Here is your trade on $TSLA…again!! – June 9, 2023
This is Dan Fitzpatrick, and I want to look at Tesla ( NASDAQ: TSLA ) today. First of all the stock has had a heck of a run here. I am looking at Tesla ( NASDAQ: TSLA ) and here’s the point.
This is a stock that is really, really hard to buy. And the stocks that are the toughest to buy, meaning you want to get an uptrending stock, but you want to get it on a pullback. So you are pretty sure, in fact, you are guaranteed that you are not buying right at the top because you have waited for the stock to pull back, it kind of gives you a foothold on the stock.
The best stocks don’t let you do that because they keep going up. They kind of reward the FOMO traders who just have to get in. That is a little bit of what we are seeing here. These lines, by the way, are lines that I drew several days ago, or last week, talking about what I think the stock could do.
This, to me, would be kind of a more logical thing, where the stock goes up and then drifts sideways. The stock goes up here and then we see a little doji day there. And then I’m going, “Okay, maybe we will get another drift lower, like this, and then we buy when the stock breaks out.” Well, that actually didn’t happen. The stock just kept going, and going, and going. So again, it’s a stock that is really difficult to buy.
So do you buy it? Well, I can’t say, sure, buy it here at 246.25, but I can’t say not to. Because you look at the weekly chart, and I would say, just on a technical basis here, I would say this stock has actually just broken out from this range here. A sideways range, note how the Bollinger Bands have been squeezing here on the weekly chart. Even though the daily chart has looked pretty volatile, because it has been, on the weekly chart you see that these bands have really, really tightened up and the stock has broken out.
So if you are trading this as a longer-term trade you can still get in this stock here. And then look for, in my mind, a minimum 20 percent move. Again, on the weekly chart, if this is your method of analysis, Dave Ryan helped Bill O’Neil, in fact, he might have been the originator of the CANSLIM method at IBD, he was around William O’Neil a lot. And he said he never saw O’Neil look at a daily chart one time, he never looked at them.
Now, if you are a swing trader you are going to be looking at daily charts a lot. But the point is, if you are more of a longer-term trader, where you want to hold stocks for a long period of time for a bigger gain rather than just flipping through stocks in and out, and in and out, and in and out, hoping that the compounding of those shorter-term trades, hoping that they will outweigh the gain that you could have made if you had just bought and held the stock.
If you are that kind of trader this is not going to work for you, you are going to be in on the daily swing trades. But if you are a longer-term trader you just buy this stock and hold on to it through the ups and downs, consistent with a stock that is in an uptrend. So that is how I and trading Tesla ( NASDAQ: TSLA ). I tend to be a shorter-term trader and maybe you are too.
This is the point that I want you to keep in mind on this, we could always trade better, we could all trade better. And so, if you are finding that you are swinging out of stocks that you wish later that you had just stayed in, then take a fraction of your position and just say, Do you know what, I am holding this thing. If Tesla ( NASDAQ: TSLA ) drops 246 points, then I guess I will sell it for 6 pennies.
The bottom line is, you are saying, I am going to take this small amount of money and hold these shares. Okay, put those aside in a separate account, I have mine labeled 2023 Investment Stocks, and then take the rest and swing it, if that is what you want to do.
But what you want to do, one way or another, is train yourself to hold uptrending stocks, like this, for bigger moves. However you are going to do that, you have to make sure that you are not going to hold them for bigger losses. But you want to find a way to hold these stocks for bigger moves. And that means, necessarily, for a longer period of time.
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