I'm about to drop ALOT of money into truth social (DWAC) but should I wait? Any pros out there with advice? I don't want to make the wrong move.
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I was a futures trader, not stocks. But your words, "...drop ALOT of money," and, "I don't want to make the wrong move," has red flags all over it. No trader ever goes all-in on anything, or makes an investment without understanding fully what he's doing. With all the warnings about an impending crash, I would wait.
yea im not a pro or anything and am kinda new to stocks, and i know its risky but i am going to pull the trigger with money i can afford to lose, but id rather not make the wrong move.
The all time high was 175.00. DWAC is sitting at half that right now.
I used to work with some traders, and your comment was a common error. It's called "high-side bias." Without going into a lot of analysis that you didn't ask for, let me just point out that DWAC started being a "thing" at $9. That's your risk-side bias, the flip-side of the trade. A trader must always measure risk vs. reward, and not be manipulated by their subconscious desire for potential gain.
Correct. But the all-time high also shows what a security is capable of reaching and reflects the amount of potential headroom left for the stock, even if it's nothing more than a psychological benchmark. I bought a lot of DWAC at 12.75 and somehow managed to sell a nice chunk at 175.00 (my timing is not usually that good). I'm still sitting on a few thousand shares and waiting for the launch.
happened to be on GAW when the post came out about dwac dwacw . i got in on warrants at $3.00 but did not have funds enough in account to buy dwac watched the stocks soar with numerous circuit breakers. since picked up more dwac and holding. Whoever posted with the heads up on early release of the stocks i thank you
That was the first day it launched. From my point of view, I got in @ $62 a share and not doing too bad a month later. DWAC is a long term investment. IF it's successful it's market share is going to be worth more than the current $85 a share or it's all time high of $175. Maybe we can revisit this conversation in 2025?
Exactly. I'm in it for the long term. But I couldn't let a 15X multiple go by either.
Exactly. I would have sold at 15x, pocketed a little cash and bought back in after the huge dip.
Warren Buffett would counter and say you do go heavy on one thing when you know it's going to be good. He said that is more effective than diversifying (I think his words were, any idiot can diversify). I see his point, but to your point, yeah if you don't know what you are doing, going in on one thing could be disastrous.
This is precisely the reason why Buffet's advice is disastrous for small investors. He has the luxury of a massive amount of cash, so, he can afford to wait out a trade that goes against him, or even sell at a loss. This could be enough to completely wipe out someone just getting started. ALSO...he is privy to information that the rest of the investing world doesn't have.