In times of falling stock prices I have been known to act a bit gung-ho as a result I have bought stocks at the wrong time and held on to them too long.
Lat time I watched the stock market fall consistently for about a week I took a stake in one of the most overpriced shares on the market. Tesla is a stock that i have made money on before and so when I watched it fall and fall I decided on pure instinct to buy. A couple of weeks later I sold the share for a loss (okay it was a small one but a loss is a loss in my books). This isn't the first time i have done such a thing but i shall not bore you with the endless list of bad trades now in the back of the William Martin closet. However I made a promise to myself that it would be the last.
I believe in maths, when it comes to the stock market figures speak. Good figures rise bad figures loose and so this week when prices seem to be falling into a never ending pit I was faced with a metaphoric cross roads. To the left was my heart telling me to buy $DDD yet to the right was my brain and maths telling me to take a stake in a company I had been scouting lately. Recently I liquidated 30% of my portfolio after selling $CMG for a 130% return and so was sitting on an uncomfortably large cash pile which i so nearly blew.
Yet at the last moment I remembered my promise to myself. It's not always good to "Move fast and break things" as Mark Zuckerberg would say, especially not when it comes to the stock market because the only thing likely to break is your wallet. Instead I have learned to look into the future and listen to Warren Buffet "Buy good companies, doing good thing, run by good people". Because of this I took a rather low bet on a rather big business doing rather good things. It may not be as exciting but I would sure as hell rather look at another green +ve figure rather then a -ve figure.
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