did last night's "sell-off" end up, Mr Fortune Teller?
Master Corgi digimonXOP: Anyone can have their price targets and prediction. And it isn’t breaking any rules to post them on the app. But clearly seems to affect you a lot. You are obviously not a day trader and just here to monitor and worry about your long term portfolio go get a life
digimonXOP Master Corgi: I wrote this piece for newbies not to listen to "Fortune Tellers". It is not meant for "fortune tellers". Why did it affect you so much, Mr Fortune Teller?
Master Corgi digimonXOP: Coming from a true AMD fanboy
digimonXOP Master Corgi: Yes, I have been investing in AMD for 10 years now. I have been open about this & mentioned this before. Check my previous comments. Don't know why this affects you...
Master Corgi digimonXOP: Stop painting the rosy picture especially for newbies. Just cause you obviously have a long position in AMD. Not entertaining such post anymore.
digimonXOP Master Corgi: I have mentioned multiple times I have been investing in AMD for 10 years now. Of course I have a long position. Still don't understand why it affects you so much...
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