Here’s how I’m trading Tesla ($TSLA) – July 2, 2021

by DAN TSLA 
I want to go over Tesla ( NASDAQ: TSLA ) here in this Free Chart Video. I have drawn a box here that is just around the current prices. This would be the box on Tesla ( NASDAQ: TSLA ) that I would say, okay, this is normal price action. Since June 24th, which is my late brother Mike’s birthday, Happy Birthday Mike, since June 24th, over the last 6-days, this is where the stock has traded.

As long as this is in this box here, the box is too narrow for me to do anything, it’s like 5 percent. So why do I want to fart around with trading Tesla ( NASDAQ: TSLA ) in this box? It just doesn’t make sense to me, and so instead what I am suggesting you do is, rather than mess around with that, maybe just set an alert on your trading software, an alert at, why not, 699.00? That gives you the heads-up, it tells you when the stock is close to breaking out.

That’s what I will do, that is just what I have just done now. And here’s what I am going to hear when the stock breaks out, “breakout alert”. Just like that, she’s got a sexy voice, she always makes me money, and so that is what you want to set up.

If the stock, on the other hand, falls below, we’ll say, 666.00, which is always a number, rarely anyone’s favorite, then that’s a time when you are saying, you know what? I thought the stock was going up but instead, it’s going down. It is outside of it’s normal price range so I think I will sell. Now, if you sell that doesn’t mean you think it’s going to 600.00 or 550.00, it just means that it’s out of the normal price range. So then maybe you will wait and see if it pulls back further, then you can buy it.

This all starts and ends with this, what’s the normal trading range of a stock? If it’s in the normal trading range then don’t do anything with it. If you are long the stock and you are making money and it’s in the normal trading range, don’t do anything with it. If you are not long on a stock and you would like to be but it’s in the normal trading range, don’t do anything with it. Make sense? I thought so.

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