Many people average down without even looking at valuation. They just rely on faith that this is SpaceX, that this kind of company can’t possibly fail, and they keep stubbornly holding all the way through.
But once the valuation bubble after a newly listed stock starts to burst, there really isn’t any technical “bottom line” to rely on. Catching the falling “golden knife” comes at the cost of getting the hand pierced through before they remember to complain about how the rebound has no strength.
Take a look at those in the crypto exchange world who trade high-leverage contracts to gamble on U.S. stock IPOs. They refuse to cut losses for more than ten days, and meanwhile on the platform they cry and call for help, demanding liquidation—like they’re about to blow up.
Even if the U.S. stock market’s leading companies have solid fundamentals, during the phase when new IPOs squeeze out the bubble, leveraged positions still can’t withstand this kind of slow, gloomy downtrend. What the market lacks isn’t this kind of faith.
$SPCX
But once the valuation bubble after a newly listed stock starts to burst, there really isn’t any technical “bottom line” to rely on. Catching the falling “golden knife” comes at the cost of getting the hand pierced through before they remember to complain about how the rebound has no strength.
Take a look at those in the crypto exchange world who trade high-leverage contracts to gamble on U.S. stock IPOs. They refuse to cut losses for more than ten days, and meanwhile on the platform they cry and call for help, demanding liquidation—like they’re about to blow up.
Even if the U.S. stock market’s leading companies have solid fundamentals, during the phase when new IPOs squeeze out the bubble, leveraged positions still can’t withstand this kind of slow, gloomy downtrend. What the market lacks isn’t this kind of faith.
$SPCX