Gonna offer something different than the rest of the comments lecturing you. Here's some words of wisdom~
I don't think you bought out of speculation but rather on herd-mentality. If you bought on speculation then there's no lesson to be learnt. People who held Tesla from $100 back in the early days were also considered speculators. People who are buying in now at a PE of 1000+ are also considered speculators.
"THERE'S NO WRONG IN SPECULATING"
Always remember, Nio was all time high at $20 once, it does not mean there's no chance of it going higher.
If you need the money, you can just cut losses. If you have the holding power, just give it a couple of weeks / months.
It's business model is rather interesting and with the announcement of the new car launch, I believe it is in a better position to rival with Tesla with the upgraded specs.
From what I see, Tesla aims to be a mass-market EV provider. They are looking to launch a more affordable variant in China, however, Nio has positioned themselves as a more luxurious EV company and if you understand the purchasing mentality of the China market, how they are particular about 'face' and thus may go for Nio rather than Tesla (not to mention specifications-wise)
Let be give you some food for thought just like what @billy ko.
I agree with what @billy ko said. There is no wrong behind speculation. Most people are gamblers, they want to seek excitement. Just know that odds are against gamblers. BE WARN!
Questions to ask yourself if you are a speculators :
Are you going to proceed? If yes, how long? Or what price do u want to let go? If go down, how? Cut loss? Prey that it will go higher?
Since you are going long term, I assume you are an investor?
PLEASE ANSWER THESE QUESTION AND PLAN YOUR NEXT Move? No point panicking.
I understand that every one is getting hype about EV. Tesla, nio, xpeng. People forget about reality, about risk. Tesla primary revenue is from automobile and same goes for NIO. They have competitors? Ford, Toyota, Nissan, GM, Audi.... Everyone wants to steal this EV or autonomous vehicle market. Who's the winner? Who knows? U need to manage your risk.
YouTube, financial institutions have their own opinion. You need to create your reasons and evidence. Your investment thesis.
Good news for you: EV mass adoption is just at early stage
Choose if you want to suffer from psychological warfare every day, mins, secs. Or an investor with a piece of mind
I have no specific views about Nio or EV sector in general.
But a general advise is to assess companies based on their market capitlization(mcap) and not its share price.
A quick search tells me that Nio is a ~$100B mcap company. Do you think it has potential to grow into 500B company in next 5-10 years? then its a 5x opportunity for you to invest in. If you believe it can compete with Teslas of the world, then it may be a 1 trillion mcap in the future which is a 10x opportunity.
If you only bought it because the stock is going up, then its a wrong start.
If you bought it because of looking at its price and listening to news and hype, you are 100% speculating and that’s not investing.
You should already understand the business and valuation way before you buy it so you shouldn’t be asking what’s the prospect of Nio only after you buy it..
Let this be a lesson learnt, to do your own due diligence and to do your homework before rushing in and end up being a FOMO
Have to ask yourself why you buy, is it because of your conviction or fomo trade. If you're asking such questions, i'm guessing it's just speculative and blindly follow trade. If no conviction, hold until break even then sell. If you did your homework, then just hold
Hey i also bought NIO when markets opened monday after NIO day, thought prices would dip as people take profit but it didnt . FOMO’ed and got into at 64.45. Today the price is at 56.31.
I am as bullish as i can be for NIO, with the Chinese Government aiming to have 50% of their EV market be Chinese made, the frontrunners are Xpeng and NIO. Government’s gonna heavily subsidise and aid its own Chinese companies to strive and be a superpower in it. It already has one of the largest lithium reserves set to be used for its markets.
NIO will have its dips short term but as how their business model is, i see huge huge potential for the asian market in the near future if they sort out production and batt swap tech. Given the “Made in China” campaign iniciated by the Government, you’d see more support for Chinese companies as compared to Tesla in China.
Dont worry, average down your position. Dont buy high sell low!!
Hope this helps😀
3 more comments
If you are not sure why you bought in, then it is just speculating, not investing. Personally, I'm bullish on NIO in the long run but if you do lose money on this trade, just take it as a lesson learnt to do your own due diligence and not to follow the crowd.