The thoughts of Spicer Matthews

The Stock Market Is a Drunken Idiot -- You Should Profit From It

Date: Feb 24, 2023

Have you ever noticed that when someone drinks too much, they become predictable? They might start talking louder or acting crazier than usual. It's as if the alcohol has unlocked a different side of their personality. Most people are pretty steady and predictable creatures when they're sober, but when they get drunk, all bets are off. The same can be said for the stock market.

The Stock Market Acting Drunk

Sometimes, stocks in the stock market behave like they're drunk. They might experience wild price swings or sudden surges in trading volume. These are the times when you can profit from the market's drunken idiocy.

Let's take a closer look at how the stock market behaves when it's "drunk."

When someone starts to drink, they become more loose and might start talking louder or about topics outside their norm. Similarly, when a stock starts to get "buzzed," you might notice that trading volume has increased or that daily price changes are starting to be different. At this point, you can't predict what will happen next, but you can take notice.

As the night goes on, the person might start drinking at a faster pace than usual. Similarly, the stock might experience even greater price swings or more volatile trading volume. This is yet another sign to take notice.

Then, the person might become visually drunk, acting crazy or slurring their words. The stock market has its equivalent of a drunken fool, with stocks that have gone off the rails and are no longer behaving rationally. This might be a good time to start trading a drunken stock. You can often guess the next outcome with a reasonable degree of accuracy.

The Out of Control Phase

Next comes the phase where the person is out of control. You can't get them to do anything, and they're just making a mess of things. The interesting thing about this phase is that you know what might happen next. The person is likely to puke or pass out. If this person were a stock, you could make a trade knowing what will likely happen next.

Almost every day, there are a few drunken stocks in the stock market. Some, like GameStop or AMC, are more well-known, but there are many others that go unnoticed. If you can identify these drunken stocks, you can predict the future with a high degree of accuracy. Just like drunk people, stocks need to go wild before they crash, recover from a hangover, and get back to normal. These are trading opportunities.

I should note that day traders can also make the same comparison, but I'm talking more about swing trading. You might profit over the course of a few days, weeks, or months by identifying a drunken stock. These stocks are very predictable, just like a drunken person.

Now, you might be wondering how you can identify a drunken stock. Here are a few tips:

  1. Look for high trading volume. This can be a sign that a stock is experiencing wild swings in price.
  2. Check the news. If there's a lot of hype surrounding a particular stock, it might be a drunken stock.
  3. Use technical analysis. Look at a stock's chart and try to identify trends that might indicate drunken behavior.
  4. Watch for unusual price movements. If a stock is suddenly surging or plummeting in price, it might be a drunken stock.
  5. Monitor social media. Sometimes, social media buzz can cause a stock to behave erratically.

In conclusion, the stock market can be a drunken idiot, but that doesn't mean you can't profit from its stupidity. Just like with a drunken person, there are signs to look for when a stock is behaving erratically. By identifying drunken stocks, you can make profitable trades with a high degree of accuracy. So, keep an eye out

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