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It’s easy to be your own worst enemy by behaving like a trader when your intent is to be an investor
[THREAD]
[THREAD]
1/x
Despite showing the most impressive return in my portfolio (at over 100%)
my mismanagement of my position in The Trade Desk $TTD
has cost me USD 26,000
Despite showing the most impressive return in my portfolio (at over 100%)
my mismanagement of my position in The Trade Desk $TTD
has cost me USD 26,000
2/x
In April 2018, I bought 160 shares of The Trade Desk
for my LONG TERM portfolio at an average price of $53.39
$8,540 total
In April 2018, I bought 160 shares of The Trade Desk
for my LONG TERM portfolio at an average price of $53.39
$8,540 total
3/x
I had done my due diligence and loved:
The market opportunity in an important emerging market
The impressive growth metrics and history of beat/raises
It’s sustainable competitive advantage as the leading independent DSP
I had done my due diligence and loved:
The market opportunity in an important emerging market
The impressive growth metrics and history of beat/raises
It’s sustainable competitive advantage as the leading independent DSP
4/x
I also really liked
The quality of the management
(Seriously, Jeff Green and team are excellent)
The valuation of the company relative to its growth metrics
......
$TTD reported a blowout ER on May 11 2018, less than a month later
The stock jumped 40% in a day!
I also really liked
The quality of the management
(Seriously, Jeff Green and team are excellent)
The valuation of the company relative to its growth metrics
......
$TTD reported a blowout ER on May 11 2018, less than a month later
The stock jumped 40% in a day!
4/x
I thought that the ER was excellent
and was thrilled that I had returned 40% to my initial investment
within a month of my purchase
My trading instincts told me to “lock in my gains"
I sold all of my shares for $74 on 11 May 2018 through my phone app
Total $11,840
I thought that the ER was excellent
and was thrilled that I had returned 40% to my initial investment
within a month of my purchase
My trading instincts told me to “lock in my gains"
I sold all of my shares for $74 on 11 May 2018 through my phone app
Total $11,840
5/x
and then watched in dismay
as the stock continued a post earnings drift upwards in price
18 May $TTD price $85.63
18 June $TTD price $92.92
I thought that the next ER, the company might sell off
and I’d get my chance to get back in and correct my error
and then watched in dismay
as the stock continued a post earnings drift upwards in price
18 May $TTD price $85.63
18 June $TTD price $92.92
I thought that the next ER, the company might sell off
and I’d get my chance to get back in and correct my error
6/x
9 Aug 2018 $TTD had another blowout ER and
jumped another 35% IN A DAY
18 August $TTD price $125.61
A month later I decided I had to get back in
I swallowed my pride and bought 70 $TTD shares back
(less than half my original position)
at $140
for $9,800 on 24 Sep '18
9 Aug 2018 $TTD had another blowout ER and
jumped another 35% IN A DAY
18 August $TTD price $125.61
A month later I decided I had to get back in
I swallowed my pride and bought 70 $TTD shares back
(less than half my original position)
at $140
for $9,800 on 24 Sep '18
7/x
$TTD fell to $108 on Dec 24 2018
I held on, reminding myself it was all about the LT view
but it hurt, as I was now anchored to my new purchase price of $140
and the stock had declined almost 25% from there
(I wd have been still up 100% from my original price of <$54)
$TTD fell to $108 on Dec 24 2018
I held on, reminding myself it was all about the LT view
but it hurt, as I was now anchored to my new purchase price of $140
and the stock had declined almost 25% from there
(I wd have been still up 100% from my original price of <$54)
8/x
The stock price eventually recovered
And is now at > 100% over my re-entry price.
If I had just held to my original position in $TTD and behaved like an INVESTOR not a TRADER
my shares would be worth over $46,500, rather than $20,000
Money I left on the table
The stock price eventually recovered
And is now at > 100% over my re-entry price.
If I had just held to my original position in $TTD and behaved like an INVESTOR not a TRADER
my shares would be worth over $46,500, rather than $20,000
Money I left on the table
9/x
This is why the adage
"Time in the market > timing the market" exists.
In my opinion...
The most reliable way for ME to achieve life changing gains in the stock market
is through adopting the long term view on
market beating stocks like $TTD
This is why the adage
"Time in the market > timing the market" exists.
In my opinion...
The most reliable way for ME to achieve life changing gains in the stock market
is through adopting the long term view on
market beating stocks like $TTD
10/x
it is reasonable to have a core position
which is bought at an attractive price and is HELD unless it hits clearly defined SELL CRITERIA
as well as a shorter term “trading position”
Selling your entire position in a company you continue to believe in is a DUMB move
/fin
it is reasonable to have a core position
which is bought at an attractive price and is HELD unless it hits clearly defined SELL CRITERIA
as well as a shorter term “trading position”
Selling your entire position in a company you continue to believe in is a DUMB move
/fin
P.S
* Buy quality business when the risk/reward is attractive
* Review your investing thesis regularly
* Hold long term if the business performs and your thesis is intact
* Ignore short term noise
* Be willing to accept huge gains!
INVEST
https://raymondjames.uk.com/jeff-sauts-weekly-investment-strategy-do-you-have-the-mental-fortitude-to-accept-huge-gains/
* Buy quality business when the risk/reward is attractive
* Review your investing thesis regularly
* Hold long term if the business performs and your thesis is intact
* Ignore short term noise
* Be willing to accept huge gains!
INVEST
https://raymondjames.uk.com/jeff-sauts-weekly-investment-strategy-do-you-have-the-mental-fortitude-to-accept-huge-gains/
PART 2 - IT GETS WORSE
It’s easy to be your own worst enemy by behaving like a trader
when your intent is to be an investor
https://twitter.com/adventuresinfi/status/1226857103463153664?s=20
It’s easy to be your own worst enemy by behaving like a trader
when your intent is to be an investor
https://twitter.com/adventuresinfi/status/1226857103463153664?s=20
