So, who else took a short position on tesla today? What's going on team, it's ricky with tech, but solutions? It's definitely not something that i do very very often but tesla. On the four hour time frame, we actually began shorting tesla during our learn plan. Profit live trading session this morning and one of the things that i really liked about my short position is. I really only began to add more to my position when tesla aggressively began to pull on back and by aggressively tesla still only pulled back four percent.

It's a blue chip stock. It's not one! That's going to move a crazy dollar amount within a very short period of time, so i had a lot of fun with it. I wanted to share. You know what led to my success today, uh what i did to manage and mitigate risk and where i'm at as of right now right so at one point today i had over 770 shares.

I had a little bit over half a million dollars, betting against tesla. So, for those that are not familiar with what that means is normally when you go long on a stock or when you buy a stock uh. Your hope right is for it to go up right. You make money as it increases in value.

A short position is a little bit different, so uh, if you guys follow me on instagram one of the things that i talked about is i had an active short position and i added more to that short position, meaning that i was making money as it was Selling off so you first sell and then you buy to cover it sounds a little bit confusing, but once you understand the concept it becomes a lot easier. One of the things that you have to take into consideration is theoretically. There is no cap at how high a stock can go, so you need to make sure that, if you're about to take a short position, your risk management has to be a1, which is one of the main reasons that i don't necessarily always like talking about it. Because it comes at a greater form of risk, especially for beginners, so make sure you take that into consideration, and especially with a stock that has been so bullish like tesla.

So what would have influenced me today to take a short position on tesla? Well, you guys can see that tesla has been consolidating right below 700 a share. It was identifying a resistance level right. You guys could see that it really struggled to ever break above 700 and normally not always, but normally when it begins to consolidate there. It's validating a resistance level and we tend to see pullbacks, that's what i was preparing for so once it broke below the ema on the four hour ten time frame for tesla, you could see that on the five minute chart you know it's very easy to see.

Then that tesla began to aggressively sell off. You could even see it on the one day one minute chart where tesla began to make these lower lows lower highs. It tried to break back above 665, which is a previous support level. So if you guys go back to the four hour time frame, the last time that it pulled on back right, the last time that it hit almost highs of 700, it quickly pulled on back and it hit highs of.

You know hit lows of 665 667 around that general area and then it found the support level. So i was very careful, and this is what we talked about in the live trading session, where, on the one minute time frame, you can see that it was almost beginning to consolidate and find a support level. But what i talked about is hey. You know if we begin to make higher highs.

I'm gon na have to you, know, cover and cover my short completely meaning i'm gon na have to like lock in profits. As again. I really took most of my short position up here, so i would still be able to lock in profits, but i want to make sure that i don't ride it all the way back up and giving back everything that i made right. But if we break below 660, if you guys go back to the learn plan, profit live training session this morning.

What i talked about is, i can easily see tesla testing the 650 support level and you know it began to make these lower highs. Lower lows. I thought it was a recipe for success. I began to add more to my short, add more to my short and then it broke below 660, and this is where you know some of you guys might be like.

Oh man, like half a million in tesla and it dropped. You know at one point three and a half percent. Today i probably made a decent dollar amount uh. One of the things that i tend to do, especially when i have a larger dollar amount in place.

Right - and this is what why i want to share - share it with you guys right. My trades today were in no way perfect right as it began to go in my favor and as tesla began, to sell off reminder the more that tesla sells off the more money i make because i'm shorting it. I had half a million dollars in tesla, so i was already up a decent dollar amount and as it broke below 660, my goal was to sell at 650, but a goal is something to work towards, not something that you have that has to play out. According to plan, so what i began to do and i wanted to share the screenshots with you guys i wanted to share my sell orders.

I began to aggressively, sell or cover my short position on tesla. I was not afraid to lock in profits um, and i want to share two things with you right. First off no one goes broke by locking in profits right uh. At the end of the day, yeah a lot of people like to allow their runners to run, and i do agree with that approach.

