I think we need to be careful with tickers that have many derivative products (Tesla, Palantir, etc. T_T) | |||||||||||||||||||||||
Created at 5 7 | |||||||||||||||||||||||
| I heard this from a YouTuber, so please just use it as a reference. Taking an underlying stock like Tesla or Palantir as an example, stocks with many related derivative products—such as 2x/3x leverage, inverse, covered calls, etc.—are said to have massive trading volumes almost every single day. And because they are heavily held by retail investors, they are easy targets for market manipulators to play around with and shake out, which is why the volatility is said to be incredibly high. Since all of these stocks are currently highly valued, it doesn't matter much for existing long-term investors, but those looking to make a new entry or start investing should be careful~ When individual stocks and indices start falling like this, I think it's better to switch to index funds at the bottom and invest long-term with peace of mind. This is something I realized after getting bruised, beaten, and losing money for years, so my goal is to turn this decline into an opportunity and keep investing until I become a grandmother... Let's all stay healthy and invest long-term together T_T Cheer up!
Tags: ETF GOOG PLTR TSLA | |||||||||||||||||||||||
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