Bought at High Price - Buy, Hold or Sell?
Did you buy your stocks at high price last year and saw your portfolio tanked this year? Here are 3 IFs scenarios which you can consider whether to Buy, Hold or Sell your stocks:
1st IF - BUY scenario
If the huge drop in stock price is due to macro factors, it's not a major concern. Look at Tesla, I’m actually excited about the drop as I cannot believe that I can still pick up more stocks at 700-800s range
2nd IF - HOLD scenario
If the company you invested in is affected by short term poor outlook or factors (e.g. missed earnings, poor estimates etc), you should do more research and dive deeper. If there is sign of the company turning things around, consider holding your position, let the stock price finds its bottom, or wait for sign of reversal
Example: Meta Platforms’ fundamentals have changed, so investors who bought their shares previously should not be biased or blinded just because their money is in it. PS: I still see potential in them in the long run
Another example, some companies are still growing and expanding i.e. Sea Limited, Snowflake and Crowdstrike. So be patient if you have done your homework and you trust their trajectory.
3rd IF - SELL scenario
If the company you’re vested in has multiple red flags, or worse still, a meme stock, you should consider cutting your losses.
Alibaba - too many issues surrounding them now. Best to avoid in 2022
Grab - in very saturated fields - jack of all trades, master of none. I will completely avoid this stock
AMC - Meme stock
General Motors - too slow in the EV game. Was already losing market share before the rise of EV
If you have time to spare, hope you can support my video below![]()
1st IF - BUY scenario
If the huge drop in stock price is due to macro factors, it's not a major concern. Look at Tesla, I’m actually excited about the drop as I cannot believe that I can still pick up more stocks at 700-800s range
2nd IF - HOLD scenario
If the company you invested in is affected by short term poor outlook or factors (e.g. missed earnings, poor estimates etc), you should do more research and dive deeper. If there is sign of the company turning things around, consider holding your position, let the stock price finds its bottom, or wait for sign of reversal
Example: Meta Platforms’ fundamentals have changed, so investors who bought their shares previously should not be biased or blinded just because their money is in it. PS: I still see potential in them in the long run
Another example, some companies are still growing and expanding i.e. Sea Limited, Snowflake and Crowdstrike. So be patient if you have done your homework and you trust their trajectory.
3rd IF - SELL scenario
If the company you’re vested in has multiple red flags, or worse still, a meme stock, you should consider cutting your losses.
Alibaba - too many issues surrounding them now. Best to avoid in 2022
Grab - in very saturated fields - jack of all trades, master of none. I will completely avoid this stock
AMC - Meme stock
General Motors - too slow in the EV game. Was already losing market share before the rise of EV
If you have time to spare, hope you can support my video below
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Successful investing is about managing risk, not avoiding it. DYODD
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