A company called Carvana (CVNA) and another one called Salesforce (CRM) are doing well in the stock market. People want to buy their shares because they think these companies will make more money in the future. So, some people wrote an article about how you can also buy these shares and maybe make a lot of money too. They say that if you buy now, you might be able to sell them later for twice the price or even more. That's why they call it a "200% gain". Read from source...
- The author claims that 200% gains are often possible with these types of trades, but does not provide any evidence or data to support this claim. This is a common fallacy in trading and investing, where people assume that high returns are achievable without considering the risks and challenges involved.
- The author also states that since these trades cover periods that include earnings releases, they can be coin-flip events. This implies that the outcomes of these trades are random or unpredictable, which is not true. Earnings releases are public information that can be analyzed and forecasted using fundamental analysis and other methods. The stock price movements before and after earnings are influenced by many factors, such as expectations, sentiment, news, etc., but they are not completely arbitrary.
- The author does not explain why he waited for prices to come down before betting on the trade. This is a vague and unscientific reasoning that could be based on intuition, luck, or emotional bias. A better approach would be to identify specific technical or fundamental indicators that signal a good entry point for the trade, such as support levels, moving averages, valuation ratios, etc.
- The author does not disclose any of his trades or performance statistics, which makes it impossible for readers to evaluate his credibility and track record. This is a serious flaw in any investment advice or research, where transparency and accountability are essential for building trust and confidence with the audience.