Trying to Get Over Tesla

[chinesedrum]

Hi everyone,

Happy new year. Would be interesting to know what are your views on Tesla's stock?

On the other hand, as a new novice trader, I would also like to have your advise on how to get over trading grief. I bought 5 shares of Tesla when it did its stock split last year at 454. I was fairly happy until it fell to the 330s region. I held my nerve and immediately sold my holdings once I broke even. From then on, the stock has rolled on until today, and I still can't get over the grief of missing out. Would really appreciate any advice on how I can deal with this, thanks.

[nicolas]

Hi,
About managing emotions when trading, first thing to limit the fear factor is to only trade with money you can afford to lose. Reducing importance is key to reducing the emotional charge and not becoming a magnet that attracts everything you don't want to happen. About fear of missing out, I find in my personal experience that the best cure is to switch globally from a scarcity mindset to an abundance mindset. When I close a position for a nice gain and it jumps 20% the next day, I used to feel like an idiot, now I can laugh about it. I just gave someone a great deal There are trillions of dollars being printed every year. There is plenty of money for everyone and there is plenty for me too. There will be many more opportunities to score easy wins. When you're not a fund manager that has to be fully invested all the time, that's a huge advantage, you can afford to do nothing for a while (even if it's the hardest thing to do, it certainly was for me when I started) and patiently wait for these amazing buying opportunities that present themselves regularly. It does require some work to remove negative filters and to be able to see these corrections as buying opportunities. Good luck in your trading

[Yodean]

Hi everyone,

Happy new year. Would be interesting to know what are your views on Tesla's stock?

On the other hand, as a new novice trader, I would also like to have your advise on how to get over trading grief. I bought 5 shares of Tesla when it did its stock split last year at 454. I was fairly happy until it fell to the 330s region. I held my nerve and immediately sold my holdings once I broke even. From then on, the stock has rolled on until today, and I still can't get over the grief of missing out. Would really appreciate any advice on how I can deal with this, thanks.

Well, it's going to happen again, and again, if you continue to trade the markets. If there's a lesson or two from a perceived "bad trade", learn the lesson(s), and quickly move on. Markets these days move FAST, in a variety of directions, so if you spend too much time thinking about the past, you're gonna be road kill.

It's happened to me countless times over the years, and I expect this will continue. My personal most recent egregious example: I had a large position in bitcoin (at one point, 15% of my net worth), with an average cost base of when bitcoin was around 10k; I ended up selling most of it when BTC was between $18k and $23k, so of course, now I feel kinda horrible (BTC just broke $41k!) and happy (that I took significant profits) at the same time.

It's a strange feeling, feeling terrible and great at the same time, about a trade. Like eating sweet and sour pork?



Not sure I would call it "trading grief." More like, "FOMO actualized," maybe?

Think of it this way . . . imagine how you would feel if you sold your 5 shares of TSLA when TSLA was in the 330s.

[Budge]

Hi everyone,

Happy new year. Would be interesting to know what are your views on Tesla's stock?

On the other hand, as a new novice trader, I would also like to have your advise on how to get over trading grief. I bought 5 shares of Tesla when it did its stock split last year at 454. I was fairly happy until it fell to the 330s region. I held my nerve and immediately sold my holdings once I broke even. From then on, the stock has rolled on until today, and I still can't get over the grief of missing out. Would really appreciate any advice on how I can deal with this, thanks.

You want advice:
Rule 1, listen to Sol and do everything he says
Rule 2, when you're tempted to stray, Read Rule 1!!

Only when you have a thorough grounding in Sol philosophy do you attempt to take steps outside his parameters.

In Sol's world, had he recommended TSLA and you bought at the split you'd have been orgasmic that you had a chance to buy into it at an even lower price.

[SOL]

TSLA Monthly chart




It's putting in a pattern that is dangerously akin to ABMD, we covered this stock several times in 2018 and 2019, it simply refused to correct. People shorted it and got fried. Right now TSLA is trading in the extremly overbought ranges and it will soon move to the insanely overbought ranges. The Risk to Reward ratio is not in favour of the investor and even if it could trade higher, we would not be getting into this play as it would mean violating our core rules and we are not going to do that


TSLA is being grossly overvalued by novice investors that are being driven by greed, it actually generates very little in terms of profits once the subsidies etc are removed. However, that is beside the point, as its not the product you produce that determines if you make a killing its the product the masses buy into and even if its crap, if you can convince the masses otherwise you can make a killing

Having said that every company that has experienced a parabolic move up has also experienced a strong move down. TSLA is not going to be an exception. It will happen though rather than shorting the wiser option would be to wait and let it happen and then if the pattern is strong jump in and buy like a bandit.

