Few things are more emotional than a stock that's skyrocketing.
GME did such a thing and the world lost its mind.
AMC caused the same reaction.
The problem is: it's nearly impossible to jump on a Monster Winner midstream.
When it's shooting upward, it's super hard to know when to enter, and the entries themselves can be incredibly hard to get.
For example, you think you're getting in at $100 and your fill comes in at $120 because the market is moving so fast and your broker doesn't care about you.
Just that tiny problem of entering can cost a trader 20% (if it moves far beyond your desired entry point).
Beyond the actual execution, there is the emotional problem. Rising stocks create visions of beach houses and butlers, and no one trades well when thinking about what color tux their butler is going to wear.
So, is there a solution?
Sure.
Just don't get involved in stocks going to the moon. There are thousands of other instruments to make money on.
Or you could wait for a pull-back.
It can be very hard to try to make money on an emotionally-charged instrument that's surging violently.
It can be very relaxing to wait for a pull-back and get in then.
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