Let This Be A Lesson To You
I generally try to refrain from making an example out of people who claim to know what they are talking about, but obviously don’t. In trading and investing it is a dead giveaway that someone is an amateur, green behind the ears and of novice skill when you see them boasting about their winners. Even those who don’t trade or invest for a living have likely heard some form of negative spin on Tesla. The cars start on fire, Elon Musk is crazy and losing control of his company, and the fundamentals of the company are a disaster. I would argue even that the latter may even be true. Tesla isn’t a company most of your advisory types are going to recommend be a part of your portfolio. Now for that making an example part:
There are 50 more articles where those came from, all singing the sorrows of a company that is teetering on the brink of collapse. Any time there is that much negative fervor around a stock, you can bet on a short term bounce at minimum. I’ve been chastised on Twitter for recommending taking a position in TSLA several times this year at levels where it made technical sense.
“BUT THE COMPANY NEEDS PROFITS NOT PRODUCTION AND ELON IS LOSING HIS MIND AND CARS ARE ON FIRE AND IT HAS GONE UP SO FAST SO IT WILL FALL DOUBLE AS FAST WHEN IT FINALLY DOES AND PREPARE TO LOSE ALL YOUR MONEY OMMAAAHHHAAA YOU LOSER!”
Omaha is doing just fine thanks, and has made a killing in TSLA stock AND options. All while everyone said this company was headed to $00.00 taking short positions against a momentum stock like a a hater brat who has let his ego run away with his logic because the company had “poor fundamentals.”
Here are your poor fundamentals at work:
Another free lesson, courtesy of OC.