This is a sobering reminder of the other side of booms, nearly...

This is a sobering reminder of the other side of booms, nearly 20 years later and anyone who bought the high is still sitting on >90% loss, imagine the poor suckers who averaged down on that one and you can be 100% certain many did!!



You can pick any of the materials sectors from that era, coal, iron ore, copper, nickel, coal seam gas, coals to gas, coals to liquids, etc etc ... most of the big booming specs are either no longer listed or have changed commodities multiple times since then and most will have consolidated their register, probably multiple times. I remember in 2008 lots of the old dotcom specs suddenly reinventing themselves as coal/coal seam gas stocks, it happens over and over again, always has and always will. As Livermore said, "wall streets never changes, the names change, the pockets change, the suckers change but wall street never changes, because human nature never changes". What's the next boom sector is imo where people should be focused rather than stuck hanging onto a dead sector like lithium/graphite/etc

One of the key reasons I use charts is they provide a tool to time entries which is key to effective risk management, if I'm wrong I sell(over the long term i'm wrong nearly 70% of the time fwiw, i make money because my wins significantly outsize my losses). The problem with pure funnymentalists is when they buy and the stock drops then it's an even better buy and so on as the stock collapses, eventually they find out the funnymentals weren't quite the funnymentals they thought they were and by then it's too late and they're wiped out. There are a tiny few people who are still on HC nearly 20 years after I joined who are pure funnymentalists, the vast majority have left the markets because they wiped out, risk management is the number one game if you want to last long enough to actually create real wealth imo