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“Stocks only go up, $TSLA to the moon” — Elon Musk (probably)

December 3rd, 2020 No comments
A graph of $TSLA (Tesla Inc.) stock price going up.

A graph of $TSLA (Tesla Inc.) stock price going up.

I hope that you haven’t put all your life savings on $TSLA after seeing that juicy green graph. Hopefully, you won’t open the Robinhood app on your phone before reading this article. Even if you are one of the teenagers contributing to Robinhood’s 4.3 million daily average trades, I suggest you read this post before you go make another trade from your (or worse, your mom’s) life savings.

Here is a simple game for you. From what you can observe in the graph above, where do you think Tesla stock will go next. Would you buy some stocks? What about if you already had some Tesla stock. Would you hold, buy more, or sell? There is a lot of information missing from the graph, however, this type of graph remains the most important visual information that everyone sees first when. If you are a reader of this blog, you can probably guess that our primate brain isn’t as rational as we would like it to be!

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