A couple of very nice trades to start the week. First up was DISH, which was just screaming out to be shorted.
It was only decent to oblige, and fifteen minutes later when things calmed down and momentum shifted, it was time to get out. $1,030 profit on that one. It wasn’t the most profitable trade of the day in pure profit terms, but it was the most profitable by another measure — more on that in a moment. The accolade of most profitable trade of the day in dollars gained went to Tesla (again).
This was right at the end of the morning so I nearly missed it. But with all that volatility around the important $200 price point, a trade was always going to be on the cards.
As I’ve mentioned, Tesla is a stock I’m learning the nuances of. Which is why I got out without hesitating at the point I did. That made for $1,110 in about six minutes or so (not that the timing matters).
Tesla continues then, to offer hefty rewards to the bold. It’s a high-priced stock, but we can always adjust our position size to something suitable to the price tag. Even cutting the size of this trade by ten would have yielded an easy hundred bucks for a few minutes in the trade. And of course, margin is there to help leverage these moves.
However, if we look at the profit gained for every dollar risked in the market, the DISH trade blew Tesla out of the water. For the same capital that was put on the line to trade 1,000 Tesla shares, it would have been possible to trade 6,000 Dish shares. That’s theoretical as the slippage on such size would have been something to take into account. Still, even if we assumed five times the size, that makes the Dish trade potentially worth more than five grand.
One of the great things about trading stocks is that ability to size up and down according to budget and risk. It’s easy to start small with tiny risk and work up to much larger sums as an account and experience grow. It means stocks are accessible to traders of any level of experience.