Pump and Dump - Trading Journal (2.11.21)

I have not be trading long but have observed markets for over a decade and can say recent individual stock rises is very concerning in that likely many retail traders are trap with large losses. Why? The old game of getting trap in buy high and sell low is happening almost daily now. Retail traders chasing fomo but getting trap in buying too high. Examples such as GME, AMC, and BB. Even commodities such as SLV, AG and other related silver tickers boomed for a couple of days before it dropped back to earth the next. Then now we have cannibals tickers such as SNDL and TLRY.

TLRY rose for about a week but as of today lost most of the entire pump up. A lot of traders who bought in on the way up are now trap on the buy side. It may take days or even years for the price to reach back to these levels. Worse case it never reaches back to these heights. We shall see how this all plays out but not good to be trading when chasing FOMO.

The old school of a pump and dump is occurring more often than not now likely due to retail traders participating a lot more. Just the past week over $25 billion in flow into the markets.

The allure of hitting it big and winning in stocks was proven in 2020 and start of 2021, however it can not last forever. If retail is partaking now and likely FOMO mode since so much money is flowing into the markets it should be made aware that certain stocks that rise too quickly is likely too good to be true.

None of what I write is financial advice. It is for entertainment purposes only. Thanks for reading!

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