I too got out before earnings, and I'm not really sure where you get the idea that he doesn't know what he's doing.
I got out because I was up 20% (my target when I initiated the position) and my trailing stop was hit around the time the NYT story came out. I had set the trailing stop prior to earnings because their earnings typically lead to sell-offs because they aren't profitable (yet) and they were going to come up short of their initial estimates for cars delivered 2012 (even though it was revised down, people would still hold it against them). It had had a nice run in the weeks prior, so a correction seemed reasonably plausible anyway. It's just how the market goes, and I figured (correctly) that even if my stop got hit, it meant I would have an opportunity later to get back in at a lower price.
I believe in Tesla, but I also realize that there are going to be dips along the way that I can capitalize on. I think they'll turn a profit this quarter, and if they keep on track, their earnings reports won't be as volatile (at least in the negative direction) and I won't sell beforehand.
I guess it's just a matter of personal preference then. The difference between long term and short term capital gains tax makes what you describe here not worth the effort to me.
I got out because I was up 20% (my target when I initiated the position) and my trailing stop was hit around the time the NYT story came out. I had set the trailing stop prior to earnings because their earnings typically lead to sell-offs because they aren't profitable (yet) and they were going to come up short of their initial estimates for cars delivered 2012 (even though it was revised down, people would still hold it against them). It had had a nice run in the weeks prior, so a correction seemed reasonably plausible anyway. It's just how the market goes, and I figured (correctly) that even if my stop got hit, it meant I would have an opportunity later to get back in at a lower price.
I believe in Tesla, but I also realize that there are going to be dips along the way that I can capitalize on. I think they'll turn a profit this quarter, and if they keep on track, their earnings reports won't be as volatile (at least in the negative direction) and I won't sell beforehand.