Apologies that this came so late. I was bogged down by other things happening in my life, and also, to be honest, this income report stung a lot to write, because I thought I’d go against the tide of the bandwagon, and it didn’t turn out well at all.
So, in the first month of the new decade, I took a loss on trading.
So the first half of the month went pretty well, trades in Pinterest, Facebook and Etsy were all going my way.
The Big Short
And then I set my eyes on Tesla. You have to remember that in the last quarter of 2019, Tesla had been on an absolute tear, going from ~$240 in October 2019 to $418 by 31 December. That trend only accelerated into January, and I thought there’s no way Tesla was going to continue this trend.
Boy was I proven wrong.
Anyway, by then I was looking at Tesla and thinking “damn… that’s got to lose steam, like, pretty soon!”
So I tested shorting it a little bit. I did 2 quick short trades (exited within the same trading day) on 10th and 13th January, and felt pretty good about it.
I rationalised to myself that investors and traders will want to start taking some profits out of their incredible quarter, and will be selling and pushing the price back down to maybe the $410 levels, and that a significant correction is due for Tesla, especially with the risky quarterly earnings looming.
Welp, that didn’t happen. In fact, the stock shot past $600 and $700 levels and went straight through $800 for a few days. That. Was. Crazy.
So yeah, I was pretty upset at myself for trying to go against the tide. Hopefully, this gets the trading loss out of the way and pave the way for more green months ahead.
Given the uncertainties of the Covid19 situation, we’re in for choppy waters ahead.