Mentoring Tips – Why Are You In This Stock?

When investing in assets as risky as stocks the single biggest question I continually ask an investor when they email me is “Why Are You In This Stock?” I have repeated in many articles on my website that stock selection is a key component of successful investing. In many ways it is perhaps the single most important key to consistent winning profits. Whether I agree with another investor’s stock selection is not important. What is important is whether that investor has asked why they are in trading a particular stock.

Every week I get emails from investors wondering about stocks they are holding and how could a strategy be applied to rescue or repair a trade. A recent email from an investor wondering about mentoring him with his trading also contained an example of a losing trade he is holding with TPX Stock. For investors who are unaware, TPX stock is Tempur Sealy International Inc which trades on New York.

Why This Stock? – Tempur Sealy International Stock

Let’s look at this portion of his email to me and then consider some options for TPX Stock.

Investor Question

“I have one stock TPX that I was selling covered calls on and then it took a major hit about a year ago. While I have stilled sold covered calls and some puts on it, I am still very much underwater and would like some help recovering. I have recovered out of a couple other stocks, but my luck/skills with TPX have not been that good. – From Michael”

This is a FullyInformed Members mentoring tips article. It is 2200 words in length and will require 7 pages to print. Members can login directly through this link or Members can sign in here. If not a member here are some of the benefits of becoming a member.
h4>Other Links To Consider