What To Do With High Flyers [Video + Transcript]

I’ve been getting a ton of calls about these stocks that are just flying.

GameStop was all you heard about for a couple weeks.  Their have been a handful of companies but GameStop was the big one in the news.  I’m getting a lot of questions like…what should I do? Should I let it run?  Should I get out?  Should I get in now? Did we miss it? Is it too late?  When you go into one of those kinds of positions, a high-flying type of stock that could potentially earn a ton, you want to have a goal of what you want to make on these stocks.

For instance, cannabis. Tilray on the 5th of February, was trading at $26 a share. By the 10th it was at $64. So, it went from $26 to $64 in five days. The very next day it’s back to $32. So, a lot of these cannabis stocks are high-flying.  On top of volatile stocks are short squeezes from Reddit that we’re seeing, extreme volatility.

So, I think what we want to do is when you go into one of these positions, you want to have a target in mind. If you’re going to invest in these kinds of companies, you’re shooting for excessive returns. So, if it’s 50% return or 100% return, whatever it is, have that goal in mind and you have to have the discipline to take gains. So, if you invest $10,000 dollars, and you’re up 50%, maybe sell half of it and just be happy with the gain. You’re never going to get hurt by selling and taking a 50% gain. So just keep in mind, these stocks have huge volatility, big ups and big downs, and you need to be careful with that.

Another question I’ve been getting a lot of lately is Bitcoin.  People ask me, “where’s it going to go?” And I honestly don’t know. I don’t think anybody knows because it’s not like a stock where you can analyze the earnings growth or sales growth and things like that. It’s a currency. So, I don’t think anybody really knows where it’s going. I can say this about Bitcoin, Elon Musk is big on it. He’s going to start letting people buy the Tesla cars with it.  It appears that it is going to pick up momentum. I really think it’s very possible that that Bitcoin can continue. It’s just very unpredictable. I can’t look at a balance sheet and say yes or no.

There are ETFs that are coming out more and more with these cryptocurrencies. And you can get involved that way.  If you want to actually own the crypto, you can go to Coinbase.com and buy it there. Coinbase.com is probably the most respected crypto site out there. Buying at 50,000 on Bitcoin, relatively speaking, is high. It was much lower only a couple months ago. So just know that you’re buying it after a good run, and usually what goes up, comes down. So, in the short term there might be an opportunity to catch it lower, but just don’t be afraid to take gains.  So just be careful with that kind of stuff.  We cannot recommend crypto as it is not a registered security.  The message of this post is still the same, take gains when you hit your target price. 

These high-flying things are very, very aggressive, very volatile. If your goal is to make money, you must lock in gains along the way or you risk giving it all back.

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Tony Gutierrez