Trading TSLA?

[PennySnatch]

Is anyone trading TSLA profitably? The damn thing moves almost 10 points a day and sometimes as much as 50. I trade it but I'm only breaking even i.e. the lord givith and I just givith back.

Thanks for any replies or insight.

 

[ironchef]

Read this:

http://www.businessinsider.com/alibaba-stock-price-short-sellers-trading-loss-10-billion-2017-8

The next-most shorted company is Tesla, which has drained $4.5 billion from the accounts of bearish speculators, less than half of the damage left in Alibaba's wake.

And this:

http://www.businessinsider.com/tesla-stock-price-big-money-investors-cutting-holdings-2017-8

You are playing against the sharks and pros. If I were you, unless you were one, try something easier.

 

[Handle123]

I have TSLA as one of the stocks that gets traded on automation, not for those who are new to trading. You should stick to like IBM or Spy to get your experience on risk management and chart patterns. First 90 minutes in stocks/ETFs are usually huge and sharp moves, then "lunch" settles in for thee hours, learn to trade chop and you can do pretty good, you are looking for smaller bars and go with trend, buy/sell retracements. stay with it if you can till it breaks past pivots and get out soon after making little consistent chunks. TSLA, you can get out of half shares and try to get out more if it goes in your favor. For like the first 90 minutes, safer deal is doing credit/debit spreads so risk is limited till you gain your experience.

Yea, BABA looks like another good stock to day trade whether buy/sell, just matter of risk control comes first, then entry signal, if you don't understand risk well, don't trade anything.

 

[Pekelo]

You are playing against the sharks and pros.

I hate when people saying this, because:

1. It indicates that the pros never lose and they know what they are doing all the time.
2. It also indicates that a retail guy can't beat the pros.
3. You never know who is on the other side and for what reason. If you are buying, the person might be selling because he made already enough. That doesn't mean the stock can't go higher or that the seller can not be wrong. He might just needed capital, we just don't know.

Try to look at the market as a wave and go with the flow instead of trying to fight it...

 

[ironchef]

I hate when people saying this, because:

1. It indicates that the pros never lose and they know what they are doing all the time.
2. It also indicates that a retail guy can't beat the pros.
3. You never know who is on the other side and for what reason. If you are buying, the person might be selling because he made already enough. That doesn't mean the stock can't go higher or that the seller can not be wrong. He might just needed capital, we just don't know.

Try to look at the market as a wave and go with the flow instead of trying to fight it...

Thanks. I should be more positive.

I sure hope I will be selling because I make enough already.

 

[ironchef]

You should stick to like IBM or Spy to get your experience on risk management and chart patterns.

IBM?

 

[Handle123]

IBM?

Not as wild.

 

[fhl]

According to Barrons, Morgan Stanley's Adam Jonas is raising the price target on the stock while at the same time recognizing the need to slash his earnings forecast.

Tesla: A Canary in the Wall Street Coal Mine (Barron’s)

 

[comagnum]

Or consider trading from the hard right edge of the chart & holding longer. Pull the trigger and have a rising profit for months. The HFT's may have won the bid-ask spread but beyond that they only competition is with your own psychology.

Recent short - IBM. Gap trade. Looking for 2 subsequent breakaway gaps after the first one & got them - somewhat common. Shaded areas are estimated moves base on the prior down leg range. Many stocks are great for trading but not every day - maybe a few times a year during the breakouts. Why anyone would want to trade in chop is beyond me.

 

[ironchef]

Or consider trading from the hard right edge of the chart & holding longer. Pull the trigger and have a rising profit for months. The HFT's may have won the bid-ask spread but beyond that they only competition is with your own psychology.

Recent short - IBM. Gap trade. Looking for 2 subsequent breakaway gaps after the first one & got them - somewhat common. Shaded areas are estimated moves base on the prior down leg range. Many stocks are great for trading but not every day - maybe a few times a year during the breakouts. Why anyone would want to trade in chop is beyond me.

View attachment 177204

Two questions for you sir:

1. Trading breakouts is easier said than done. When do you enter?

2. Traders/investors that put a hard stop at $140 got picked off?

Thanks.