Profit Taking On A Stock You Still Want

When taking profits it is important to consider if you still want to hold the stock because of its overall growth potential or if you want to collect a dividend.  If this is the case then to not miss out on any potential surges after you have taken profits be sure to scale back in by buying small amounts even at the higher price.  Also if the ex-dividend date is approaching and you want to catch the dividend you will want to scale back in as well.  Use a dollar cost averaging strategy to get back in so you don’t miss any potential big upswings.

Note: I took another position into TSLA as it climbed back up today.  It may pull back after earnings this week but I want to be in a position to ride it higher if it doesn't.

Take Profits When You Can

So just took my profits on Tesla today because of several reasons:

• The 20 period moving average crossed the 50 period moving average
• It’s the beginning of May and people usually “sell in May and go away”
• The stock is starting to get overbought on the slow stochastics

I’m going to wait for the pullback and get back in because I know this stock is going to go higher.  As I said before when you invest in Tesla you are investing in more than just a company you are investing in Elon Musk’s vision.  He is a tenacious owner and he has a way of surviving situations that is commendable.  As they say the best indicator of future behavior is past behavior and his ability to build his businesses and grow them amidst a chorus of naysayers bodes well for the future of Tesla.