What can we learn from Tesla stock price history?

“Study the past, if you would define the future”, said Confucius. Now, let’s see how we can apply this sentence of universal and timeless wisdom to trading Tesla stock.

How to make money trading Tesla

I suppose making money is the ultimate goal here of investing into Tesla.

Here’s how I do it.

It would be a good idea to let me first share my approach to stock trading with you and give you an understanding of my basic stock trading philosophy.

My stock trading philosophy

I am a trend following stock trader.

To me, that means that I only invest in the strongest and most promising stocks with room for more and rapid appreciation in stock price.

I buy stocks that are often already trading at their all-time high stock price or at least relatively close to their all-time high. Because being expensive is a sign of strength.

I simply do not buy weakness.

I let my winners run

Trend following, to me, also means that I let my winners run. I intend to keep a stock for as long as it goes up. Even if that means holding a stock for months or years.

For a good understanding, that means that I don’t trade with profit targets.

At the moment I buy a stock, I have no predefined target price at which I will sell it.

I cut my losses short

Only small losses are acceptable if you want to win in the game of stock trading.

You simply can not recover from big losses.

That’s why I always cut my losses short.

By doing that, any trade has only four possible outcomes.

  1. A small loss
  2. A break-even trade
  3. A small win
  4. A big winner

Not having big losses is the key to the kingdom.

Avoiding big losses opens the pathway to BIG profits.

Stock trading is never a prediction

I have spent several years on learning how to trade stocks successfully.

Years of trying to figure out why I was still losing money.

Years of hard work looking at tens of thousands of stock charts.

Most importantly, when looking back, years of not giving up. “Success will only appear after refusal to quit”, said John McGrath. Isn’t that true in all things in life?

Years too of reading dozens of trading books of world’s greatest traders.

This is what I learned.

Even world’s greatest traders don’t know for sure if a stock will go up or down when at the moment they make their purchase.

They make enormous profits with win ratio’s as low as 50% or less!

Incredible right?

World’s greatest traders sell half of their stocks with a loss.

Stock trading is NEVER a prediction of the future.

Which is actually a good thing.

It means you don’t need a crystal ball. You don’t need to spend countless hours following the economic news. You don’t need to study earnings call transcripts.

How cool is that?!

Why Tesla stock price history matters

As a trend following stock trader, my most important source of information I use to make all my trading decisions is the movement of price and volume.

That’s right, the history of price and volume.

This type of technical analysis is also called Price Action Trading.

Price action trading is the discipline of making all your trading decisions from a stripped down or “naked” stock chart.

Price action traders use almost no technical indicators; they base their trading decisions solely on the movement of price and volume.

Hence, Tesla stock price history is extremely important to price action traders.

Tesla stock price history

Here’s my favorite graphical representation of Tesla stock price history. This near real-time Tesla stock quote ticker and stock chart are provided by TradingView.

A visual representation of historical data

There is, in fact, an amazing amount of information in this Tesla stock quote widget.

A picture is worth a thousand words…

That is definitely the case for a stock chart, even if it’s just a simple line chart.

This visual widget consists of the following major elements.

  1. Tesla’s stock exchange symbol (TSLA) in the title
  2. The current state of the market (next to the title at the right)
  3. The TSLA stock quote ticker being updated automatically
  4. The TSLA stock chart in six different time frames

Let’s have a look at each of these elements in detail.

Tesla’s stock exchange symbol

The title contains the symbol under which Tesla is listed on the Nasdaq stock exchange.

In this case, the symbol is TSLA for Tesla Motors.

The current state of the market

The current state of the market is indicated at the right of the title.

These are the four possible options.

  1. Market Closed – The market is currently closed
  2. Pre Market – Tesla is being traded pre-market (before market hours)
  3. Market Open – Tesla is being traded during regular market hours
  4. Post Market – Tesla is being traded after-hours (after market hours)

There are important differences between extended-hours trading (pre-market, post-market) and trading during regular market hours.

Tesla stock quote ticker

The TSLA stock quote ticker itself is automatically updated and contains four elements.

  1. The last market price of Tesla stock (in bold)
  2. The letter D in orange if the market is not closed now
  3. The change of the price in USD since yesterday’s trading session
  4. The same change of the price but in percentage

The letter D (if visible) indicates that the last price shown is 15-minutes delayed versus the current real-time price on the market.

Multiple time frames

Finally, there’s the line chart.

You can choose to visualize Tesla stock price history in six different time frames.

  • “1d” shows the evolution of the price today (intraday)
  • “1m” stands for the last 30 days before today
  • “3m” shows a 3-month period before today
  • “1y” shows a 12-month period before today
  • “5y” is, of course, a period of 5 years before today
  • “max” shows Tesla stock price history since the beginning

By default, it shows the evolution of Tesla stock price history in the previous year.

Thank you for reading 🙂

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Categories: Stock trading

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