{"id":7544,"date":"2020-08-19T14:02:48","date_gmt":"2020-08-19T18:02:48","guid":{"rendered":"https:\/\/morpheustrading.com\/blog\/?p=7544"},"modified":"2022-04-06T15:04:56","modified_gmt":"2022-04-06T19:04:56","slug":"tsla-trade-review","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/tsla-trade-review\/","title":{"rendered":"$TSLA Trade Review: How to Scale Out of Winning Trades for Maximum Profits"},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"270\" height=\"186\" src=\"https:\/\/new.morpheustrading.com\/blog\/wp-content\/uploads\/2020\/08\/download.jpeg\" alt=\"\" class=\"wp-image-7574\" title=\"\"><\/figure><\/div>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">TABLE OF CONTENTS<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/morpheustrading.com\/blog\/tsla-trade-review\/#Scaling_out_of_a_winning_stock_trade_can_lead_to_greater_profits_while_minimizing_risk_Heres_an_insightful_walk-through_of_how_we_bought_and_sold_Tesla_stock_for_bigger_gains_with_multiple_exit_points\" >Scaling out of a winning stock trade can lead to greater profits, while minimizing risk. Here&#8217;s an insightful walk-through of how we bought and sold Tesla stock for bigger gains with multiple exit points.<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/morpheustrading.com\/blog\/tsla-trade-review\/#Initial_stock_pick_criteria\" >Initial stock pick criteria<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/morpheustrading.com\/blog\/tsla-trade-review\/#Relative_strength_identifies_leadership\" >Relative strength identifies leadership<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/morpheustrading.com\/blog\/tsla-trade-review\/#Technical_analysis_of_TSLA_buy_entry\" >Technical analysis of $TSLA buy entry<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/morpheustrading.com\/blog\/tsla-trade-review\/#How_we_managed_the_winning_TSLA_trade\" >How we managed the winning $TSLA trade<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/morpheustrading.com\/blog\/tsla-trade-review\/#The_Winning_Formula\" >The Winning Formula<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Scaling_out_of_a_winning_stock_trade_can_lead_to_greater_profits_while_minimizing_risk_Heres_an_insightful_walk-through_of_how_we_bought_and_sold_Tesla_stock_for_bigger_gains_with_multiple_exit_points\"><\/span>Scaling out of a winning stock trade can lead to greater profits, while minimizing risk. Here&#8217;s an insightful walk-through of how we bought and sold Tesla stock for bigger gains with multiple exit points.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Back in May, well before Tesla&#8217;s parabolic moonshot, we <a rel=\"noreferrer noopener\" aria-label=\"posted (opens in a new tab)\" href=\"https:\/\/new.morpheustrading.com\/blog\/tsla-cup-handle-breakout\/\" target=\"_blank\">posted<\/a> that we were buying $TSLA based on the formation of a bullish cup with handle pattern.<\/p>\n\n\n\n<p>We finally closed the trade in our <em>Wagner Daily<\/em> model portfolio a few weeks ago, selling half the position for +25% gain and the remaining half for +87% price gain.  <\/p>\n\n\n\n<p>In this post, we walk through the charts of our exit points to show how you can use the same strategy for knowing when to take profits on other winning stock trades with similar patterns.<\/p>\n\n\n\n<p>Continue reading to discover our rule-based stock picking criteria, followed by an insightful recap of the initial $TSLA trade setup and profitable exit points.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Initial_stock_pick_criteria\"><\/span>Initial stock pick criteria<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In a bull market, we focus on trading <em>leading growth stocks that have the potential to generate solid gains of at least 20-40% over a 4-12 week period.<\/em><\/p>\n\n\n\n<p>We also rely on a few moving averages to help find initial stock pick candidates. <\/p>\n\n\n\n<p>Specifically, we  look for <em>trending stocks that are above their 50-day moving averages, and where the 50-day MA is above the 200-day MA. <\/em><\/p>\n\n\n\n<p>This basic scan enables us to filter out stocks that are not already in an established uptrend.  <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Relative_strength_identifies_leadership\"><\/span>Relative strength identifies leadership<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>After scanning for initial trade candidates, we next look for top growth stocks that are showing <em>relative strength<\/em> to the broad market.<\/p>\n\n\n\n<p>In a strong market, we want to be in stocks performing better than the benchmark S&amp;P 500 Index&#8211;<em>especially<\/em> when the S&amp;P is just beginning to recover off its low. <\/p>\n\n\n\n<p>Plotting a basic Relative Strength line (not to be confused with the RSI indicator) helps to identify potential leadership in a simple way. <\/p>\n\n\n\n<p>Pure price momentum, such as a large percentage move off a recent low, is also a key factor in analysis of potential stock trade setups in our <a rel=\"noreferrer noopener\" aria-label=\"nightly report (opens in a new tab)\" href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\">swing trading report<\/a>.<\/p>\n\n\n\n<p>Being in a strong uptrend, Tesla ticked all the boxes from our initial scans. <\/p>\n\n\n\n<p>We also liked that $TSLA is an extremely liquid stock capable of large percentage moves. There are not many of these stocks in the market, so it&#8217;s a good idea to monitor such stocks for potential buy entry after finding them.