This content details a trader's experience with Tesla stock, emphasizing the critical importance of accepting losses and adapting trading strategies, particularly by quickly flipping positions after a stop-out, to navigate market volatility and achieve profitability.
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So I did two trades on Tesla. One trade
on the short side and one trade onto the
long side. And the key here was that I
quickly covered my short position and
flipped my position to the long. And if
I wouldn't have done that, if I wouldn't
have got a stopped out, it would have
been a very very big loss on the short trade.
So Tesla on a daily chart uh you know
just putting everything on perspective,
let me remove all the levels uh that we
have here. Tesla was near, you know,
near the 52- week high yesterday. Popped
up. Uh it's not alltime high. Alltime
high is at 480, which goes back to 2024.
Uh but uh we did break the 52- week high
at around 473. Today was you know a day
that I looked at it and see potentially
if you can get a you know break up or
break down. But as you see it made a new
high of around 480 and obviously alltime
high is at 488.
um at the open um open really weak so
really sold off for the first uh three
uh minutes and I thought that oh that
could be a good short because we also
had the market atlas looking at the
market atlas that potentially can you
know go towards uh 460 465 and you know
going down so they did a really nice one
minute open range breakdown I didn't
take that trade would have been a really
good short if you want to go short here
put a stop loss here but I didn't take
that trade went down to this level. It
this bounced back a little bit and I
said, "Okay, I'm going to short it here
if you want to break the 466." And the
market after was showing some orders at
466. I went short and then suddenly
really squeezed back up uh with some
really good volume. I decided to add a
little bit more on it on the short in
case it shows weakness and wants go
lower again. Remember in that time was
minus 1% in the day. So I say, "Okay,
it's weak. Market is kind of weak. Let
me add a little bit more on that." So,
this is not averaging up. It's actually,
you know, adding to my position. But as
soon as the squeeze with volume went
through the VWAP, I said, "Okay, I'm
going to get a stopped out on it." And I
quickly got a stopped out. And then
since the volume was really good and
this candlestick turned out to be super
squeezy candlestick, I decided to uh
flip my position and go long on that.
So, not only I covered my short, but I
went long on this for the break of high
of the day. and market atlas after you
went through the VWAP completely
switched to uh bullish and then you know
I added more I added more we did break
the high of the day one time here came
back up to the VWAP my you know my
average was you know somewhere around
470 I still had the belief that it could
possibly go higher you know added more
back again the market atlas was really
showing uh going up and as you see here
went up uh red to green it did drop at
one point and it would really worried me
and uh that was exactly my average
around here 478. That was my original
stop loss. I was thinking of getting
out. I was so close to get a stopped
out, but that turned out to be a file
fail drop and then quickly bounced back.
If I would have got a stopped out here,
I would have probably got back in there
long here because that was a really
quick squeeze out of the VWAP. So, and
this is very important because sometimes
you really uh you know do this failed
fake breakout breakdowns and then
quickly come back up. So, that was the
moment that I would have probably got
back in there. And then we did a red to
green and really nice move up. Market at
was very clear on that. And then I
actually decided to continue adding to
that position to break the 482 which was
the 52- week high of yesterday which
would be the 52 week high. And we did go
all the way up to 482. I think the high
of the day was 4826. I got out some at
482. It did bounce back and I did a 920
trade on it. I kind of knew that it
might not really work. So I came to 920
moving average. I went long and then I
got to stop the the break even uh which
it was kind of at the the VWAP and that
kind of lost hope on it that it's going
to go anywhere. So that's as simple as
uh you know you can get you know but
this is very important that you know the
getting a stopped out is the most
important thing that people have to
learn. If I was short here and I
wouldn't get a stop down and
continuously adding to my position here
I would have blown up my account. So you
a lot of people are telling me what's
the difference between adding and you
know um you know averaging up is when
I'm averaging up I have this really big
stop loss in my mind that is the VWAP.
If it crosses the VWAP you have no
business staying short in there at least
not based on my trade book and my
strategies and that's that's probably
this squeeze is probably coming from a
lot of people that they need to cover
their shorts and that's why it's
suddenly you know squeezes really fast.
you get out and flip your position. If
you really think that uh you know it's
just turn out to be a good trade on the
long side. Uh just flip your position or
if you you know sometimes you get a
stopped out here you can always come
back and you see even if I would have
come back here still I would have
getting a really good move on this. So
don't be afraid of getting a stopped
out. That's a big uh one of the big
problem that uh we have and on a two a
five-minute chart is uh I looked at the
five-minute chart actually it did become
when I took the trade it did was
becoming almost a bullish engulfing and
this bullish engulfing was one of my
favorite strategies you know and I
explained that in my book as well. So
for those of you who are still reading
books in the AI time this is a really
good uh book that uh to learn about
these strategies. So, and you see it did
really work out very nicely. And more
than anything else, I want to talk about
something guys about getting stopped
out. Yesterday, somebody emailed me and
he said that uh one of my friends is
continuous constantly buying this funded
account and he doesn't know how to
trade. Uh can you do something about it?
And then we checked the email and I saw
that there is one person that actually
has bought six funded account and blew
them up. So I asked Mike to email him
and say, "Hey dude, guys, don't don't
don't don't don't buy the fun account.
You don't have a strategy. You just keep
losing money on that." And he emailed me
back. I can later share the email uh
without name in the newsletter. And he
said, "Andrew, my problem is I I cannot
get a stop out." [snorts] So what we
recommended to him is that first of all,
don't waste your money like this. Uh
practice on a simulator and practice on
accepting the loss. It's very important
to accept the loss otherwise you just
keep you know burning your cash like in
the market or in the funded account or
any challenge or anything like that is
accepting the loss is very important I
know it's painful I know not it's not in
our human nature but it saves your life
it saves it protects your life and uh
it's very important to accept the loss
as painful as it can be but you always
have the chance to get back and that's
the very important lesson that you
always have the chance to to get back
into the trades and it is going to
happen. If you want to become a trader,
you have to accept that uh market has
the it's the nature of the market. You
cannot be 100% correct. The Connor, one
of our fun account traders that actually
made over $10,000 and I paid him uh two
days ago, he had an accuracy of only
30%. 70% of his trades were loss, but
because his winners were big, he was
profitable after 3 months. Uh and of
course sometimes he gets lucky with the
one or two good trades and it really
helps in the uh you know pushing the
profit up and that's what you really
want and we did pre uh you know publish
a paper on that that with 75% loss and
25% accuracy you can still significantly
beat the market if you let the winners
uh just run for you. So accept the loss
and uh keep your trading very uh simple
and um you don't need to make many
trades. You know for me uh you know you
look at my chart there's a lot of dots
but it's actually two trades. You know
partials and ads are part of that trade
management of one single trade. So if I
want to show you guys what's happening
here um
um so if I want to show you what's
happening here. So that's one trade that
I got stopped out and then I flipped my
position and these are all one trade.
Obviously these ads worked and one ad
didn't work and I don't blame myself. I
don't cry that oh why this ad didn't
work. It's just the nature of the market
that sometimes it doesn't work for you.
And your job is to find those patterns
and recognize those patterns and trade
those patterns uh nicely. for my main
trade book, the opening range breakout
strategy. I have a step-by-step crash
course that you can watch and learn for
free. Comment the word ORB and I will
send you a link with three different
trading strategy crash courses from
three different head traders at the
Bearbull Traders community. And don't
forget to give this video a free like if
you appreciate transparency and
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