micksonns 95106726
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$Tesla (TSLA.US)$ Sliding but I’m still positive on the future trajectory.
I always believe in walking the talk. My Tesla trade today.
Options Disclaimer: not for everyone especially when you sell options. Risk of Unlimited Losses while profits are limited. Don’t say I didn’t warn you.
"If somebody doesn't believe Tesla's going to solve autonomy, I think they should not be an investor in the company," Musk said on the call. "We will, and we are."
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I always believe in walking the talk. My Tesla trade today.
Options Disclaimer: not for everyone especially when you sell options. Risk of Unlimited Losses while profits are limited. Don’t say I didn’t warn you.
"If somebody doesn't believe Tesla's going to solve autonomy, I think they should not be an investor in the company," Musk said on the call. "We will, and we are."
Total View Lvl 2
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micksonns 95106726
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$ProShares Ultra Bloomberg Natural Gas (BOIL.US)$ Can't break through the support level.
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micksonns 95106726
voted
Stock price fell by 50%, is it cheap?
Since I first started dealing with stocks, the investors around me have been buying stocks with the concept that the lower the stock price falls, the cheaper it gets, saying that a big drop in stock price is actually a big promotion! It's time to sweep goods...
But this does not apply to every stock, and it's even a risky move for most people.
Because the percentage decrease and increase are not directly proportional, a 50% decrease requires a 100% increase to break even. Buying stocks at RM1 that drop to RM 0.5 is only a 50% decrease, but to rise from RM 0.5 to RM 1 requires a 100% increase. If you buy into the wrong stock that keeps dropping in price and continue to purchase, your wealth will keep shrinking.
Take a look at today's $Sea (SE.US)$ The parent company of Shopee, familiar to Malaysians, saw a 28% decline in stock price on performance day today, dropping 89% from its peak. This also means that to reach the highest point from this price level, it would require an increase of about 900%.
Many investors consider a 50% drop as cheap, with a potential further decline of 50%, and a possibility of another 100% decrease — attaching my chart slides as reference, dropping 50% from point A to point B, another 50% from point B to point C, and a 56% drop from point C to point D.
Stock prices can continue to drop 100% from that point even after an 80% decline, not just remaining at 20%...
...
Since I first started dealing with stocks, the investors around me have been buying stocks with the concept that the lower the stock price falls, the cheaper it gets, saying that a big drop in stock price is actually a big promotion! It's time to sweep goods...
But this does not apply to every stock, and it's even a risky move for most people.
Because the percentage decrease and increase are not directly proportional, a 50% decrease requires a 100% increase to break even. Buying stocks at RM1 that drop to RM 0.5 is only a 50% decrease, but to rise from RM 0.5 to RM 1 requires a 100% increase. If you buy into the wrong stock that keeps dropping in price and continue to purchase, your wealth will keep shrinking.
Take a look at today's $Sea (SE.US)$ The parent company of Shopee, familiar to Malaysians, saw a 28% decline in stock price on performance day today, dropping 89% from its peak. This also means that to reach the highest point from this price level, it would require an increase of about 900%.
Many investors consider a 50% drop as cheap, with a potential further decline of 50%, and a possibility of another 100% decrease — attaching my chart slides as reference, dropping 50% from point A to point B, another 50% from point B to point C, and a 56% drop from point C to point D.
Stock prices can continue to drop 100% from that point even after an 80% decline, not just remaining at 20%...
...
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