I keep selling small pieces of my position on every major move up (which has been almost every other day in the last few weeks). I'm not doing that for the purpose of having dry powder when the SP goes lower, but to put the cash into safer investments.
TSLA is an amazing investment opportunity, but it is undeniably a risky asset. To me, the goal of investing is to make outsize returns on risky investment, and then convert those returns into safe assets.
Here are two things that couldn't be more obvious: 1) No single investment stays positive forever. 2) It's near impossible to time the top.
Given that, I think the prudent thing to do is not try to time the top, but rather take small pieces off the table as the investment rises.
I've been doing this for 30 years, folks, and there is only one thing I can say for certain: I have never regretted selling part of my winning position even when the SP continues to rise substantially, as long as I still have a significant stake to enjoy the ride. But I have deeply regretted the times when I failed to take some money off the table, and watched my entire winnings evaporate in front of my eyes.
Not advice, but this is what works for me.
Do you think the people buying pizzas with Bitcoin in 2011 regret it?
Anyway, I think rather than looking at your investments through the lens of how they psychologically make you feel, you should look at them mathematically and try to calculate the expected value, then marry it to your risk profile. Personally I am taking a lot more risk on TSLA than I would otherwise because of the extremely high EV I am predicting.
Also I regret profit taking at 330.
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