Disruptive Innovation Investing in 2021

3 proven strategies for exploiting technology stock volatility

Edward Iftody
Iftody.com

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What’s wrong with having a little protection? — Image by Sarah Richter from Pixabay

Apple, Tesla, Amazon, Nvidia, Netflix, Facebook … All of these disruptive innovation companies have fundamentally changed their industries, swept away the competition, and now dominate their respective business niche. Even in the midst of a pandemic, these companies have not only flourished, but they have also extended their lead over the competition. I firmly continue to believe these same innovation names will continue to deliver superior returns over the long-term.

However, if you are currently a shareholder of disruptive innovation stocks, you’ve probably been shocked by recent price movements — both on the way up and the way down. Like many investors, you might be struggling with the decision of whether or not to remain invested through this correction.

Whether you’re a long-time investor in disruptive innovation stocks or new to these volatile investments, rather than relying on a buy-and-hold strategy, or on a market timing strategy, I’d like to offer you a third option — an option aimed at maximizing returns and minimizing portfolio standard deviation by exploiting large price movements.

In this article;

  • Innovation stocks are volatile because they are hard to price

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Edward Iftody
Iftody.com

Edward Iftody is a Communication Coach, author of Surviving Work, a veteran of the Canadian fin-tech industry and a blockchain enthusiast.