Cautionary Note on Stock Mania

Cautionary note to my friends: As a longtime investor, I am seeing a lot of stock newbies getting sucked into a very overhyped markets and falling for scams. A lot of people right now online are doing a variety of pump and dump type schemes on a variety of stocks (Gamestop, AMC, Blackberry, etc). These people are persuasive, but they are hoping to con you into buying their shares. This especially includes social media influencer types you may follow online.
Read more about how pump & dump’s work here – https://www.investopedia.com/terms/p/pumpanddump.asp
Also – avoid the greater fool fallacy… you might think you will be able to get out before the top, but statistically it is pretty unlikely. https://www.investopedia.com/terms/g/greaterfooltheory.asp
Even if you happen to the one of the very few lucky ones who times getting out right before the crash, continuing to follow this pattern of behavior will wipe you out eventually. The smart decision is to keep in mind that stocks are just small chunks of real companies. Find stocks that are good long term companies and have a low price right now.
FYI – I have no positions related to the pump and dump / greater fool stocks, so this is just honest clean advice.

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Joel Gross

Joel Gross is the CEO of Coalition Technologies.

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