There is always a popular saying that diamonds are a lady’s best friend(s). But there’s an investor, a phenomenal ‘’the diamonds’’ have been recorded to have been lucrative. This particular person’s identity is undisclosed.
However, in this article, I will be taking you through the power of conviction, calculated risk and timing, lessons to be learned, and a few other perks.
In January and April, an investor with an unwavering belief bought a total of 90.23 million $GME shares for $53,500. Within the long term when these shares were held it skyrocketed in value, currently holding a cool price of $2.86 million- a hooping 52x return on investment.
The Power of Conviction of $GME
What actually fueled Investor success is conviction. He had clearly believed in what GameStop could offer, even when the price wasn’t at its best. His strong belief made him hold his shares for a longer duration, resisting the urge to sell when the market fluctuated.
Risk and timing
We all know that risk is an event that occurs unexpectedly, it is very important to weigh a project in terms of the risk associated with it before venturing into it. But in this case, he purchased $GME when it was relatively low. This wasn’t simply blind luck. Understanding such factors and identifying them is crucial for any investor making an informed decision.
Lessons to gain for aspiring investors
This story teaches so many things, aspiring investors must take note of. A few are listed below;
1. Do your own research (DYOR):
Before buying any stock whether $GME or any other, it is advisable to conduct thorough research on its financials, company, and market as well.
2. Structured Strategy
Don’t just follow trends blindly. Create a well-defined investment strategy that matches your risk tolerance and whatnot.
3. Volatility
The stock is volatile, and as such be prepared for ups and downs that are likely to occur in $GME when the market is fluctuating.
4. Diversification
A very important lesson to take note of is, do not put all your eggs in one basket, separate or spread all your investment to various investment opportunities to mitigate risk(s) that may occur in the long run.
5. Know when to sell
While in possession of stocks like $GME, coins that are promising. Knowing when to sell them off is very important.
Conclusively, Investors’ story serves as a guide to many aspiring investors, and potential investors out there to be responsible in investing, calculating risks, diversifying their investment portfolio, and what the market is saying at every point in time.
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