facebookAdvice for my current portfolio, I'm 21 this year and currently have 32 TSLA shares with a cost price of $287.529. What should I do now in the current market crash? Sell or hold? - Seedly

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28 Dec 2022

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General Investing

Advice for my current portfolio, I'm 21 this year and currently have 32 TSLA shares with a cost price of $287.529. What should I do now in the current market crash? Sell or hold?

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Just an update here. I've just found out information that Tesla (and many EV companies) will not be doing well in the short term (5-7 years) as it will be faced with fundamental headwinds that Biden has just thrown in last year. His Inflation Reduction Act (2022) literally will crush some weak EV companies and will make even strong companies like GM and Ford struggle by forcing US EV companies to source battery components outside China. You may want to hedge your trade by exiting your Tesla trade and betting against it with a pair trade. Pair this with a US-based Graphite/Litihum mining company against a weak EV company like NIO. You will make back everything you lost in your current Tesla investment.

The old buy-high-sell-low strategy.

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I'm going to assume that because you're young and, just like the rest of us, didn't have a great financial education so you just bought tesla because of a gut sense or the popular hype. Well, if you believe in the long-term future of the company, then why not just hold onto it, at least to see if it goes up and maybe you can make a profit? It's only 10k, which may seem like a lot to you now, but probably won't be 25-50 years from now, which is the sort of time horizon you should think about when investing. If you need the cash, or you think you have a much better investing opportunity (that hopefully isn't based on a 9 minute youtube video by a 25 year old) then you may as well sell now, kiss goodbye to that 5k (which, again, won't seem important 50 years from now) and put the remaining money into that investment. Nobody can tell you what to do - nobody cares about your money as much as you do.

I trade NASDAQ futures daily and based on the recent market activity and price-actions, I can see that there could be a temporary rally before final capitulation.

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You are most likelsitting on ~$5.3k or (58%) loss for TSLA. If you can stomach another 20% loss, then it makes sense to hold. If you have some spare cash, you can consider buying 1 deep in the money put contract to hedge off some of the risk your are taking. Buy a deep ITM 3-months put contrac when the NASDAQ rallies (in the near future). The market will be sideways for an extended time or year.

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Do not ever sell naked calls or puts without deep understanding how the risk works. I traded option contracts before so I know what I am talking about.

Be greedy when others are fearful. Plunging? Buy more when low!

Hold...

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