These days everyone talks about Tesla closing 75% of its bitcoin position. Let's evaluate it and see if there is anything that we can learn from it:
1- A Perfect Entry: according to Tesla's earnings call average entry price was $31,620..! Considering 27829 was the lowest price of 2021 and bitcoin traded only 22 days below Tesla's average.
2- Missing opportunity to realize +100% gain in less than 1 year, Twice..!
3- Closing below Entry with 170 million USD loss: Tesla sold $936 million worth of Bitcoin at the price of $28,888!
As you can see to be successful in Trading or Investing you need a perfect entry and exit strategy, but you should not forget that your gains are not yours unless you realize it!
As you can see Tesla had the chance to make a 1.7 Billion USD profit in 2021, but they lost that opportunity and shareholders should pay for Elon's 1.5 Billion USD gamble..!
Education: Minimal requirements for a good effective trading/Investing system: 1- Entry Criteria 2- Exit Criteria: Target, Stop Loss 3- Profit protection Plan: Trailing Stop loss
The last one is very important because you should never let a winning trade turn into a loser one..!
If your trading setup lacks any of the above-mentioned requirements, you will lose money even if you are Elon Musk..!
Why should Elon pay shareholders 1.5B ? He was still really successful at irrationally pumping TSLA for years.
D-Rock_Anomaly
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let's see... I definitely use limits, scalp profits, average down my positions, hedge losing positions, trade after long periods of success/failure, broadly guess tops/bottoms... Among a couple others haha. This guy is CONSERVATIVE lol he won't even smile, but I'm sure over time these habits will probably hurt me. Nice post! I like this.