Studies show that most people who try to buy and sell individual stocks end up underperforming the market. But it can take years to acknowledge that you yourself are one of those people.
Luckily, a quick and easy test has presented itself. If you sold META below $100 last November, you definitely shouldn't be trying to buy and sell individual stocks.
The volume chart shows huge quantities of shares traded hands down there below $100. If you are one of the people who sold, you're not good at this. You have lousy skills and bad instincts. You will cost yourself massive amounts of money if you continue to try to buy and sell individual stocks.
META was clearly undervalued when it bottomed last November. Anyone who sold was completely misunderstanding the company's prospects, or was panicking based on recent price action, or both… indicating someone who does not have what it takes to successfully buy and sell individual stocks.
Almost all of us should probably avoid individual stock-picking and just stick to the S&P 500. But there are some who definitely should avoid it… and if you sold META below $100 last November, you're one of them.
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