DKNG
📉 Despite initial optimism with a perfect breakout and strong fundamentals, DraftKings faced significant selling pressure due to market uncertainty.
📊 The presenter sold DraftKings shares, incurring a 5% loss to avoid a potential 25% loss, highlighting a disciplined risk management approach.
🔮 The decision underscores the importance of adapting to market conditions and prioritizing capital preservation over potential gains in volatile periods.
@VisionariosBolsa:
“DraftKings, a company I love, that I commented on in a weekly report, that broke out of 10, this breakout was perfect, a big green candle, a lot of volume, perfect results, all of this indicates, this pattern, those fundamentals, that catalyst of the business results, that candle with a lot of price, that candle with a lot of volume, indicate a trend start. Does that mean that 100% there is a trend start? No. Statistically, it is a candle that indicates a trend start, but hey, tomorrow the market suddenly starts to distribute, there starts to be a lot of uncertainty, and the one with real money, which is the one that generates a fall in the market, is on the supply side. Well, hey, you sell. I mean, there is no other option. And in this case, in DraftKings, no matter how much I loved it, and no matter how much I was earning a 7 or 8% return just after entering, it was a value in which I lost 5%, but more than acceptable. If I hadn’t sold DraftKings, today I’m losing 25%, and that is not acceptable, to have values where you lose 25%, because that’s where you really lose money in the stock market. What’s the point of earning 30 if tomorrow you lose 25 in another? None. But it is worth earning 30 while in another you lose 5 and you save yourself big uncertainties. So, it’s very important to follow that in a long-term portfolio.”
Watch the exact part of the YouTube video where the stock is discussed below:
View the video on YouTube.
Read more articles analyzing DraftKings (DKNG) at the provided link. DKNG stock.
