Shares Volume Skyrockets<\/h2>\n
With that argument in mind, please take a look at this chart…<\/p>\n
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This is a chart of the action in MicroCloud Hologram (HOLO), a China-based holographic technology company.<\/p>\n
The stock started this week trading at $1.80 per share. Yesterday, it opened at $40. That’s a 1,900% gain.<\/p>\n
Just as impressive is the volume – which is typically less than 200,000 shares per day – rocketed to nearly 200 million shares traded on Wednesday.<\/p>\n
What was the news that caused the spike? Did the company discover a cure for cancer? Did it create a time-traveling machine? Surely, there must have been some breakthrough announcement that caused this move.<\/p>\n
FOMO Is a Powerful Motivator<\/h2>\n
Here is the only headline for HOLO this week…<\/p>\n
“MicroCloud Hologram Plans to Join the Communications Industry Association”<\/strong><\/p>\n That must be one heck of an association if merely planning to join it creates a 1900% gain in a stock.<\/p>\n Of course, that headline has nothing to do with the rise in HOLO shares. <\/p>\n This was a microcap stock. At $1.80 per share, and with less than one million shares outstanding, the entire company was valued at less than $2 million on Monday.<\/p>\n A little bit of buying pressure can push these types of stocks a long way. All it takes is a posting, or two or three, in a financial chat room (or two or three). Then momentum kicks in. And then FOMO takes over.<\/p>\n FOMO (fear of missing out) is a powerful motivator. As much as people might fear losing money, they are far more afraid of not making money if everybody else is.<\/p>\n <\/p>\n
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