How to Protect Your Investments in Volatile GameStop Market
Who really needs meme stocks like GameStop Corp. (NYSE: GME) and AMC Entertainment Holdings Inc (NYSE: AMC), when the overall U.S. market keeps on flying high? The good ol’ trusted S&P 500 (INDEXSP: .INX) closed at another record high after four consecutive green days this week.
The GameStop saga has shown newbie or renegade investors a thing or two, however: The efficiency of a market. News outlets said the stock market is broken on the backs of hedge funds losing billions in the GameStop stock run-up. But, the fact is the stock market will eventually spotlight any unbalances, misallocation of capital, and misguided investors. The market is the ultimate crucible of truth, no matter the corruption and collusion, simply due to the forces of supply/demand.
So, how does this help the FOMO traders who chased the meme stocks explosion, only to now be holding the bag?
Watch the full interview for trading strategies and golden rules to determine when to trade a price break-out or break-down.
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