Rate Of ReturnThree Principles of Selling in Waves from Tesla After the 'Breakup' of the Relationship with Matt
"Trading is more often an art of response."
After last night's sharp drop, the overnight trading of $Tesla CB1519$ in the U.S. market has expanded to over 5%, with the stock price returning to $300.
The latest development in the Trump-Musk relationship is: When asked about his disagreement with Musk, Trump said, "It's okay!" Trump's aide is scheduled to call Musk on Friday.
It turns out that after the high-level bundling of Trump and Musk, Tesla has become a stock more suitable for short-term speculation.
Coincidentally, the first batch of double-leveraged inverse ETFs listed in Hong Kong includes $Tesla CB1519$'s $CSOP 2x Long Tesla HK07766$ and $CSOP 2x Short Tesla HK07366$, which can be traded during Asian trading hours, making them excellent trading tools for investors who don't want to stay up late to speculate on Tesla's price movements.
In the previous article, it was mentioned that Cai Ma, due to insufficient confidence in Tesla, canceled the trade of $CSOP 2x Long Tesla HK07766$ at the turning point of the band and instead bought $CSOP 2x Long Hang Seng TECH HK07226$.
It's a bit regrettable, but the previously held $CSOP 2x Long Tesla (07766.HK)$ had already withstood two pullbacks last Friday, with substantial profits, and was cashed out when encountering resistance at short-term highs.
Looking back, the sale was very timely. No one could have predicted that Trump and Musk would split in just a few days, causing the stock price of $Tesla(TSLA.US) to plummet.
This shows that no matter when, sticking to your consistent strategy and principles will always make you more composed.
For example, the three principles for band traders who aim to buy at the starting point:
1. If the trade does not take off on the entry day or the floating profit is insufficient to withstand the next day's gap, then regardless of profit or loss, exit the position at the close of the day (hitting the stop-loss is a passive exit).
2. If the trade takes off shortly after entry, start moving the stop-loss to breakeven, and exit once it hits breakeven in the opposite direction.
3. If the trend has been running favorably for some time and there is substantial profit, cash out when a pullback is likely.
In summary, it can be seen that Cai Ma's cashing out of $CSOP 2x Long Tesla (07766.HK)$ last Friday adhered to the third principle of protecting substantial floating profits.
The first two principles are about protecting capital, teaching us how to achieve what Warren Buffett said: "Rule No. 1: Never lose money. Rule No. 2: Never forget Rule No. 1."
Trading is more often an art of response, which means thinking more about "if...then..." so that when the market falls into your "if-then" scenario, you can respond calmly.
Special Note: This article only shares Cai Ma's trading system philosophy and investment logic and does not constitute any investment advice. If individual stocks are mentioned, they are by no means recommendations. The stock market carries risks, and investments require caution. Please refer to it rationally!
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