How To Day Trade Tesla Stock For Beginners ($1,200 Profit) | Summary and Q&A

TL;DR
Learn how to day trade Tesla strategically by watching for changes in direction and adding to your position as it shows signs of an uptrend.
Key Insights
- ❓ The trader emphasizes the importance of considering the overall value of a company when swing trading, rather than solely relying on technical indicators.
- 🤘 Adding to positions as a stock shows signs of an uptrend can increase potential profit, but it is important to carefully manage risk and avoid averaging down.
- ◀️ Finding a niche within the market and becoming well-versed in stocks related to that niche can help in identifying quality stocks.
- ™️ Focusing on quality stocks that make sense within a niche can increase the chances of successful trades.
Transcript
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Questions & Answers
Q: Why did the trader add $100 more to their position during the live stream?
The trader added $100 more to their position because Tesla was selling off and approaching a potential support level, which presented an opportunity to buy at a lower price and potentially make more profit.
Q: Why did the trader choose to swing trade Tesla despite it showing a downward trend on the 180-day chart?
The trader saw value in the overall company of Tesla beyond just the technical indicators. They believed recent news and changes in the market could potentially increase the stock's price in the future, making it a good investment.
Q: What is the trader's approach to day trading Tesla?
The trader's approach is to wait for signs of an uptrend, such as breaking above the EMA line and making higher highs, before adding to their position. They split their investment into two to three positions and carefully consider the risk and potential profit before deciding to add more.
Q: Why does the trader advise against averaging down when a position is losing money?
The trader believes that adding more to a losing position may not necessarily result in a better deal. Instead, they prefer to focus on trading stocks that are showing signs of an uptrend and making them money, rather than trying to find the lowest price point.
Summary & Key Takeaways
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The trader made over $1,200 day trading Tesla and still holds a swing trade position.
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The trader emphasizes the importance of looking at the overall value of the company rather than just technical indicators when deciding to swing trade.
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The trader shares their approach to day trading Tesla, including adding to positions as it shows signs of an uptrend but not averaging down when it is losing money.
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