MY TESLA (TSLA) INVESTING STRATEGY (Full Breakdown)
My Investment Strategy
When investing in Tesla stock there are A lot of risks. I think the smartest strategy for this stock is to do dollar cost averaging, what this does is it limits your risk because you aren't putting as much money up front and you are spreading out your monthly payments to get a good average price for your stock. Now if you are long-term believers in Tesla stock then you can do the one lump sum,I just think it's smarter to do dollar cost averaging so you can put money in other investments and continue to invest in Tesla.
Also another tip that you can do when investing in Tesla is anytime the stock Falls more than 6% you can double what you normally would invest to lower your average position down so when this stock recovers you will make double your profits.
Tesla is a very volatile stock so it would be smart to have a base of ETFs or blue chip stocks to act as your defense in your portfolio. Tesla has some high swings in price and if you have ETFs it will limit out those price actions in your portfolio.