This year we have seen some massive jumps from Tesla, Gamestop and now Dogecoin, a lot of retail investors have made a large amount of money.
I joined the GME hype early and with my friends got very involved in it, checking the price all day and investing more and more as the stock went up. Luckily I exited most of my positions for a nice profit, but most of my friends were not so lucky.
It is incredibly easy to get swept away in the excitement and hear and see people making a lot of money. But you always need to remember for everyone that makes money someone else on the other side of the trade normally losses money. Everyone wants it when the price is going up as they think they can sell it for more, but once it starts falling everyone else wants to sell.
As with all investing and things in life, if it sounds too good to be true, than it probably is! Always invest with an amount you are comfortable with, be realistic with your returns. Do not chase massive returns or be greedy, take a profit and be happy with it.
Dogecoin is the latest hype buy after seeing a massive rise in price, but as the early investors take their profit a lot of new investors will most likely end up taking a big hit. With high losses above 95% possible. There has also been a large increase in celebrities pushing certain coins/stocks, with Elon Musk being a big pusher for Dogecoin.
There has also been an increase in people looking for the next “big thing”, which has lead to an increase in pump and dump schemes and other similar scams. Always do your own research and buy through legitimate brokers/exchanges.