I Missed $86K Trading TSLA...

In this video, I want to talk about how I missed out on making $184,000 on a trade. So a few days ago, I posted this Tesla breakdown on my YouTube channel. And on that trade, I kind of walked you through where I got in, where I got out. Now, after I kind of reviewed this trade, one thing I did see was I left about $184,000 on the trade overall. Now, what I want to cover on this video is what, what I could have done to basically prevent that, or is there anything I could have done to prevent that? And a few tips and tricks to keep in mind for traders. Now, here's the full trade entry exit. Just to kind of break that down first. As you guys can see, I started entering around this price point once again. If you want to see the full recap video, it is on my YouTube channel. I think it was the last video I posted breaking this whole day down. Just go check that out just to get a better understanding of this. But I'm not going to dive into the trade overall. I'm just going to dive into where and how I left money on the table. And like I said, how I could have prevented that, right? So once we go through this trade, a few things you guys can see my entry was around this price point. I got in calls. So basically, I make money whenever the stock goes up, right? And as you guys can see, I kept selling. I kept selling some portions of my position over and over again. Now, basically, if I bought here and I sold my full position at the end where my final exit was, I. I would have made about 184k plus on this trade instead of what I actually made right? Now, a few things, right? Just looking at the contract prices, right? I got in when this contract was trading for about eight bucks, right? I sold some at 1189, I sold some at 15 bucks. I sold some at 19, and I sold my final position at 27, right? And once again, if I held this full position would have made about 184k. Okay? Now, a lot of times as traders, including myself, when I look back at this, it's very easy for me to go and say, oh, shit, I wish I sold, or I held till the final point. I wish I didn't sell here. I wish I didn't sell here. I wish I didn't sell here. I wish I held, right? Even. Even if I held and I sold here, guess what would. What would my mind frame be like? It would say, oh, I wish I held a little bit more because because if I held a little bit more, I could have made an additional 30k or 20k or 40k, whatever the case is, depending on where the contracts went to. Right now what I want to dive into is as traders, guys, and someone that has been trading for a very long time, that's never the case. Like, you're never going to maximize on a trade to its full potential consistently and over and over and over again, it's just not going to happen, especially if you want to be in this game for a long run, right? So I wrote down a few things to keep in mind when you guys are trading and you do miss out on trades. Because what, what typically happens is I realize traders would miss out on play. They'll catch a small piece of a move, right? Let's say they'll get in here, they'll get out there, they'll make a good trade, they'll make a 3R or 4R trade and they'll go, oh my God, I wish I held more. I wish I sold here. I wish if I did that and they start calculating all their profits, just like I kind of titled this video. And once again, I'm just trying to make a point here, not saying I care that I missed out on that. It starts getting to their head and they start messing up on their upcoming trades. So a few things that I kind of follow is this right? Number one, I'd rather be consistent than to have home runs over and over again. Because you think about it, right, you look at it from a home run point of view, how many home runs are you going to have consistently? Maybe one, maybe two, maybe three, right? But if you focus on consistency, if you focus on producing cash flow, if you focus on making money, right, how many times will you be able to consistently do that? Instead of me holding this trade, hoping it keeps going up, me holding my full position, and once the position starts adjusting, I'm unable to maximize on profits. And I'm pretty sure a lot of people watching this, that's happened to where you get into a position. Once you get into a position, it starts flipping. And now instead of you being up 10k or 2k or 200 bucks, whatever the case is, you end up being red, right? That's why one thing I heavily focus on is consistency. I always make sure to scale out. And that's the second point I want to talk about. Scaling out is key, right? When you have a large position or any position at all. One thing that has worked effectively for me is as soon as a position starts Going in my favor. And obviously depending on your trading strategy and trading style, this can be a little bit different. But majority of the time when I'm in a position and it starts going my way, I start locking some in. Because think about it. Let's say I didn't lock this in, right? Let's say I didn't lock this first 25 contract position in, right? At 1189, let's say this position went up, it failed, it trapped me in and it started reversing. You know what would have happened? The trade would have been red now, because I did do that. And let's say the stock did come back to my stop point, right? I would have still walked out of the trade green or break even, right? Because I started scaling out instead of saying, you know what, I'm going to try to ride this up as much as possible. And the reality is, guys, no one knew that Tesla was going to go from 1000 to 1050 during that period, right? No one knew it was going to go from 1000 to 1030 at that time period. The only thing we can do is play a probability game, assess our risk and take the trade from there. And like I said, once you start scaling out, you start producing cash flow, you start locking in profits. Because remember, profits aren't profits until you sell, right? So you can be up 10k, you can be up 100k, but up until you hit sell, it does not mean anything, right? And then finally let go of the trade. I see a lot of traders, right, what they get stuck on. And you know, it happens. It happens with me too. Even when I got out of this position, I was like, oh, man, you know, I should have, you know, held a little bit longer. And when that happens, you need to get into the mind frame of like, hey, this is trading, you know, over and over in times scaling out has worked for me. It has allowed me to be consistently profitable. It has allowed me to make money in the long run. So because this time this trade went higher, I can't look at it from the negative point of view where I wish I held. Because a lot of other trades flipped, right? A lot of other trades I have been in actually flipped. This one was one of the trades that kept going. And that's something that you need to keep in your mind, right? You need to basically let the trade go. You need to let go of how much you could have made, how much you lost, whatever the case is. Because if I hold on to this trade, right? And I say, well, I could have made $184,000. And guess what's going to happen on my next trade? On my next trade, when the stock does go in my favor, right, I won't scale out, I won't take some off the table, I won't lock in profits, which in return will make it harder for me to make money in the long run. Because now when the stock does go against me, guess what's going to happen? I'm just going to burn through money over and over and over and over again. So once again, when you guys are taking positions, make sure you scale out, right? That's number one. Always make sure you have a scale out position. You lock in profits, no matter what, depending on if you're swing trading, day trading, whatever the case is, make sure that's happening as long as you follow your plan. Number two, like I said, make sure you let the trade go. If you take a trade, you missed out on a move, you didn't catch the full move, it's totally okay. Let that go. And then also finally, just keep in mind, guys, you're never really going to capitalize on a full move. There's, there's barely any times probably out of, let's say 100 trades, right? Out of 100 trades, it's probably one, if I'm lucky, two trades where I get in here and I get out maybe there majority of my trades, I'll maybe get in here, get out, get in, get out, or maybe I'll get in here, I'll get out there. And our job as traders is to consistently take a piece out, not try to catch this, right? The perfect bottom, the perfect top, and get caught up in reversals, get caught up in bad trades, get caught up in, you know, being greedy and trying to make tons of money. That's not trading. Once again, consistency will win in the long run. And if you really want to make it in this game, right, focus on consistency, focus on making money over and over again by scaling out, by locking in profits and obviously letting trades go. So I just wanted to talk about that because a lot of people once again brought up, oh my God, man, you know, if you held this test to trade, you could have made so much more money. You could have made X, Y and Z amount. And I was like, you know, real trading doesn't work like that. I wish I held it, but it doesn't. So I was like, you know what, let me, let me get on here real quick. Let me make a video just to talk about it. That, hey, I know I could have made more, but it's okay. There's so many trades where, you know, even trades I probably made 10 or 20 grand, and I look back at it and I was like, wow, you know, if I held this for another hour, I could have made 60k. But in reality, that's not how real trading works. Real trading is following your plan, locking in profits, and doing that consistently. So that's it. Thank you so much for watching, guys.