Tesla TSLA has topped
- Thread starter Master Pu
- Start date
Down 33% since Jan 5th.
Lol... how about context? And relative to whom?
It wasn't a great stock last year, until the last 2 weeks of the year which made up for the year and some. We're less than 2 months into 2022 and already you're dismissing returns? Bit premature I'd think. I'll sell when it hits 1600 or better.
That's just me. I'm in the game to make money. If the stock isn't doing that I'll stand aside.
My experience is that I don't know what the stock will do tomorrow. If I'm in cash I won't lose any money. Every big loss I've experienced has started with a small loss.
I can name you a bunch that I've ridden up, gotten out when they turned that have never recovered. I hope you get a chance to sell at 1600 but how long are you willing tie up your money if it doesn't? At what point do you throw in the towel if it keeps trending down.
I think Tesla the company has a significant margin to grow in all its endeavors. That, I believe, will translate in the stock price which hit over 1200 earlier this year. This market adjustment is temporary although it probably hasn't hit bottom yet and may take a couple of years to recover and reach new highs. I'm making money over 850 so I have no reason to worry about this investment.
I'm more concerned about my crypto investments in light of Kraken CEO Jesse Powell's demagoguery article on bitcoinnews.com
What will it take to change your belief? If it continues to drop at what point do you start to worry?
Ask yourself, what is the downside?
I think cutting losses has to happen quickly, with stop losses. I'm not sure what should trigger these, last price or purchase price, because of the volatility of the stocks I trade and my circumstances (trading premarket to about 11 am and no closing my trades every day).
The hardest moments in trading are buying and selling (
) as each action creates its own set of new decisions: hold, sell, buy. For some, that decision is every few minutes while for others, investors, it may only happens once each. Everyone's level of tolerance is different but it's worth noting that historically investing beats out trading. What point do you start to worry? That's tied to returns optimization and time. I buy X@100 and it drops to 90, is that a point to worry? Right now it is, but over the course of the day, or week, month or year...? If you set a stop loss at 5%, you've only lost 5, but now you have to decide when to get back in. You need more of a macro view -whatever one uses to help make a decision- of the stock to gauge if that 90 is a point to worry or not. Will it drop to 80 or shoot to 110 and, more importantly, will you be able to time your trades to the market? We know the mantra about that!
Back to TSLA, yes I'm confident the stock price will turn around, pass my 850 buy and hit new highs at some point this year, that's 1200+. And no, I don't believe the stock price will drop much lower than 750. That's an investment viewpoint.