If you’ve been reading my work for a while now, you know that I like to “date” stocks.
I’m not looking to marry them…
Okay… I admit the joke was funnier as a bachelor.
Last year, I married my wife, Meghann, and we just welcomed a new baby into the world last weekend.
And I’m extremely happy about that!
But when it comes to my stock approach… I like to keep things casual.
You see, I only want to own stocks during the good times. Every stock I trade is a fling… nothing more.
The moment I see red flags, I’m out of there and not looking back.
Here’s a perfect example of why I feel this is the better approach to the stock market…
I was checking out the Meta Platforms, Inc. (META) earnings release on Wednesday.
The company missed on both the top and bottom lines and gave investors a weak forecast for the next quarter.
The stock lost about 5% of its value as a result, but it is now down nearly 60% from its all-time high.
It’s back to levels that were first hit all the way back in July 2017, meaning the stock has gone virtually nowhere for five years!
That got me looking at other social media companies… and I found something quite interesting.
Take a look at Snap Inc. (SNAP), for example.
The stock has now dropped 79% this year and nearly all the way back to its pandemic lows.
With the recent decline, SNAP is down a whopping 60% from where it opened on its first day of trading back in March of 2017!
So much for buy-and-hold investing!
Need another example? How about Twitter Inc. (TWTR)…
TWTR stock is down a bit more than 9% since the open on its first day of trading all the way back in 2013!
Can you imagine holding a stock for nearly 10 years and having no profits to show for it?
Lastly, let’s look at Bumble Inc. (BMBL)… This is a different sort of social media platform, but the story is the same.
The dating-app platform hasn’t had much time to prove itself. But in the year and a half since it came public, it lost as much as 80% at one point.
And it’s currently down over 50% from its first day of trading.
Don’t Be a Bag-Holder
Okay, so why am I telling you all of this?
Well, the goal of a stock trader is not to find names to hold forever… at least not if you want to outperform the market.
The goal is to generate the largest possible gain in the shortest amount of time and compound your returns.
That’s the secret to super performance.
Now, you may be thinking to yourself, “Yeah, but I own good stocks. They’re market leaders. They aren’t going anywhere.”
Sure, that may be true for a while… And there have been really great moves in each of the stocks mentioned above over the years.
If you caught them when the time was right, you could’ve done well for yourself. That’s the advantage of trading them!
But every year, stocks that were once titans of industry collapse. And every fall delivers large losses to investors who thought they could hold forever.
So, don’t get attached and marry your stocks. Instead, date them, and let the good times roll…
Ready for the Big Show?
Before I go, I need to invite you to a LIVE special event happening on TODAY at 12 p.m. ET…
My colleague and expert trader Josh Martinez is set to unveil his brand-new professional-grade system that virtually anyone can use with minimal upfront investments…
We’re talking as low as FIFTY BUCKS! You don’t want to miss this!
I look forward to seeing you there!
Embrace the surge,
Editor, Stock Surge Daily