When it comes to missing out on profits, etc, there are always going to be plays that you sell a bit early and then kick yourself because you sold too early. Why not try something new? Instead of kicking yourself be happy that you got out with a nice profit and you gave the other chap a chance to banks some profit. And also focus on the fact that the play could have tanked, there are many players that held too long and then held onto that stock and rode it all the way down. Why do you think markets top and then crash.

Once you close a position for a profit, forget the play and enjoy life. People worry about the missed opportunity but when the real opportunity presents itself they run for the hills. Regret is the code word for living in the past and those that live in the past miss the present and the future.

[SOL]

Hi,
About managing emotions when trading, first thing to limit the fear factor is to only trade with money you can afford to lose. Reducing importance is key to reducing the emotional charge and not becoming a magnet that attracts everything you don't want to happen. About fear of missing out, I find in my personal experience that the best cure is to switch globally from a scarcity mindset to an abundance mindset. When I close a position for a nice gain and it jumps 20% the next day, I used to feel like an idiot, now I can laugh about it. I just gave someone a great deal There are trillions of dollars being printed every year. There is plenty of money for everyone and there is plenty for me too. There will be many more opportunities to score easy wins. When you're not a fund manager that has to be fully invested all the time, that's a huge advantage, you can afford to do nothing for a while (even if it's the hardest thing to do, it certainly was for me when I started) and patiently wait for these amazing buying opportunities that present themselves regularly. It does require some work to remove negative filters and to be able to see these corrections as buying opportunities. Good luck in your trading

Great suggestions in general.

[Eric]

I owned two or three (can't remember, don't care) shares of Tesla at a cost basis somewhere in the high $200's pre-split. I sold them for a teeny-tiny profit because the roller-coaster ride was giving me motion sickness...seemingly every day multiple times I would get an alert on my phone...*Ding* TSLA up 5.4% *Ding* TSLA down 7.7% *Ding* TSLA down 4.9% *Ding* TSLA Up 9.1%



Of course now I wish I had just ignored the alerts or found a way to silence them but meh. I didn't find a winning lottery ticket on the ground this week either.

[langdj]

I have a system where I by stocks that have good fundamentals (in my mind) then I swing trade them based on certain technical criteria.

"My" system is designed to get the chunk of the run, but never do I believe I can always hit the exact top or the bottom.


If you follow your own "guard rails" you can define and optimise overtime, always feeling like you are moving forward. Losses are good (within reason) because they are lessons and profits will come even to a monkey throwing darts. Didn't you know? Stonks only go up

[acebach]

Sol, plz recommend the entry price to buy like an bandit, thanks!

TSLA Monthly chart




It's putting in a pattern that is dangerously akin to ABMD, we covered this stock several times in 2018 and 2019, it simply refused to correct. People shorted it and got fried. Right now TSLA is trading in the extremly overbought ranges and it will soon move to the insanely overbought ranges. The Risk to Reward ratio is not in favour of the investor and even if it could trade higher, we would not be getting into this play as it would mean violating our core rules and we are not going to do that


TSLA is being grossly overvalued by novice investors that are being driven by greed, it actually generates very little in terms of profits once the subsidies etc are removed. However, that is beside the point, as its not the product you produce that determines if you make a killing its the product the masses buy into and even if its crap, if you can convince the masses otherwise you can make a killing

Having said that every company that has experienced a parabolic move up has also experienced a strong move down. TSLA is not going to be an exception. It will happen though rather than shorting the wiser option would be to wait and let it happen and then if the pattern is strong jump in and buy like a bandit.

When it comes to missing out on profits, etc, there are always going to be plays that you sell a bit early and then kick yourself because you sold too early. Why not try something new? Instead of kicking yourself be happy that you got out with a nice profit and you gave the other chap a chance to banks some profit. And also focus on the fact that the play could have tanked, there are many players that held too long and then held onto that stock and rode it all the way down. Why do you think markets top and then crash.

Once you close a position for a profit, forget the play and enjoy life. People worry about the missed opportunity but when the real opportunity presents itself they run for the hills. Regret is the code word for living in the past and those that live in the past miss the present and the future.