$Futu Holdings Ltd (FUTU.US)$ Futu started the week well but...
$Futu Holdings Ltd (FUTU.US)$
Futu started the week well but ended just slightly higher than last Friday despite the good news.
Futu started the week well but ended just slightly higher than last Friday despite the good news.
I do understand there are many who are trapped in this stock. The same goes me too in other China stocks.
If you are here trading hoping to make money fast because futu will fly to the moon, you are probably in the wrong stock because futu is in a long term downtrend and it will take a period of consolidation before it can reverse this downtrend. It is not a pullback or correction territory where it can do a V shape recovery. This consolidation that will happen after a long term downtrend can take months and sometimes close to 1 year. So coming in to futu now is definitely not a get rich fast stock like many US stocks which is flying to the moon now like tesla.
Futu is essentially in a bear market condition where investors confidence is broken and only the real bulls who have researched and have conviction in this stock will keep adding at various support levels. Don't be surprised there are even real futu bulls who are super convicted in this stock that has not added much yet as they are still waiting for the bottom or a clear buy signal before going all in.
People who do not do enough research or understand the company well enough will be emotionally affected and thinking why the stock just keeps dipping everytime they add positions. While the real bulls are smiling adding to positions because they understand what this stock is worth to them and they are in fact buying at a discount.
Trading point of view this stock has almost no signal for you to go long now. And you will be better sitting at the side now waiting for it to hit a good support level before buying in rather than randomly buying in at whatever small dips and eventually run out of bullet the time it hits the critical support level.
I personally will start opening positions on this stock when it hits 36 or 45 range as I am pretty confident a stock like futu will probably not break that critical support and head down towards 26 critical support.
But as always, trade safe & invest wise!
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Danny Phan Kway Choy : already give up.
Investing 101 OP Danny Phan Kway Choy : Dont give up on a stock you believe in just because of short term volatility. Like baba, I was waiting for 140 critical support when everyone keeps thinking it will not hit that price. I bought in when it hit 138 and it has not hit that bottom again. But I was camping there for at least 4 months. Just have to be patient, buy in at the right price and let it do its job!
ShaoWei and June : Thanks for the very balanced argument. It helps me better sense what’s happening here. Frankly I was doubtful of your intention of your previous posts that sound like trying to move sentiment as a shortie. Let’s hunker down for now, but may we soon gain from this stock’s strong fundamentals in the long haul![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Investing 101 OP ShaoWei and June : Yes China stocks will take some time for recovery due to clampdown and investor sentiment towards the market. Some will always wait for few quarters to see how the new regulations affect earnings for various sector.
Everytime a stock or index hits a bear market, it will have a consolidation at the bottom before regaining momentum and breaking back into new highs.
The only exception was last year March 2020 when it S&P500 rebounded so fast after covid sell off due to many new investors entering the market after waiting for a crash for the last 12 years. Thus the sharp rebound.
If you see my posts on various stocks. I am Not overly bias on anything and will see it in a neutral stance. If you are overly bias or what some call fall in love with a stock, you will have a lot of blindspots and that will make you lose money. Read the chart objectively and plan out your trades properly.
Paul0619 Investing 101 OP : Agree, need to make decision on logical analysis rather than emotion. Those who keep adding saw the price is halved and rushed in . Eventually they will lose a lot, opportunity cost or real loss, people need to know that the fundamental or valuation has changed, given the current compliance situation.