My January 2021 trading results: STAYIN’ POSITIVE while wondering about the “new normal”
Updated: Mar 5, 2021
New year, new beginning, new goals – practically the same results. Last year I ended up with + 17.65%. In January there has been a slight increase (+ 1.07%), and currently my total result is + 18.72%.
So, I can say that really nothing new compare to last year. Markets continue to behave "illogically", and I continue to trade cautiously.
When I compare my results to rise of cryptocurrencies, Tesla shares and the leading technology companies in general, my result doesn’t look very impressive: yet I’m STAYIN’ POSITIVE :D.
Nevertheless, I am not a type of a person who would express my emotions with “to the moon” 🚀 🚀 🚀 🌙🌙🌙 or any other silly emoji etc. but I guess I’ll make an exception this time. Read on an you’ll see why.
So, let’s look at the stock markets – it seems that the logic has been quite simple so far. With arrival of Covid – let’s invest in technology! Everyone will sit at home and spend time online, right? And if you work remotely - then most likely you will use Zoom for that matter.
An increase of 800% is perfectly normal, right? 🚀 🚀 🚀 The PE ratio (price to earnings) is 300, compared to the industry where the PE ratio is only 21. Everything now looks like a bubble. Tesla also looks "normal" 🚀 🚀 🚀
In 2020 Tesla sold only 500k cars, compare to Toyota which sold 9.5 million, and Volkswagen - 9.3 million 🚀 🚀 🚀 Tesla stock chart very much resembles BTC chart. Distinct parabolic movement. How long will this continue?
Besides, new “normal” is to invest in companies with nearly catastrophic balance sheet, declining sales and a huge drop in the share price – here is the REAL potential to take you money and take it "to the moon" 🚀 🚀 🚀.
Now the main thing is to inform other people about this great opportunity in one of the popular social media forums. Because social trading now is a trend itself. So what that it looks like pump and dump schemes, and it’s ok that even Elon Musk uses such tactic as well by using his huge army of followers across the social media? So what that Musk and Tesla each was fined with USD 20 million? When you have such a huge rise in stocks, you may not even notice that, the rush pumps adrenaline and each day brings new heights for the stock. Earnings from these shares are nearly astronomical. Well, I'm not saying Tesla is a bad company. What I say this is not sustainable.
The only aggressive tool I keep holding is cryptocurrencies. I still haven't sold either ETH (Ethereum) or BTC (bitcoin). But now I have already started to look at the growth of this instrument with some concern. Any growth which interest rate is measured in thousands (!!!!) naturally makes you wonder – what's going on?!?! How much longer is this going to last? Is this the "new normal"? But looking at history – sooner or later everything eventually will calm down and stabilize. Then we can say that this now is our “new normal”.