"I still hold AMD CROX NVDA and TSLA. But, I have a sense that those will be sold eventually also." Do you mean all the positions, including long term/investment or just the trading positions? Thanks a lot!. Gervasio
Yes! I do mean the entire position. If this correction is going to take me out of my stocks, then so be it. That is why we need to use rules. DOCU is a great example of why we must use rules. I know folks who did not adhere to rules when it sliced its 50sma with volume at $290. Now the stock is trading at $135, and I have people asking me what should they do with their stock now that it is trading at $135. Do you think they wish they abided by the rules at $290? You bet they do!
I started buying CROX at $45 AMD at $40 TSLA at $900 and NVDA at $207... Do I want to sell them? Heck NO! The only good reason to sell those stocks are when they make a climax top or slices the 50sma with volume... These four have done neither and that is why I am still holding them. But, if they violate the rules then I must sell them.
The most recent buys are usually the most vulnerable. I believe TSLA will be the largest market cap company in the world in the near future. But, if I can sell it at $1,100 and buy it back at $800 doesn't it make sense to do that?
We get ourselves into trouble when marrying a stock or thesis and arguing with the markets as the market share always right. I know folks holding ROKU DOCU ZM and PTON hoping they return to their former glory. What can I tell them? You need rules and sell all stocks when they slice their 50sma as bad things may happens when stock are not supported at their 50sma.
I hope this answers your questions!