Thread by @team3dstocks

Some strategies are timeless simply because human behavior doesnt change. Example jesse livermore spoke about support/resistance, trend following & relative strength/weakness etc 100 years ago, & they still work today.

Bagholders are predictable bc human behavior is predictable

https://twitter.com/Quarkamon/status/1377989073453916162

Example if im stuck bagholding 1M shares of a lowfloat trash stock at a $5 avg, & the stock drops to $2, with no liquidity to bail, what am i praying to Odin? Im praying “pls lord, i dont even wanna make $ anymore. Just get this stock back up near my breakeven price & im OUT!!

Now imagine if multiple cunts are bagged near that same avg, all thinking the same. That creates a wall of sellers near $5. Lets say 3M shares total. Once the stock gets back up there weeks later,if there is not at least 3M shared worth of demand at that area, the stock is toast.

Reverse the scenario for a long setup (shortsellers are now the bagholders 💼). When a stubborn bear is bent with a $5 avg and the stock goes to $10, trust me, he’s no longer trying to make money. He just wants to be lucky enough to breakeven. So any dip to $5 & he’ll post bids.

Now do u know for SURE that the bagholders will try to break even? Of course u fucking dont. But the odds are high. Trading is about probabilities not certainties. That’s why u WAIT to see what happens first. And that’s why u manage risk/stop out if wrong.

#BearTipOfTheDay