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Tuesday, 23 February 2021

Tesla and Alphabet trading update

My Tesla short trade is still open, with the trailing stop loss now locking in a profit if there is a sudden rise. I bought a CFD contract for 5 Alphabet shares at the open, but with a lower price as the pre-opening trade was looking weak so I adjusted the order price downwards before the trading day started. I then closed out the first long trade manually when there was a rapid relief rally that petered out, making a small profit on the first Alphabet trade. I then bought it again when it seemed to be trending back up towards its previous support level, but put in a trailing stop loss 25 points down to limit any losses while I was asleep. Overnight Alphabet just dipped into my stop loss price level, so my trade was closed out for a small loss. The share price later rebounded, so my trailing stop loss for Tesla may have been too conservative. So far my trades have been:


TESLA:

17/2    Sold 4 TSLA @ 844.540    closed out by stop loss @ 818.295    profit: $134.74 (USD)

17/2    Sold 4 TSLA @ 806.190    closed out by stop loss @ 777.558    profit: $147.37 (USD)

18/2    Sold 4 TSLA @ 780.520    closed out by stop loss @ 787.860    loss: -$38.08 (USD)

19/2    Sold 4 TSLA @ 788.000    closed out by stop loss @ 793.980    loss: -$30.94 (USD)

20/2    Sold 4 TSLA @ 789.700    position open (currently paper profit of $299.28 USD)


ALPHABET A:

23/2    Buy 5 GOOGL @ 2,055.50    closed out manually @ 2,067.03    profit: $72.65 (USD)

23/2    Buy 5 GOOGL @ 2,065.88    closed out manually @ 2,055.01    loss: -$69.01 (USD)


So far this year's CFD trading in Tesla and Alphabet has made back about 2/3 of the losses I made trading the ASX200 index CFD last year. Perhaps using conservative trailing stop loss orders will allow my winning trades to run with a trend while closing out trades where the price moves against my expectations? Overall out of 76 trades in the past 12 months my win rate has been 38%, which is close to my 'target' of 41% winning trades, but my average loss was -$36, whereas my average win was $39. Letting my winning trades run a bit longer may increase my average winning trade so I become profitable even with a win:loss trade ratio of around 40%. YTD I've done 4 trades with a 50% win:loss ratio and an average win of $141 and an average loss of -$35. Too soon to tell if this is just a random lucky streak or a significant improvement to my trading method.

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