What ? Smallcap newsletter telling subscribers to bail out from pot stocks after being bullish for years and after staying invested for over 3 years, now getting out at losses between 40-80pc.
This is what I mean by staying with a theme for too long when the ship has already set sail ....ironically, marijuana is supposed to be a supported thematic play under Dems and more loosening of regulation can be expected going forwards...
Pot stocks are just speculative play and we should understand these stocks for what they are....one could achieve 100-200pc gains within days or weeks with these stocks but hold them longer you could end up losing a sizeable chunk of your capital.
Important to understand the character of you stock. If it has a lot of speculative fervour , we should know to take some profits at the height of exuberance even though HC forum can try to convince you its a 10x bagger in the making.
This is another example of why long term investing as in holding for longer and refraining from taking superprofits when they become available within shorter periods beyond your expectations, could end up contrary to your interest. Not only would you have forgone better short term gains, you end up holding the bag and with considerable losses as the above example shows. 3 years later with 40-80pc losses, money that could be used to make elsewhere in other more profitable sectors.
