During stock recommendations, a lot of analysts would have recommendations of stocks ought to buy, but investors also should put an eye on stocks ought not to buy. For if you lose or bonded in one stock, you need to win in several stocks to cover it.
Since November 2024, I told investors no need to buy AMD in a hurry for several times while a lot of pole encouraged to buy at low. Ultimately, it becomes lower and lower after months. Those wished to buy at a cheap price, but the price becomes cheaper and cheaper.
The reason is that the falling trend of AMD had not yet been finished, it is much weaker than NASDAQ and Philadelphia Semiconductor Index. Practically, it is very hard to catch the bottom. So when you buy at a falling trend you have to prepare well for a second, third, fourth or even more buying less be disappointed. When stocks of actual power like NVDA or TSM had a breakthrough downward, it is always a time to buy at low. Sometimes those breakthroughs are false, it is because of the environment and their actual power would bring them up. The fact is that when Tariff War comes they still would rise again but not others.
AMD formed several W-shapes and even had breakthrough upward but still goes down. It has no Harami so it is false, please consult the Handbook of how to tell a true pattern from a trap. The volume is large when falling and small when rebounding. Or you can say some other day it surely will rise again for its one of the AI-5 stocks, I agree! But thus will lose a lot of opportunity cost and time.
So those that buy falling stocks should prepare well to wait for a longer and longer time. Better buy stocks of tomorrow like PLTR which said to be the next TSLA, and TEM which will be the next practical usage of AI era.
About the Author
Daniel Yue has been an active investor since 1980, with experience spanning stocks, currencies, futures, metals, and bonds. A scholar of the Chicago School of Economics, he holds a Certificate with Distinction from Cambridge University and a degree in International Trading from National Taiwan University. He served as Chief Analyst for over 30 years and Chief Mentor at Sincere Finance. In 2017, he received an award from the University of Arizona for financial internship leadership.
The analysis and opinions expressed in this article are for educational purposes only and do not constitute financial advice. Investing involves risk. Please consult a qualified financial advisor before making investment decisions.
About the Author
Daniel Yue has been an active investor since 1980, with experience spanning stocks, currencies, futures, metals, and bonds. A scholar of the Chicago School of Economics, he holds a Certificate with Distinction from Cambridge University and a degree in International Trading from National Taiwan University. He served as Chief Analyst for over 30 years and Chief Mentor at Sincere Finance. In 2017, he received an award from the University of Arizona for financial internship leadership.
The analysis and opinions expressed in this article are for educational purposes only and do not constitute financial advice. Investing involves risk. Please consult a qualified financial advisor before making investment decisions.