The thing about "hot" stocks is that they're being pumped and dumped. When there's a lot of buzz and hype about a stock, it's being pumped. People rush in and start buying. The increase in buying and demand is what causes the stock price to rise. Once the hype fades out, the price stops rising and everyone starts cashing in and getting out. As the orders to sell increase, the price begins to fall. This creates panic and everyone starts selling. The price falls faster and faster as no one is buying so you have to put in orders for lower and lower sell prices to get rid of your shares. The only people buying at this point are the suckers who found out too late or don't know what they're doing. You can still make money on these, you just have to time your entry and exit and be quick. I've been in an out of positions in a matter of minutes before. You can also take a short position at the peak of the hype and profit on the downfall. If you buy one of these to hold long term, you'll probably lose your ass. If you want to hold something long term, research the company and don't buy when there is hype. What a lot of people don't know about stock market tips is that these promoters are often paid in stock, or have already purchased large amounts of shares and then are attempting to create hype about the company to inflate the price so they can sell. Sometimes, it's crooked CEOs paying someone to hype the stock of their BS company so they can cash in and shut down the business. If a stock is worth $1, and you purchase, own, or are given 50,000 shares and you pay stock promoters $100,000 to hype up your stock, it could rise $2, $3, $4, fuck up to $10 a share in a day or two, then it will crash. If you sell your 50,000 that you got at $1 for $5 a share, you're making $200k in a day or two (minus what you paid for promoters)... there's big money involved, so tread wisely and so some research. Google Timothy Sykes and watch some of his videos.
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