I know I bang on about not having favourite stocks, that it’s important to treat the market equally because a good trade can come from anywhere, but man Tesla has been bringing home the bacon in the Walsh household over the last year or so. Wednesday provided a true banger.
Here’s the chart. Spot the thing that annoyed me:
Yeah, this was a late one. My entry was around midday, an hour by which I’ve normally packed away the laptop and called time. But when the price started making some interesting moves after 11ish, I felt I should stick around to see what happened.
Being a sucker for round numbers, I was rather pleased with myself getting my orders in at 480 and 490, giving an even more pleasing round $10,000 profit (minus a few bucks for commissions of course).
The exit incidentally, came about on a reversal of momo. There were a few hairy moments on the way up, but the thing kept putting more and more profit in the bag which made it easier to hang in there until it was very clearly taking a breather and it was suitable to get out.
There was a bit more of a move in the afternoon, and $500 seemed like a real possibility. Had I been around then I would have been tempted to jump on board again, but there are limits to how long I will spend in front of a trading screen. Besides, theres’s no need to be greedy.
I should add that yes, this is an expensive stock. But remember that you could cut the position size down ten times, making TSLA the equivalent of a $48 stock, and still walk away with a $1,000 from this half-hour trade. One of the many beauties of the stock market is how scalable it is.