QNC vs CRON – The Dangers of Herd Mentality and Irrational Exuberance in Microcap Investing
It is not uncommon for microcap investors to chase momentum and “stories” that latch on to a popular trend or topic. Over the years I have seen this with commodity rallies in gold or oil, world-class discoveries of other metals and minerals, legalization of Cannabis in Canada (and the two years leading up to it), […]
The Elusive Nature of Bubbles: Insight and Ten Books on the Subject
In 2024, crypto is creating bubbles in the microcap space while NASDAQ is being fueled by big tech. Predicting market bubbles is notoriously difficult. The line between a justified bull market and an unsustainable bubble can be blurry. Even the smartest investors can make mistakes either predicting a bubble that doesn’t materialize or missing one […]
Playing with Profits: How the House Money Effect Can Derail Your Micro-Cap Strategy
Micro-cap investing offers the allure of explosive growth and landing a multi-bagger can feel incredible, validating your research and risk-taking. But beware: those very profits, if not managed psychologically, can become the seeds of future losses through a common cognitive bias known as the House Money Effect. Understanding and combating this effect is crucial for […]