But sometimes the second thing is. I make more rational decisions, more informed decisions when i don't have so much money on the line and being completely honest, having half a million in tesla shorting it when tesla was previously bullish. You know that is a risky trade and i need to take that into consideration that currently, on the one day, one minute chart as a day trade. The short position makes sense, but i don't want to be caught on a reversal and although i want to sell at 650, i don't want to hope that it hits that price point and then i hold and then it never does and then ends up fully recovering.

Do you get what i mean, so what i wanted to do is, as it was going. According to plan i began to buy, to cover buy, to cover, which means pretty much just locking in my profits and reducing my position size on that short position. So as we got closer and closer and closer, i got to the point where i covered some of my shorts at 6 52 and it's not a perfect trade of hit lows of 651 and again i was intending to lock in overall profits at 650, but i Did my part in getting in when it made sense right up here when i got that confirmation on the four hour time frame and as it sold off, i stepped on the gas pedal? I added more to my position. Why? Because the direction is in my favor, if i'm making money - and i see that it's bleeding - i make money as it bleeds right.

So i want to add more to that fuel right. I want to add more fuel to that fire. That's a better analogy: uh and then once we got consolidation potential support level, i had to reduce it a little bit there right and then, as it broke below the 660 i was like hey. I think that it can hit lows of 650, i'm gon na.

Add more to my short, but then i quickly began to cover, as it began, to make sense that you know hey at 650, it's already pulled back nearly three to four percent. On the day i made a decent dollar amount, it's probably not as great as you guys would think it would be, especially with the half a million dollars. My main focus today was yes, i stepped on the gas pedal meaning. I took a heavy position when tesla was aggressively selling off, but i didn't hesitate to lock in profit.

I didn't allow the idea of trying to make the most money overwhelm my trade decisions, and that's always what i'm here to encourage. You just make sure that the decisions that you make today are the best for your future self, and i think, that's always you know the the most ideal situation or position that we can ever put ourselves in uh today could have gone completely south for me right. It could have ended up uh, reversing or fully reversing at the end of the day, even if it did play out that way. I did my part in selling when it was in my favor.

So if i sold the majority of my position, then, and then ends up reversing think about this. By having a lighter position, it would be much easier for me to manage my risk cut losses locked in profits. If i want to decide to buy back in, then i can make that decision a lot easier, because i have less money on the line, and this is a simple question for all of you guys. How many times are you put in a difficult position where you have to make the decision? Do i lock in profits? Do i cut losses? Do i reduce my position size? But it's almost a cloudy question because you have so much money on the line that it's overwhelming, because you have so much emotion attached to this decision.

I feel like when i have less money on the line. I make more rational and more informed decisions and that's all it was, as we went sub 660 and working towards 650. I wanted to make the most well and informed decisions as i could. I knew that it didn't have to go according to plan, so i wanted to do my part in slowly locking in profits buying to cover and if it continues to sell off, then i still have again a little bit of money in you know my short position That i can ride tesla as it continues to bleed letting you guys know.

I do not plan to hold my short position on tesla tesla has been very bullish, as overall tech has been very, very bullish, which is why my intention was to day trade. This short position and not swing should it. You have to understand the difference when the opportunity like this presents itself, so i'm super excited to follow up just wanted to explain to you guys on why i decided to take my short position. You know what i saw as a confirmation on the four hour time frame and then how i approached it with both my position, size and, of course, not being afraid to lock in profits to make rational and informed decisions.

So again, it's not a perfect trade, but it's something that still led to a successful short trade. So i hope that i earned your thumbs up. Uh, please consider subscribing and just letting you guys know if you're an absolute beginner, we do run one of the largest free facebook groups in the world and that's that first link in the description. Also, a lot of you guys have been commenting on the different tank tops and apparel that i've been wearing all of this, as in my mouse pad and all the different stuff that we show.

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Like always, let's make sure that we end the year on a green now, take it as a team.