We can learn a lot watching others.
Earlier this evening, Tesla produced their Q4 earnings and had their conference call. In zipping through some of the usual social media outlets, it is very interesting to see the reactions.
What really caught my attention is not what people are saying. The reality is when you have something as divisive as Tesla, bulls are going to pick every good point while bears will hone in on each negative one. That is no surprise.
The eye-opener is how the seemingly long term holders are responding. I fit into this categroy and, quite frankly, I could care less about these numbers. They improved over last quarter, which is no surprise since we knew the delivery number. To nitpick about every line in the earning report doesn't make much sense.
What Kind of Invest Are you?
This is a question we all have to ask ourselves.
If someone is involved with a company like Tesla for the long term, what is there to gripe about? For me, my stock is mostly in a retirement account which cannot be liquidated until the end of this decades (without penalty) at the earliest.
So what is there for me to be upset about?
Personally, I am more focused upon their dog and pony show on March 1st where they will announce the next iteration of their road map. With my timeline, this is likely going to be more impactful.
Whether the numbers were good or bad, they are like Marcus Aurelius, dead. It is gone. They are a thing of the past.
Here is something that is vital to remember.
Cryptocurrency Is Full Of Neurotic People
If we think the stock market is bad, cryptocurrency is 10 times worse. I dont know if it is because of the volatility and the fact that crypto can have massive pullbacks but the emotional ability to handle what takes place seems lacking.
Take Bitcoin for example. There are many who are involved in this, claiming to have long term focus. We see the projections of $100K or $250K. If this is your belief, then what is the worry? Why do people hang on every tick of the tape.
The same holds true throughout the entire industry. It does not matter what the coin or token. If you believe $HIVE is going to $3, then who cares if it goes to 20 cents first. The same for those who see ETH at $12K; perhaps a trip through $1,000 is needed.
My point is to understand what type of investor you are. Going back to Bitcoin, if you believe we will see $1M by 2030, then why fret about a $1,000 move down in 12 hours. In the long run, it means nothing.
Sadly, this is not the case. People hang on price like it is a logical machine that accurately prices and values assets. I can tell you that, after 30 years in watching markets, it never gets anything right. If it did, things would not bounce around the way they do.
For example, was the market right about BTC at $66K? Was it wrong then and right now at $24K? How come it went to $15K? It had to be wrong somewhere. The basic essence of Bitcoin hasn't changed that much in a years.
Obviously, any successful trader will tell you that money is not made by telling the market it is wrong. That is foolishness. However, buying into what takes place is also equally insane.
If one is trading, then use the indicators that you prefer and have at it. That is much different than investing.
For those in the latter camp, it is best to understand what you are about. If you are in something because you believe in the long term potential, then do not fret every drop. Markets go up and they go down. That is the nature of markets.
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