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Elon Musk’s Big Gamble on Dogecoin

By Andrew Aziz  |  
Andrew's Newsletter  |  
May 10, 2021

As Dogecoin’s price was not able to move toward $1 after Elon Musk’s Saturday Night Live event, Elon once again doubled down on his push for pumping Dogecoin, a currency that he himself has agreed in an interview was initially created as a joke. Nevertheless, he is ambitious. He would like it to become the world’s primary currency! Musk announced his plans to name the next SpaceX shuttle Doge-1 and he is certainly keen to get the prices up.

As I tweeted earlier, it truly is a big gamble. If Musk can mobilize a whole lot of FOMO, he can squeeze Dogecoin to $1, but if he fails, I sense he will lose a significant chunk of his online influence. He used to frequently engage in this type of manipulation – for example, his notorious $420 tweet on Tesla – but the SEC forced him to step down as Chair of Tesla, and now he is everywhere in the world of cryptocurrency.

Musk’s efforts are not to be brushed off easily. He is a smart man, and there’s no particular reason why he would simply be joking around. Celebrity trader Dave Portnoy believes he is pumping and dumping, and perhaps waiting for a big dump, especially given that records reveal that the majority of Doge is being held by just a few big wallets.

I’ve received quite a few personal messages like the one below. They’re almost exclusively from people who are just blindly buying Dogecoin because Elon Musk told them to. I hope it ends well. Ardi and I discussed buying some, but as we studied it more in depth, it really did not fit our risk and investing/trading philosophy.

What do you think? Is it a good idea to buy just because Elon Musk said so?

As for Bear Bull Traders, last week we hosted an awesome meetup with traders in Austin, Texas. Mike joined us from California, Jarad from Louisiana, and John from New Hampshire. We had a good dinner, an excellent chat, as well as an invitation to visit the home of Dr. Jonathan Katz and his lovely wife. It was great seeing many veteran members from what I will call the “old times”, and it was inspiring to learn how their lives have been changed because of their day trading journey.

This week, we are offering several important webinars.

Monday Technology and Onboarding – 8pm ET

As always, new members are encouraged to join our Monday evening class at 8pm with Mike and Carlos.

Tuesday Strategy and TradeBook – 8pm ET

I will be presenting a special webinar this Tuesday called “Come Into My Trading Room”. In this webinar, I will discuss how I set up my trading station at home and also while traveling. In addition, I will share what I am monitoring on each screen that I use, how I narrow down my Stocks in Play, and what I look for in a setup. I will then walk you through my mental and thought process before, during, and after taking a trade, and I will also explain what exactly happened in my biggest daily loss ever (an over 100K loss on my favorite stock, NIO).

Wednesday Psychology – 8pm ET

This week’s Psychology webinar will be with our very own Mike Baehr, who is soon to publish his book, Introduction to Trading Psychology. As you know, regret, frustration, anger, joy, and optimism are just some of the many emotions you as a trader will experience. How you handle these emotions while trading will no doubt determine whether you are satisfied at the end of the trading day or whether you walk away with a thought similar to “If I only had …” In this webinar, Mike will discuss some of the more common emotions traders experience and he’ll show you effective ways to help you successfully handle these emotions when they arise.

Thursday Mentorship – 11am and 8pm ET

We will continue our regular Thursday evening mentorship sessions with Thor at 8pm ET and, as you know, I have added a new mentorship session in the morning for Elite members in our Webinar room at 11am ET, just after my trading day is done. I hope to see as many of you as possible at both sessions.

As ever, you can check out the list of all of our webinars and their times on our Webinar page here. Please feel free to email me at [email protected] if you have any questions (or simply reply to this email).

To your success,

PS: Summer is just around the corner and we would love to have you join us as an Elite member. To that end, we’re happy to offer you a 40% discount on our annual Elite membership. With the discount, it will work out to only $99 per month (billed annually). Use the discount code: MEMORIAL40, or simply click here.