I hear the pain. I apologize in advance for the length of this
As a true TESLA believer, having owned 9 Teslas, I too followed TSLA from $408, all the way down to $234, before I was wise enough to STOP THE BLEEDING. I think it has something to do with those preaching the "TIME IN THE MARKET, NOT TIMING THE MARKET" BS. Ok, time in the market is essential, but not on the way to absurdity. A successful investor has to balance that edict with rational thinking, and not fall on the sword. Just like the investors who say, "It's ALL about the technicals and charts, or those who say it's ALLL about the news. Hey, it's like nature/nurture. Neither is in full control. It's a delicate balance. A dance. Both the news and the technicals are variables, which impact a stock to varying degrees at different times. It's important to treat them as such. You can run full bore on either and lose your ass. Unfortunately, for years I had all of my eggs in the TSLA basket and that was nice when it was skyrocketing, but $105 a share is not my cup of tea.
EXAMPLE: When I woke up and realized my emotions were playing a way too heavy weight in me coveting my TSLA shares, I painfully sold them all off at $234 (eating the gains tax), and I avoided bleeding out to the bottom. I invested in SGML and other stocks which were rising. I use a formula where I keep 40% of my portfolio in a relatively sure thing (JEPQ ETF with a 16.1% per annum plus a 12.1% annual dividend - paid monthly, not bad 28% in this market). I keep another 40% in what I call the FAB FOUR or NVDA, META, GOOG, and AAPL (these vary from time to time) and I keep the remaining 20% in stocks I play with on a daily or weekly basis. For those who are old enough to remember the Olds Cutlass, I call this my 4-4-2 (40-40-20)strategy. It gives me a solid base JEPQ at 25+%, a growing crowd in the FAB FOUR and it leaves 20% for me to play with on day and short-time trades. I find that this strategy meets all of my emotional and financial needs.
The need to have some solid stability (JEPQ); the need to make money out of great market gainers (FAB FOUR) and the need to stimulate my excitement with short-term trades on a daily or weekly basis.
I realize this is not for everyone, (there are those who want to invest and walk away, checking back in a year or so), but it works for me.
I have been playing around with TSLL, the stock that operates at 1.5X TSLA shares, but with a volatile market, I find it a bit too risky, producing too much anxiety. Yes, it's fun to go UP at 1.5% of TSLA, but it requires a lot of due diligence and can catch you off guard, as it plunges at 1.5% as well. I don't enjoy being glued to my computer or phone all day.
With TSLA's good fortune, I have ironically stepped back into TSLA at $234, the same level at which I stepped out. While I was away, I was able to generate quite a chunk of change in other stocks. Now it's time to check back in and take the TSLA ride up.
After reading all of these painful stories, please don't get hung up on the woulda, shoulda, coulda, if only loop. "Shoulda checked out at $350. If only I saw this coming?" It's mental masturbation and it doesn't get you anywhere. My account never went up $1 from my grieving of the losses. I am learning. Aren't we all? Don't be so hard on yourself. Look at how much you DID make and celebrate the WINS! Time better spent.
So, I guess the moral of the story is this. Don't cling to a stock too long for emotional reasons. Sure, I don't own EXXON or tobacco stocks, but like many of you, I hung on way too long. When a stock loses 20% of its value in a relatively short time, it's time to get out, and take your marbles elsewhere to a place where there is money to be made. As Cramer says, "There is always a bull stock somewhere!" Keep up with the news and follow the charts, giving appropriate weight to each. Oh, and don't forget the "WTF factor". When stocks just go somewhere and you can't even imagine why. Remember, you can't identify ALL of the variables.
I am back in and fortunately, the timing couldn't be better. As Ray Jay says, "I'm ready for TSLA to the MOON, as the long term is very bright!"
I find Ray Jay a fairly reliable source for daily info on TSLA and the major market changes.
Happy and Prosperous Trading.
www.tdameritrade.com
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