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SCAM EXPOSED !!!! Now , to be fair, if you are an armchair investor like me, the chances of flying down to the factory as part of your research is not high nor likely. All that you read about its performance, contracts, etc are available on its websites.
Research firms like Wolfpack acts like whistleblowers in the stock market by spotting these fraudulent firms and punishing them by short-selling their shares.
So as a retail investors, what can you do to protect yourself from such situation ?
Well, in my case, this is what I do -
1. A diversified portfolio - I make a conscious effort to diversify my allocation into different countries, sectors and even within the same sectors, different companies. Example - my vested interest in Geely Auto, NIO and Lithium battery ETF
2. Stop loss - I cannot say enough of this and how this important element has protected me all these years (especially when I turned into a greedy monster from time to time). I do this periodically or sometimes daily like recently when the market is moving aggressively. I would shift my stop loss to breakeven or a certain target once it reaches the next milestone. That way, I am free from monitoring the share price and in event of any big news or crash, I am assured of breakeven or a certain profits. This works for my losses as well so that I only allow a certain loss % or value and not shift my stop loss level further if price action moves against me.
3. Taking profits - Some traders are afraid to take profits for fear of the price going higher and they having to buy at higher point. When you understand how price action works, there is no fear. The idea of investment in the stock market is to make money and it is through withdrawal of funds that you truly see your money. Use it to reward yourself or to fund some goals that you have - eg. a vacation, buying a new laptop, fitness equipment, etc. Raise your standards in other parts of your life so that you are constantly motivated. No point having all these paper profits and worrying at night if it will still be there the next day.
4. DYODD - That is the least you could do and if market moves against you, learn from mistakes and move on. If you have applied item 2, then your damage is contained.
5. Pick the right stocks - this is such a huge topic that I decide to write another article the next time.
SCAM EXPOSED !!!! Now , to be fair, if you are an armchair investor like me, the chances of flying down to the factory as part of your research is not high nor likely. All that you read about its performance, contracts, etc are available on its websites.
Research firms like Wolfpack acts like whistleblowers in the stock market by spotting these fraudulent firms and punishing them by short-selling their shares.
So as a retail investors, what can you do to protect yourself from such situation ?
Well, in my case, this is what I do -
1. A diversified portfolio - I make a conscious effort to diversify my allocation into different countries, sectors and even within the same sectors, different companies. Example - my vested interest in Geely Auto, NIO and Lithium battery ETF
2. Stop loss - I cannot say enough of this and how this important element has protected me all these years (especially when I turned into a greedy monster from time to time). I do this periodically or sometimes daily like recently when the market is moving aggressively. I would shift my stop loss to breakeven or a certain target once it reaches the next milestone. That way, I am free from monitoring the share price and in event of any big news or crash, I am assured of breakeven or a certain profits. This works for my losses as well so that I only allow a certain loss % or value and not shift my stop loss level further if price action moves against me.
3. Taking profits - Some traders are afraid to take profits for fear of the price going higher and they having to buy at higher point. When you understand how price action works, there is no fear. The idea of investment in the stock market is to make money and it is through withdrawal of funds that you truly see your money. Use it to reward yourself or to fund some goals that you have - eg. a vacation, buying a new laptop, fitness equipment, etc. Raise your standards in other parts of your life so that you are constantly motivated. No point having all these paper profits and worrying at night if it will still be there the next day.
4. DYODD - That is the least you could do and if market moves against you, learn from mistakes and move on. If you have applied item 2, then your damage is contained.
5. Pick the right stocks - this is such a huge topic that I decide to write another article the next time.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.