Even though it is possible for price to go beyond the 3rd STD, It usually doesn't remain there for long before it has to cycle back to test lower levels. However, hype stocks can lead people to keep buying in fear of missing out. We all know that is a rookie mistake. That's why, even though NVIDIA is an awesome company, I would instead prefer to buy at a discount.
No one knows what price will do tomorrow. But it's best to have the odds on our side. And when a situation seems risky, even though it's promising, it's usually the best just to step back. Even if you have to let go a great opportunity where price rises, you will still be better off. Because a strategy consisting of chasing the trend will inevitably end poorly. The correct approach is trying to find opportunities where the price isn't too hot, and you believe in the future of the company.
One must look for ways to determine if a new trend is forming. Not trying to catch the current one. If the price is already in a clear trend, it's best not to jump in right away, but look for a cool off before taking a position. Also, when considering individual stock's it's important to study the related indices as they will give more context to where the stock is in contrast to its pears with similar situations.
By looking at the
ES1!
and
ES1!
It's noticeable that these indices are also overheating. Just to be clear, I don't believe we are at the peak yet, but we will soon be there. Just be patient, don't tell price what to do, let it hit you about its next move and prepare for all scenarios.
No one knows what price will do tomorrow. But it's best to have the odds on our side. And when a situation seems risky, even though it's promising, it's usually the best just to step back. Even if you have to let go a great opportunity where price rises, you will still be better off. Because a strategy consisting of chasing the trend will inevitably end poorly. The correct approach is trying to find opportunities where the price isn't too hot, and you believe in the future of the company.
One must look for ways to determine if a new trend is forming. Not trying to catch the current one. If the price is already in a clear trend, it's best not to jump in right away, but look for a cool off before taking a position. Also, when considering individual stock's it's important to study the related indices as they will give more context to where the stock is in contrast to its pears with similar situations.
By looking at the
ES1!
and
ES1!
It's noticeable that these indices are also overheating. Just to be clear, I don't believe we are at the peak yet, but we will soon be there. Just be patient, don't tell price what to do, let it hit you about its next move and prepare for all scenarios.