TECHNICAL ANALYSIS, FUNDAMENTAL ANALYSIS AND ... SOCIAL ANALYSIS?

We’ve all heard of fundamental analysis. We use it when we’re trying to figure out whether a company is worth investing in. What do their books look like? Are they profitable? Are revenues increasing? What’s their P/E Ratio? How much debt do they have? Do they pay a dividend? Decreasing revenues, mounting debt, a high multiple when compared to their competitors? Yeah … I’ll pass.

And we know that technical analysis is most commonly used by day and swing traders. Who cares what the fundamentals are when I’m only planning on holding the stock for a few days … or hours? And that’s where people tend to draw the line, right? TA is only for trading. Eh, not so fast. Normally when someone asks, “When is the best time to start investing?” the answer is always, “Right now.”

But if you knew CVS was gonna be running a sale on Doritos in a few days, would you pay full price now? Or would you wait for a sale? You’d wait for the sale. And that’s where TA can come in to help you get the best possible price for your investment. Twenty years from now, you won’t remember what you paid for that investment, you’ll just be glad you made it. But in the moment, if you look at the chart and see that the stock has had a huge run for several weeks, is extremely overbought, and might correct … you’re gonna wait for a sell off to get those shares at a discount.

And that’s sorta it, right? Fundamental analysis for investing. Technical analysis for stock trading. Done. Except not quite because as social media becomes more and more prevalent, there’s a new kind of analysis. Social analysis. People are talking on Reddit, Twitter, and StockTwits. They’re talking about their favorite stocks. And Invezo tracks all of that. Invezo has news, too, making it a great all in one platform. But what I like most about Invezo is that they show me what stocks and cryptos are trending on social media.

I use Invezo every morning as a stock trader. I look for stocks that have lots and lots of mentions across all three platforms. And then I check out the charts. You’re thinking so what? You’re finding stocks that have already had massive runs. It’s too late for me. But it isn’t because you can see if the stocks are overbought … and then you can short them or buy puts and profit off the likely sell off.

A lot of these trendy stocks surge on rumors and then sell off when people step in to take profits OR when the rumors turn out to be false. Or both lol. There are opportunities out there - all you gotta do is look for them.