QUOTE(cybermaster98 @ Jan 13 2020, 10:13 PM)
I dont think so. Its not about going wrong. Its about the correct
entry point. Buying a stock at peak vs buying after a 20% dip is huge because not all of us will hold a stock for 5-10 years to even out the hikes and dips.
All these stocks are long overdue for a correction. No stock keeps shooting up. There comes a point when sellers will overcome buyers and send stock price down.
TESLA is classic example of an unsustainable rise. The graph is clear. Anything that displays a near vertical rise is bound to correct at some point. Its about when not if.
I look at 5 main criteria when selecting stocks:
1) Extension of current price vs 3 year average
2) Technical chart analysis
3) Financial health of company
4) News
5) Insider trading, buying/selling trends
In some stocks, there isn't a correct entry point. I have held Apple stocks since buying it at USD32.xx in 2010. Year on year closing, it keeps rising except for 1 year where year end close was slightly lower than the previous.
https://www.macrotrends.net/stocks/charts/A...k-price-historyYou have mentioned you are in for the long haul. Apple has been one of them. 10 years ago, even at USD32, my heart was pounding like mad when I bought 1000 units of Apple shares. And that at a conversion rate of 3.4x to every dollar. You have no idea on the temptation for me to sell every year. Even now, I am so very tempted, especially when conversion rate now is better at 4.1x. And now, Apple stands at USD320. Dare anyone buy for fear of dropping?
In reference to entry point, that only concerns short term gains. For long term, if you read their book value, one can be assured any dip will be momentary. Some you wait for them to drop, but they just keep rising. That is our loss because we dare not take the risk. I sold my ADOBE shares for a handsome profit just only 2 months ago. But look at the price now.
You can't win them all right?
I bought Facebook after they went public. And the stocks spiraled downwards to USD19+. I had a colleague who played the local stock market laughing at me. He's older than me by 16 years, so you could understand why he doesn't see how FB can be bigger. I sold it at USD189. And now?
Anyhow, I'm just sharing what I bought, kept and sold. There has been stocks where I have lost. But current holdings more than made up for the loss. Right or wrong is very much dependent how one interprets the market and economy, as well as understanding their risk appetite.