You got it wrong, mate.Professionals, as a group, are more successful than retail investors - not because they predict price movements better, but because they execute trades better. That includes money management and especially risk management when their predictions don't play out.
What do retail investors often do when the price goes against their expectations?They double down - “it can’t go lower,” “this is the bottom,” “the fundamentals are strong,” “it’s heavily shorted, the squeeze is coming,” “it’s oversold,” and so on.
“20%+ gain once the dust settles” - I guess that’s what many retail investors were thinking when they bought at $3.50, then $3.00, then $2.50.I’m not blaming anyone - I’ve done it myself plenty of times.But I believe this is one of the main reasons most retail investors lose money. I’m just using data to show why it happens.
Retail buying continued on Thursday as well.
NUF Price at posting:
$2.38 Sentiment: None Disclosure: Not Held
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