TSLA Entry

I entered my first contract back since the 49% last week. I waited a long time for a good set up this morning. Initially, I didn't know if there was going to be a reversal.

I waited until midday for an entry, I wasn't necessarily monitoring the charts, but I was checking from time to time. I will admit that this one trade is important to me, I've done back-testing and re-applying the same method I tried in the past that worked.

Things that change:

• Observing a two days window for confirmation on entry
• Setting a stop loss order of 25% as it is my tolerance

While today there was dip in the morning hours, we can see that it recovered and closed above the last two trading days. This is a great signal, to me it points out to the continuation of the trend. In addition to this, the RSI is in impeccable health, which means that there is plenty of room for it to rise.

While I can't run my volume analysis currently I was able to calculated it between April 24 and April 27 (Today)

As shown in the table above, we can see that the trading volume increased only slightly, but it is still relatively close to Friday. However, we start to see that price increase similar to how we saw from April 10-13

I did feel a bit hesitant at first to surf this wave, but ultimately I decided to trust my analysis. So far it's paid off today, and I feel comfortable knowing I have my stop loss.

Contract Details:

• Strike price: $392.5
• Contract price: $2.23
• Expiration date: May 4
• Current value of contract: $3.85
• Trailing stop loss: $3.50

Initially my stop loss was $1.76 as the value increased to $4.50 at some point this afternoon, I made the adjustment to my stop loss and moved it to $3.50 this is called the trailing stop loss. Typically after setting a trailing stop loss I feel better as I recover the initial investment.

As I've mentioned in the past, I don't plant on holding these contracts for too long. I give the runs 5-7 days max, and given that this is the third day, we should be approaching high prices in the next day or two – assuming my analysis is sound. While I may not write about it here, I will consider looking at another trade for tomorrow after exiting TSLA if I'm happy with the profit.

Today felt good. It was mentally challenging to actually go in, I did feel hesitation, but I reminded myself "I'm trusting my method and analysis". Like Kobe Bryant once said, "If I'm nervous, it means I'm not prepared" and I definitely studied over the weekend, plus covered myself with the stop loss!

Let's see what tomorrow's tides await us.