T/A Tools To Identify a Turnaround
Some investors specialize in identifying stocks that are potentially bottoming out after a prolonged decline or trading near their 52-week lows, hoping to catch the beginning of a new uptrend. Here are some technical analysis (T/A) tools and indicators that investors might utilize when looking for stocks making a potential turnaround: 1. Volume Analysis: 2. […]
Finfluencers and Paid Promotions
Social Media Stock Tips Platforms like YouTube, TikTok, Instagram, Reddit, and X (formerly Twitter) have become go-to sources for investment ideas, particularly for younger investors and those new to the market. Finfluencers are online personalities who cultivate followings by offering financial advice, investment tips, and market commentary. They range from registered professionals to, more commonly, […]
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 […]
Understanding the Psychology Behind Short-Term Investing and the Gamification of the Stock Market
The investment landscape has undergone a significant transformation in recent years, moving beyond the traditional image of patient, long-term wealth building. Today, a growing segment of investors is drawn to the fast-paced worlds of short-term trading, cryptocurrency, and other asset classes that offer the potential for rapid gains. This shift is fueled in part by […]
Navigating the Impact of Options Trading on Microcaps and Penny Stocks
The explosive growth of stock options trading, fueled by technological advancements and a shift in retail investor behavior, presents both challenges and potential opportunities for this unique segment of the market. While options have been a feature of the financial world for decades, their recent surge in accessibility and popularity is undeniably reshaping investor focus […]
The Benefits of Tracking the “Who’s Who” in Microcap Investing & Finance
The microcap market, a fertile ground for both groundbreaking innovation and speculative ventures, presents a unique challenge to investors. While the promise of high-growth potential is alluring, the landscape is often opaque, with information less readily available than for larger, more established companies. In this environment, understanding the individuals and entities behind a microcap company […]
Tuning into the Buzz: Leveraging Social Media and Message Boards for Microcap Insights
Social media and public stock forums have fundamentally changed how investors communicate and share information. While these platforms are often associated with hype, misinformation, and pump-and-dump schemes, they also offer a unique opportunity to tap into the collective wisdom (and sometimes, folly) of the crowd. For micro cap investors, who often deal with thinly traded […]
The Rise of the Machines: How Automated Trading Impacts Microcap Stocks
The stock market has undergone a dramatic transformation in recent decades, driven largely by the rise of automated trading, also known as algorithmic or “black box” trading. While these sophisticated computer programs are most commonly associated with large-cap stocks and high-frequency trading, their influence is increasingly felt in the microcap arena. This article will explore […]