$Tiger Brokers(TIGR)$ riding the horse for me in 2026 will be about a lot of things. But in this article I will just focus on one concept, misconception.
So I call myself the emotional investor. Does that mean I get emotional about stocks? Quite the contrary. I watch the emotional decisions of others, and act, based on their misconceptions. Here's a few examples...
Capital raises cause shareholder dilution, therefore it's a bad thing. Well it can be if it's because the company is bleeding money and their prospects going forward are poor. But more often than not companies raise new capital to buy new stuff that will ultimately add significant upside to revenue, margins, etc. so while the stock price tends to suffer negatively short term, long term the price goes up, providing they execute. Therefore you are not diluted at all. $Eos Energy Enterprises Inc.(EOSE)$ is a good example. They diluted recently to set up a new production line potentially doubling their production capacity, so also potentially doubling their income. Obviously there's a lot more to it, and execution risk is high because their track record of execution is mixed. So I'm holding for now until I see clear signs that they are executing.
Another common misconception constantly in the media is insiders selling their stock. The fairy story that media spins is insiders sell because the company is about to turn to shit. But this is bullshit usually. In reality the insider's don't sell because they want to, they sell because they have to. It's called taxes people!
I third misconception, well not a misconception. More like deliberate attempts to mislead. So the best example I can give here is $Rocket Lab USA, Inc.(RKLB)$ . Recently it shot up to a record high of $99.58. Now its pulled back to high $60's early $70's. The market commentators elude that this is due to... oh there's lots of mud slinging. So let's address a few Of these fiction vs reality commentaries, as to why the stock price of rocket lab has dropped.
1) its Because the mars sample return program has been dropped by congress. Reality is actually, this is old news. We knew it was dropped before rklb climbed to $99.58. Another reality was that rocket lab was one of eight bidders. Add to that, that a mars telecommunications orbiter is extremely likely to be funded. And rocket will get that. All the signals clearly indicate this. So if you believe you should sell, you are a sheep. This is fake news.
2) next up, oh my a rocket lab engine for the new neutron rocket blew up, that's why the stock has dropped. To paraphrase from sir Peter beck The founder and ceo... it's a rocket program, we need to blow up a few engines to test extremes. It's no biggie. Given that the company can construct a new engine every 11 days, hmmm, I'd have to agree. I mean starship has blown up 12 entire starships to date. Rocket lab has blown up, one arguably two engines. It's not meaningful. If you are selling your rocket stock based on this news... I'd suggest you should not be investing in the stock market. Unless you just buy the s&p 500. Because you have no clue.
3) rocket lab has dropped because they blew up the lower stage tank in final testing. It's going to set them back months to years. reality, my intel tells me the hydrostatic test they did went to 120% when it exploded. Testing is about taking things way beyond expected loads. It is kinda a fail, because I believe rocket lab are perfectionists. 150% is actually the benchmark. Based on past performance though I'd bet they have already analyzed the data and sorted it.
Conclusions here. Know the company you invest in and then you will quickly identify fake news. You will also identify that the selling pressure is just manipulation.
The year of the horse, hmm (I have ridden may horses, so this is a great metaphor). Never ride a horse you do not understand, or you will be bucked off. Also understand the environment you are riding your horse in. riding bare back on the beach, staying on horsies back when she swims in the sea... nothing compares, it's amazing.
But the stock market today is like riding your horse on a freeway. It's not pleasant. To many unknowns, too many variables. So it's critical that you understand the variables and also know the unknown. And know how your horse will react.
Happy trading tigers, I'd love to recieve your comments on this one
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I don't usually blow my own trumpet, but I think this article is worth a read