Fool me once shame on you, fool me twice...

Just like every bubble pattern that's ever come to fruition, the great Canopy and the rest of the marijuana sector are no different. This story won't end in flames, but similar to bubble patterns you've seen in bitcoin since inception, there will be ups and downs. However don't be fooled by the crowd mentality. Although these trends might be around for years, things don't go to the moon overnight. By studying and being prepared to trade these long term bubble patterns, we won't be caught by surprise at any point in our trades. Over the last year I've truly begun to embrace the cyclicality of these trends, and it's brought me tremendous success. Have confidence in the fact that these things will play out as they have with every bubble pattern in the past. We will be ready to hold through the turbulence on the way up, sell near the peaks, and profit on the volatility following the bubble runs. There will be some small action to come around the sector in the near future, but if history has anything to say about it, it looks like the sector might go to sleep until legalization in Aug. Which coincidentally coincides with the time every year when the sector bottoms and begins to heat up. Coincidence, I think not. I'll be ready to fill my bags come July and Aug, I hope you will be too.

評論:

As you can see, things have played out up to this point just as planned, just as it did last year. Regardless of the bills and the legislation moving forward, and deals and news going on with each company we are still in the later stages of the market cycle. The hype is gone, the volume is gone, the leverage traders were using is gone. I don't write this to bash those that chose to believe that the latest highs on Canopy and other companies would break due to legalization being relatively close. I do this simply to educate on market cycles and bubble patterns. You can see that just like last year, the same, exact, pattern.... is playing out as we speak, it just seems that the market cycle is speeding up slightly. It has a bit more range and volume compared to before. I hope this teaches some people a lesson about being patient, waiting for prices to become cheap again even though we all like to be relatively active in our trading. Sometimes being all cash and holding onto your winnings so the market cant take them from you is the best thing to do. Enjoy what you've made, sit on it, appreciate it. Sell into peaks, and expect market cycles to play out over and over again, and wait for the proper opportunities to buy. I'll have another update in a couple months regarding the sector's health and where we stand. But, i expect it to play at just as it has the last several years while the market was young. Be safe out there.