GREY:XEBEQ - Post by User
Comment by
tamaracktopon Dec 29, 2020 8:50pm
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Post# 32194511
RE:Haha
RE:HahaGreenlane is going to be very volatile, because its daily trading is dominated by retail traders such as yourself. It has done extremely well lately, unquestionably, and may continue to do very well, but it's not going straight up without downdrafts, some of which may be hard to stomach.
Very basically, when we talk about a stock's beta, we're referring to that paticular stock's risk in relation to the market. A beta of 2, for example, would describe a stock that moves 2 times as much as the market return. A stock with a beta of 1 would carry no more risk than the overall market.
It's actually a little more complicated than that, but that's the gist of it.
Day to day trading in Greenlane will be far more volatile than Xebec, in both directions. You've seen an example of just that over the last 2 weeks. Corrections will likely be severe when they happen, and they can happen fast.
Today's trading isn't cause for concern, virtually every stock in this space sold off sharply. You will have to prepare yourself for that eventuality. Today may have signaled a long overdue correction, as Greenlane experienced a reversal to the downside, although it wasn't a big one, with the stock only off 1%. That's nothing compared to the bigger names.
You have to expect the volatility that is inevitable. It will happen.
If it's causing you worry, you really should consider buying some Xebec to diversify. Greenlane is a Ferrari. Xebec is a turbocharged Toyota.
Good luck to you. You can message me if you like.