Hyper Trading. $GME. $AMC.
Jan 28, 2021Hyper Trading. $GME. $AMC.
The market has become highly volatile and less predictable over the last few days. GME, AMC, and a few other stocks have become hyper-active after the initial short-covering squeeze occurred this week.
Below are the daily/1-hour charts for both of these stocks. For anyone who has been trading for more than a few years, you know that this will end badly for a large number of independent investors. New traders who jump into the hype often trade pure momentum events without stops in place and then they add to the damage by adding on to their losing trades.
Accounts will be thrown away in emotional trading as traders seek to find quick gains.
In the chat room, I did not post high-probability trade set-ups for either of these stocks. The reason is simple: the risk: reward ratio does not favor a positive result.
I'm sure there are a few traders who will do well with these long positions. The cynical me expects them to be opening a lemonade stand in the next few weeks, saying how they became rich overnight with their trading success.
But I'm writing this post to give you the perspective of over 12 years of trading the markets. Beware. If you feel that you MUST trade these stocks, then use only money that you can afford to put in the trash can. In that way, if the trade works out, then you'll be okay with the outcome and you won't be surprised.
To your trading success.
Interested in Bob Joiner's day trading chat room?
At the following link, you'll find a 2-minute video overview and a link below that video to receive more information.