Nvidia nearly tripled within a year!
Here’s the mistake most beginners make, they love chasing SHINY stocks that have doubled or tripled… thinking that they can go higher.
But these instances are not the norm!
While Nvidia has experienced a major correction YET…
If you were to look at some of the overvalued companies in the Dot Com Bubble of 2000-2001…
Take Amazon for example…
Amazon’s high watermark of the dot-com bubble was $113 back in 1999.
When the bubble burst, Amazon traded all the way back down to $5.51 in late 2001.
Many of these shiny stocks are OVERVALUED stocks.
The most dangerous element of investing is that the market has the capacity to change how we THINK a stock is worth.
This is why many investors have lost money in popular stocks like Tesla, SEA Limited, and SMCI.
If we don’t have a proven and systematic way of evaluating stocks…
Then you’re gambling with your hard-earned money.
When the stocks you buy double or triple in value, you’ll probably feel amazing. Like you’re a genius at picking stocks…
Until the market crashes and you don’t know what to do!
Should you buy more, hold or sell?
Many will simply sit there as their portfolio goes deeper and deeper in the red.
And the losses get bigger and bigger…
Reaching the point they cannot take it and panic sell, realising huge losses.
They start to wonder where it all went wrong.
If this sounds relatable to you, then read on because I’m about to show you…