📉 How To Short A Stock (Tesla Example)

TL;DR

Ricky provides an update on his trading positions, discussing his losses on AMC and his break-even day on shorting Tesla.

Transcript

hey team just wanted to let you know that all mousepads today on shoptechbuds.com are buy one get 150 percent off for your trading station link is in the description hey what's going on team it's ricky with tackle solutions and today was definitely not a perfect day when it comes down to my series of trades uh it started off really great i was up n... Read More

Key Insights

• ❣️ Ricky took heavy positions on AMC, resulting in losses when the stock pulled back.
• 🤑 He made money shorting Tesla, adding to his position when it got rejected by the SMA line and covering at specific support levels.
• 💁 Ricky observed clear resistance and support levels on Tesla's chart, using them to inform his trading decisions.
• ❓ He acknowledges that AMC is a risky stock and not suitable for everyone.
• ⏰ Ricky emphasizes the importance of being selective in trading and focusing on locking in profits.
• 🥳 While Ricky had a break-even day overall, he acknowledges areas for improvement, such as reducing his position size on AMC quicker.
• 💬 He plans to continue updating viewers on his trading positions and welcomes questions and comments.

Questions & Answers

Q: Why did Ricky experience losses on his AMC position?

Ricky took heavy positions on AMC, but the stock began to pull back, causing him to lose $5,000 on the day.

Q: How did Ricky make money on his Tesla short position?

By shorting Tesla, Ricky profited as the stock sold off. He added to his short position when Tesla got rejected by the SMA line and covered his shorts at specific support levels.

Q: What indicators did Ricky use to determine when to cover his shorts on Tesla?

Ricky looked at previous support levels and observed that Tesla had a strong support range around $677 and $678. He covered his shorts at around $677.67.

Q: Will Ricky re-enter a short position on Tesla?

Ricky is waiting for confirmation and watching for signs of an uptrend. If Tesla breaks below the EMA line and shows indications of an uptrend, he will consider re-entering a short position.

Summary & Key Takeaways

• Ricky started the day with a significant profit of over $28,000 but experienced losses on his AMC position, down $5,000.

• He updates viewers on his Tesla short position, explaining his strategy and how he made $5,000 on the trade.

• Ricky discusses the resistance and support levels he observed on Tesla's chart, as well as his plan to potentially re-enter a short position if certain conditions are met.