Play to Avoid Getting Burned

I see in the news this morning that one of the betting slip stocks has missed expectations and is dropping sharply. I have heard several analysts say that the ride is over for Tesla (TSLA) and they are predicting the stock will continue to fall.

I have no idea if they are right but it highlights the dangers of buying stocks that trade so far above the value of the business that they are simply bets in a popularity contest. You are betting that the company will continue to execute flawlessly in the face of exaggerated expectations and that someone will like the stock more than you do at a higher price. You are betting that you are faster and smarter that the 500,000 other people trading the stock on a given day....688 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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