Trade Management: Should This Investor Sell Tesla After Missing 8-Bagger Return?
Yes
There is nothing more aggravating than investing writers who "bought a stock back in 1980 and are up big today. Therefore, you should buy those said stocks now.
The price paid and the time in the markets matter.
No one has a time machine that takes you back in time to buy stocks at prices of the past.
An investor held Tesla (TSLA) through its peak. TSLA stock topped $400 until Elon sold shares, bluffed a buyout of Twitter, and then bought Twitter.
Twitter is now asking users to pay a subscription - $8 a month in the U.S. - to get a blue checkbox icon. This is infuriating billionaires and millionaires who want such badges for free.
With 800% paper gains down to 487%, what should this investor do? Buy, hold, or sell?
First, run a chart here. Click the tool bar and then chart:
Add MACD to the chart:
In the chart above (activate 2-week trial here), the MACD peaked in August, a bearish chart signal. Now, back to fundamentals. This is the one word the investor needs to consider: