Amazon.com, Inc. (AMZN), Stratasys, Ltd. (SSYS), 3D Systems Corporation (DDD): Trend Spotting: Getting in Early vs. Playing It Safe

I think the point that I’m trying to make is really that when you spot a new trend like that, it’s not necessary that you jump in immediately. I think, as a matter of fact, that I would advise against it for the most part. If you feel like you need to jump into that immediately to be a part of it, make it a very small position. It’s something you buy a few shares of a stock, or a company that you feel like is on the forefront of a new emerging trend, and that keeps you in it. That gets you some skin in the game, and enables you to learn more about it.

As time goes on, if something happens, that loss wouldn’t necessarily be debilitating, and you can always add more to it later as your confidence builds in that trend.

I guess that’s just the point, right? If it was easy, everybody would be doing it.  So really, I think the key is to read, read, and just keep on reading. I’ve never known a good investor that doesn’t read constantly. For me, that’s been the best way to not only learn as an investor, but really to keep on the forefront of things that are changing the market on a day-to-day and a week-to-week and a year-to-year basis.

Rick: That brings you back to the first point there: Enjoy it. Because if you’re going to do all that reading, you’d better enjoy it.

Jason: Exactly, right.

The article Trend Spotting: Getting in Early vs. Playing It Safe originally appeared on Fool.com and is written by Jason Moser.

Jason Moser owns shares of Amazon.com. The Motley Fool recommends 3D Systems, Amazon.com, and Stratasys. The Motley Fool owns shares of 3D Systems, Amazon.com, and Stratasys and has the following options: short January 2014 $36 calls on 3D Systems and short January 2014 $20 puts on 3D Systems. 

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