TRAPPED ON TOPS

2023년 3월 17일

This chart is giving a perfect example of how Retail participants always stucked on the Tops because they buy in FOMO (fear of missing out) or some one always behind there to make a setup for them for this buying instead of this they should thought about the fair valuations and some more key ratios which can help out for getting good valuations while on the contrary smart money or visionary investors they studied before entering in stock because they always believe that they are going to buy a Business and valuations not only a stock in the mean time we saw that breakout traders come and do trades but actually they are very disciplined and always follow a good risk management concept with strict stop losses but ultimately these traders are working for Big investors indirectly for creating more FOMO by price spikes and retail get trapped because that thing he saw yesterday for example at 100 not it is trading at price of 120 with the gains of 20% and this move make them think to get some awesome returns overnight and got stucked, whereas from here big investors will start selling (distributions) because the value become high and they got some other good value options too because apart of investing they never stops studies.


💡Conclusion-: Always do your complete study on any of company in which you are going to invest for right valuations and always keep tracking the news and promoter holdings and star investors holdings always keep in mind Study more than trade or investing with proper decided risk management.


💡I am not saying that even after doing this we will not get trapped but at least we will not get trapped on exactly high values.


𝐑𝐞𝐠𝐚𝐫𝐝𝐬-: 𝐀𝐦𝐢𝐭 𝐑𝐚𝐣𝐚𝐧