Often I talk about risk-reward scenarios and how the stock market was finally of a little interest to me.
So I decided to add some Tesla shares to my IRA, which I had mentioned on the Leofinance AMA. Mainly because - not only was the stock market down 20+% the past year, but Tesla was down like 75%. Also, Tesla is still a stock favorite among the masses so its not like it was down on its luck, the company is still growing..
That Tasty Risk-Reward Play
Thus I looked at the risk-reward based on these factors (and price levels on the stock chart) and was like, my potential upside is much more than my potential downside.
AND THAT IS THE MAIN EQUATION IN EVERY INVESTMENT IN ANY ASSET CLASS.
This particular one has worked out for me as it was well in the green even before the pop higher on earnings, but again it is not about the actual result. It is about investing with favorable risk-reward scenarios.
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Good move, although conservative in essence. the stock market's still got some spirit left in it. TSLA seems to be heading through a V-shaped recovery, but I'm gonna need your opinion on this TA.
I think the thing that sets itself apart from cryptocurrency market is the fact that there are so many big time players on the field, any value gained from one company would end up being transferred to another one, if not withdrawn or already in the S&P 500 index. Few people invest in start-ups and public offerings. People there are desperate for a safe haven, little gets trickled down.
The unique setup around the crypto market makes Bitcoin its unanimous, unequivocal top player. Whenever Bitcoin pumps then dumps, altcoins slurp up the trickle-down. Maybe that's the gamble-y nature of the market and its people, but in no way am I gonna go back to that stale ass stock market, unless there is a clear opening for substantial earnings.
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Yeah, I ignored stocks for 2 years and finally added some exposure with things down at levels I liked. Crypto is still my main jam
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You are right on this I have made the same move and bought into Tesla when it was around $109, quite close to its bottom. And now as it raise to $160 it surely put a smile on my face. Solid assets truly perform after hitting bottoms induced by the overall climate and fear of the masses.
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It was just so ridiculously oversold there was bound to atleast be a big bounce. This may have some more legs too it tho
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Nice work. I read the headline on January 3 (not the article) and said to myself - this has to be good news given where the chart is now. Better than that I did the same risk reward thing you did and bought the stock and set up a January credit spread (now in the bank). Covered call premium was tidy and will take me out at $160 - not bad for 7 weeks work.
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Love it when a plan comes together.
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