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Technical_analysis_of_TSLA_buy_entry\"><\/span>Technical analysis of $TSLA buy entry<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Below is a daily chart of $TSLA that shows the exact entry points we listed for <em><a rel=\"noreferrer noopener\" aria-label=\"Wagner Daily (opens in a new tab)\" href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\">Wagner Daily<\/a><\/em> subscribers, followed by our detailed commentary on the initial trade setup:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/new.morpheustrading.com\/blog\/wp-content\/uploads\/2020\/07\/200701TSLA1.png\" alt=\"This image has an empty alt attribute; its file name is 200701TSLA1.png\" title=\"\"><\/figure>\n\n\n\n<p>With both buy entries shown above, we placed protective stops beneath the prior two-day lows.<\/p>\n\n\n\n<p>Also, notice the Relative Strength line was setting new highs ahead of Tesla&#8217;s price&#8211;a reliable bullish signal. <\/p>\n\n\n\n<p>Check out <a rel=\"noreferrer noopener\" aria-label=\"Trade Alert: $TSLA Breakout From Cup With Handle (opens in a new tab)\" href=\"https:\/\/new.morpheustrading.com\/blog\/tsla-cup-handle-breakout\/\" target=\"_blank\"><em>Trade Alert: $TSLA Breakout From Cup With Handle<\/em><\/a> to find out more technical reasons for the original buy entry.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_we_managed_the_winning_TSLA_trade\"><\/span>How we managed the winning $TSLA trade <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The chart below details all the exit points (and one add) as we traded around our Tesla position. <\/p>\n\n\n\n<p>Be sure to also read our exact technical rationale for each exit level that follows:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"856\" height=\"746\" src=\"https:\/\/new.morpheustrading.com\/blog\/wp-content\/uploads\/2020\/08\/200815TSLA.png\" alt=\"\" class=\"wp-image-7548\" title=\"\" srcset=\"https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2020\/08\/200815TSLA-110x96.png 110w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2020\/08\/200815TSLA-300x261.png 300w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2020\/08\/200815TSLA-768x669.png 768w\" sizes=\"auto, (max-width: 856px) 100vw, 856px\" \/><\/figure>\n\n\n\n<p>After a strong thrust up in June, we sold half the position and locked in a gain of +20%.  <\/p>\n\n\n\n<p>After a few weeks of tight-ranged chop above the rising 20-day exponential moving average, we bought back the shares we sold after $TSLA broke above its short-term downtrend line.<\/p>\n\n\n\n<p>The added shares worked out right away, with the price exploding +30% higher in just four sessions.  <\/p>\n\n\n\n<p>We then sold our added shares in two parts into strength, securing gains of +34% and +31%. <\/p>\n\n\n\n<p>This left us with the original half position, which was now trading +60% above our first entry point.<\/p>\n\n\n\n<p>We wanted to give the original half position a wide enough stop to run, so we were looking for a close below the 10-day MA as a sell signal.  <\/p>\n\n\n\n<p>$TSLA subsequently gapped up to new highs on July 13, but reversed lower after failing to follow through. This forced us to sell roughly 1\/3 of the remaining position for a massive gain of +116%.   <\/p>\n\n\n\n<p>By the July 13 close, Tesla was about 15% below the day&#8217;s high with a ton of volume. <\/p>\n\n\n\n<p>To protect against potential price exhaustion, we placed a protective stop beneath that day&#8217;s low.<\/p>\n\n\n\n<p>The stop on our remaining shares triggered the next day, knocking us out of our remaining half position with a gain of +78%. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Winning_Formula\"><\/span>The Winning Formula<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Tesla stock has recently become a household word because of its amazing performance in recent months.  <\/p>\n\n\n\n<p>However, our winning growth stock trading strategy once again helped us find this profitable gem well before everyone jumped on the Tesla bandwagon.<\/p>\n\n\n\n<p>By regularly following the simple stock screening criteria detailed above, you will set yourself up to potentially find the next monster stock.<\/p>\n\n\n\n<p>Sign up for <em><a rel=\"noreferrer noopener\" aria-label=\"The Wagner Daily (opens in a new tab)\" href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\"><strong>The Wagner Daily<\/strong><\/a><\/em> now to start receiving detailed entry, stop, and target prices for the best stock trade setups every day (now also includes <em>Swing Trading Classroom).<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Scaling out of a winning stock trade can lead to greater profits, while minimizing risk. Here&#8217;s an insightful walk-through of how we bought and sold Tesla stock for bigger gains with multiple exit points. Back in May, well before Tesla&#8217;s parabolic moonshot, we posted that we were buying $TSLA based on the formation of a [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[3],"tags":[],"class_list":["post-7544","post","type-post","status-publish","format-standard","hentry","category-stock-trading-strategy"],"_links":{"self":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/7544","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/comments?post=7544"}],"version-history":[{"count":13,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/7544\/revisions"}],"predecessor-version":[{"id":7588,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/7544\/revisions\/7588"}],"wp:attachment":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media?parent=7544"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/categories?post=7544"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/tags?post=7544"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}