How To Spot Parabolic Stock Moves Coming Like GameStop (GME)
GameStop Corp. (NYSE:GME) massive move from last week to today has been the talk of the Wall Street and online trading group towns. A short squeeze set the stock to rally up to a high of $145.59, an incredible 238% since last Thursday.
Chasing the stocks that make these huge parabolic moves is not a sustainable strategy, however.
Finding value with a longer-term horizon while understanding momentum and shorter-term trading is always your best bet. Don’t chase stocks that are up huge because of the fear of missing out (FOMO) and get stuck holding the bag as stock prices oscillate violently. GameStop for example has been up to $145.59 and down to below $62 within the last hour of writing this.
As Jeff Zananiri says you would “rather have a racehorse you have to reign in, than a donkey you have to kick in the a**.”
Watch the full interview to see our trading and risk mitigation strategies.
Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.
Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.
Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.