This is why I prefer trading cryptos. Look what just happened to one of the stocks I own! No warning. No chance to get out before the disaster because stock markets don't trade 24/7 like crypto markets do. They close at one price. Then the company announces a surprise fall in profits, and when the market reopens, it's down almost 30%.
At least when BTC falls 30%, it doesn't fall in an instant! I am always able to sell my cryptos in the early stages of a price crash and get out with most of my profits intact. As you can see, I can't always do the same with stocks.
I got out of Bitcoin and other cryptos as the bubble was popping in late 2017 and early 2018. I kept my profits. Meanwhile, old-school finance people have the cheek to complain that crypto is too risky and volatile! SMH.
Comentário
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....but on the other hand, I love it when this happens to one of my stocks, as it did today.
@Bremily01, Yes, I prefer it to the previous one I mentioned. ;-)
MCassICT
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I prefer stocks but I do agree with your point. This is one of the reasons I trade both. I will never understand why stocks don't trade 24 hrs. With the technological advances we have had there is no good reason not to open it up. Either that or get rid of extended hours all together.
GlenGoodman
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@Bremily01, the truth is I'm a terrible hypocrite, because until today I've been moaning about how cryptos trade 24 hours. This makes it harder to time market entries (because sometimes I have to sleep!), so I place stop buy orders instead, which to my mind is not ideal. I quite enjoy the finality of a market that closes at nights and weekends, so I can completely relax.....I had forgotten that sometimes it does what it did to me today. :(
MCassICT
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@GlenGoodman, I understand. Personally, I think to stop buy orders are the way to go. I have used them exclusively for the last 6 months regardless of what I'm trading. I've found it helps me be much more strategic and much less emotional.
GlenGoodman
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@Bremily01, Yes, stop buy orders are an excellent way to keep some emotional distance from the market. My distaste for them is due to my emotional need for maximum control over my trading. For the same reason, I am still a discretionary trader, instead of wholly systematic. No doubt by indulging these urges of mine, I have cost myself considerable hypothetical profit over the years and wasted a lot of unnecessary time at my screen. I hope to wean myself off these bad habits eventually.
k2sygvz4fm
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Do you know the stock's PE ratio before the "AAAAAAAAH!!!"? Maybe there were some hints there about how overvaluated the stock was.
GlenGoodman
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@k2sygvz4fm, Unfortunately that's the nature of surprise profit warnings - the p/e looks fine until... SURPRISE!