Trades

Trade Findings and Adjustments 02-23-2023

Trade Findings and Adjustments 02-23-23

Why do some stocks that had great earnings not continue up?

  • Those stocks already had a good run over the last quarter
  • Looking ahead, it’s hard to justify buying into future catalysts that aren’t there for the market.
  • Profit taking on a good short term bullish quarter

 

What IS the next catalyst?

  • The next interest rate hike being 0%

So what if stocks keep falling down again?!

  • Enjoy another opportunity to buy more shares again
  • Protection has been on since earnings!

Price vs Value

  • Stocks run on emotion in the short term and value in the long term
  • Price is short term, value is long term
  • Changes in stock price isn’t always logical or based on fundamentals
  • Value is ALL about fundamentals
  • Value: how well a company delivers profit, income, growth to share holders
  • Look at stocks as COMPANIES
  • When there’s a sale, you buy more
  • You know when companies shares are on sale when you understand the value.
  • “A bubble is when there is no sustainable relationship between the value and the price of a company.” – Warren Buffet Accounting book

Stocks vs Gold

  • Companies GENERATE income, profit and growth.
  • GOLD generates what? How do you profit from gold?
  • You sell it at a higher (hopefully) price than you bought it.

AAPL vs PTON

  • AAPL has shown for decades that they can deliver value to share holders.
  • PTON basically was showing for the first time that they could sell some products
  • How has AAPL delivered value to shareholders over time?
    • Innovate with new products (iphone, ipod)
    • In doing so, they created new markets and revolutionized markets for audio players and phones
    • Growth into new markets of other countries. Global growth
    • Share buybacks

 

Related posts

Investor, Trader or Gambler – Which are you?

admin

The “Knee Jerk” Reaction in Trading

admin

How to know when your “head” is screwing up your trades!!!

admin

Covered call or protective put for protection?

admin

I want to catch the big run up in our stock market!!!

admin

Does your money manager protect your stocks (GOOG, AAPL or ISRG) in volatility???

admin

Leave a Comment

eighteen + three =