Game Plan on $FSLY: Tomorrow and Friday are obviously important days. I want to see how the stock acts around long-term support. The story fundamentally has changed as the company has guided rev. downward due to TikTok loss of income.
WON says in his book and talks about watching for changes to stories. I have a pretty concentrated position in this at 27.6% in my account and an 11% position in the managed accounts. So does this suck? Yes, but thankfully great cost basis helped with the cushioning the blow.
As a result, it was basically engrained in me to never sell a stock because it seems too high-priced but to never argue with the market/tape. So, tomorrow, if the position goes against my support levels, I will reduce or blow it out all together.
At the peak, I had a 58% gain on this stock which is now down to 6% given this drop. But this is an important lesson about why fighting for the best cost possible is CRITICAL if position trading along with proper position sizing.
So, there it all is. No emotion on this. Purely rules. I think this is probably my 20th gap down I have had to go through since I started trading. Yes they suck but remember over time you just become so dead inside and immune to these type of moves and the impact to the P&L.
One last thing on this, another lesson I learned awhile back is that your risk is always to the 50sma. So if you track my trades, you know that I like to initiate there or even below that in the slower moving averages. Thankfully I did, and it saved my ass.
I did the math incorrectly on this weighting of my total accounts. This is a 27.6% weighting of my primary account (most capitalized) but of all my accounts, this is an 18.43% position. Just wanted to clarify this. Managed accounts are still 11%.
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