Paul’s Strategy for TSLA — Spot the BUY Time
It’s a secret every investor should know.
The strategy for picking all-star stocks and knowing when to buy for the biggest gains.
I call it GoingUpness. (You can get your copy of my six-point system here.)
One example I can give you is a Bold Profits favorite — Tesla Inc. (Nasdaq: TSLA).
We identified it as a winner even when naysayers were saying sell. Take March for instance. TSLA was down to $350.
But it didn’t lose its GoingUpness, so we held Strong Hands.
And it’s recently made new highs, crossing the $1,500 mark!
Today, Amber is going to tell you how we time trades.
Take a look at today’s Market Talk for all things Tesla, GoingUpness and our Bold Profits challenge to you:
Welcome to Bold Profits’ Market Talk Monday for the week of August 10, 2020.
Secret for Stock Trading Success
For those who don’t know, GoingUpness is the secret sauce for our stock trading success. It consists of 6 factors that are the keys to know if a stock is going to be a great bet. If a stock meets 4 of these factors, it’s almost guaranteed to make gains.
GoingUpness’ 6 factors are InDemandness, Insiderness, Buyness, ScareAbility, ValueAbility & ManageAbility.
Factor #1: INDEMANDNESS means 2 things. First, it means the stock is trading at or above its 10-day avg. The 10-day moving avg. is just the avg. of the stock’s closing prices over the past 10 trading sessions. Second, it means the stock is trading at least 20% above its 52-week low.
Factor #2: INSIDERNESS. This happens when a company’s management behaves in ways that goes against the flow of news trends.
Factor #3: BUYNESS, means the stock is hard to buy. To have Buyness the difference between the stock’s ask & bid prices should be between 10 and 20 cents or you see sharp up & down moves intraday.
Factor #4: SCARCEABILITY. This is when there’s a limited quantity of the stock. To track ScarceAbility just keep an eye on the company’s quarterly shares outstanding; also pay attention to share buybacks and individual big owners.
Factor #5: VALUEABILITY. ValueAbility can be measured by looking at the company’s sales. If sales are rising, profits expanding, and free cash flow is soaring these are all good signs. OR… The company owns an asset like real estate, cash, gold, etc. and sells at a 20% discount to value of asset.
Factor #6: MANAGEABILITY. This means the company’s primary business is easily managed. A regular person could run it and still do well. Also, the company must have straight talk in its quarterly and yearly earnings reports or news, vs. jargon, used to hide the truth.
And as Paul revealed in our latest team call, the most critical element of GoingUpness is that stocks are priced by people’s perceptions of the future
What really matters with any stock, what drives gains, is someone’s perception that the future is going to be different than whatever the expectations are. They are willing to go pay a higher price.
As Paul notes, Tesla is a great example of this. Just 5 months ago on March 18, Tesla hit a low of $350.51/share. Today it’s trading at $1,452/share. A gain of 302%.
If we go back to March. What were people saying about Tesla? Why is Tesla up 4x from there? They haven’t delivered that many cars in the last so many months. There’s no way.
But, what is driving Tesla’s share price up? Someone’s perception of the future. As Paul goes on to note, there are various managers, whether it be Cathie Wood or other people who have scoped out what they believe is the future of Tesla, which is wiping out existing automakers as there is a shift to EVs. Then there’s Tesla’s robotaxis & autopilot as a separate business. As well as Tesla’s solar & battery business.
There’s also the potential for their neural network software that could be sold separately as a licensed business. Someone has the perception that is going to be way bigger than it is today. The same can be said for 3D Printing. We are making bets that 3D printing stocks are going to be bid up by people who understand the prospects of the future. Paul states “The world is going to be remade as 3D printing becomes the default way of making things. As they come to do that, then they have the various aspects of GoingUpness.
The stock will be in demand. It causes people to build positions in the stock. That moves on to larger positions.”
“As that happens their friend is benefitting … and they ask, ‘What are you buying?” And the Friend Says: such & such 3D stock and the friend gives them a story about it and why. That leads to the next purchase! Now, they are building a position.
That leads to another purchase.”
That’s how stocks go up. That’s the most critical element of GoingUpness. The stock needs to be in demand. It needs to be in demand for it to rise. It’s not earnings. Someone must desire that stock enough to come in day after day, week after week, month after month and bid it higher.
Help Hit 1 Million in 1 Week!
We’re calling on you to help us build our Strong Hands Nation. It’s my mission to help millions more achieve what you’ve had the opportunity to do here.
I want to reach all of those Main Street investors out there that need help making big money in the stock market.
Transformative gains that can change someone’s life.
To get there, I tried something a little unusual.
I made a funny video for my flagship service Profits Unlimited. I think this is a phenomenal way to reach people who probably haven’t heard of us.
So, I’m asking you to take a minute and watch it. If you believe in what we do here at Bold Profits, please share it.
You can see it here, then copy and paste this link to send to your circle of people — email it, text it, share it on your social media:
Together, we’re going to get 1 million views in one week! And our Strong Hands Nation will be stronger than ever.
Thank you for your help!!
Editor, Profits Unlimited