Oh, hell no.
Please don’t go buying a risky pot stock that is up 68% in one day, and nearly 200% on the week.
But what if Tilray (TLRY) goes higher?
Who cares!?!
It doesn’t matter. Yes, people are jumping in Tilray (TLRY) with the hopes and dreams that it continues to march higher.
Don’t fool yourselves, people – these things don’t go up forever, and when a stock’s move is already this bullish, your chances of losing astromnoically are through the roof. Let me remind you that back on Friday, this stock gapped over 20% lower. Yes, it did bounce, but what do you think this stock is capable of now, should it have a bad news piece or some profit taking?
You lose BIG TIME.
Trading is not about getting rich or seeing how much money you can make. Sure, the move in TLRY is absolutely fascinating, but so were the dot-com stocks in the 90’s. Trust me, eventually these high flying, carefree stocks eventually get pulvarized, and the people who take the losses are the retail traders like you man me. That’s because when the stock is rising meteorically, you will likely have the banks using the opportunity to sell their shares to the retail traders that have no clue what they are doing, but they are getting long at the end of the day because… well you know… FOMO.
The fear of missing out looms large on this stock, and if you think you are making a good, risk/reward play by buying TLRY, you are only fooling yourself with your own greedy desires.
Let someone else take the risk. There is always another trade to be had.
Right now, the stock is trading at a $24B market cap value – that is bigger than:
- Dollar Tree (DLTR)
- Verisign (VRSN)
- Hess Corp (HES)
- Twitter (TWTR)
- CBS (CBS)
- Best Buy (BBY)
- Freeport McMoran (FCX)
- MGM Resorts (MGM)
- Wynn Resorts (WYNN)
You get the picture?
