Members Trade Update: $AMZN

BotTrigger Trade Update: $AMZN is now up $40+ in after hours on earnings hovering around the $955 area. Congrats everyone!

In 2017 alone we were in on AMZN @ $797.58 → then out @ $845.00 → then back in @ $874.01. So we've missed about 30 points of upside so far. We're going to be increasing the stringency in which sell calls gets made on Class A Stocks. Let's distinguish something important here. When was it ever a bad time to own AMZN? Since the post financial crisis era, AMZN has only ever corrected -30% on 2 occasions. And we've seen about four -20% (range) corrections. Each time AMZN recovered and later eclipsed the highs.

The point here is this, AMZN is really one to hold indefinitely. Short of needing immediate cash, AMZN, FB, GOOG, NFLX, AAPL, PCLN are all in a class of their own. We will from here on only be selling half positions in AMZN when there are absurd extremes to the upside on a relative scale. Market volatility & shenanigans will occur but those have always been buying opportunities. We know that sell orders bring AMZN down every quarter down to the 21 day moving average at least once per quarter; the 50 day exponential moving average is visited at least 3x per year. We're going to model & table this all out in another post. The point is, these have all been buying opportunities. Right now the portfolio is uncomfortably underweight AMZN at only 5% allocated to this name. In the coming weeks we will be restructuring the portfolio cleaning up losers and prioritizing higher allocations on winners and the inclusions of more Class A Stocks like AMZN, FB, NFLX. GOOG. A more formal announcement for Members will be sent via email.

Some of the greatest pearls shared by Jesse Livermore:

“Money is made by sitting, not trading.”

“The desire for constant action irrespective of underlying conditions is responsible for many losses in Wall Street even among the professionals, who feel that they must take home some money everyday, as though they were working for regular wages.”

“Buy right, sit tight.”

“Nobody can catch all the fluctuations.”

“There is a time for all things, but I didn’t know it. And that is precisely what beats so many men in Wall Street who are very far from being in the main sucker class. There is the plain fool, who does the wrong thing at all times everywhere, but there is the Wall Street fool, who thinks he must trade all the time. Not many can always have adequate reasons for buying and selling stocks daily – or sufficient knowledge to make his play an intelligent play.”

“It takes time to make money.”

“Don’t give me timing, give me time.”