The chart is from April 28th, the forecast is untouched. TSLA is moving through the two earnings resistance levels mentioned from the last update. This is constructive to move through resistance.
Here is a discussion of RISK:
RISK is always 3 ATR's and if ATR (average true range) increases, then position sizes need to be smaller.
For example: Let's say you have a $100,000 account and you want to risk 1% in Tesla. You have to be able to lose $1000 if TSLA drops by 3 ATR's from your entry. So, you figure risk is 8 points average true range (my guess of ATR) times 3 = 24 points to your stop loss. 24 points into $1000 = 45 shares. Keep in mind that 45 shares of Tesla is $8000 or 8% of your capital, but that is what you need to get a 1% risk position on.
Tim 1:32PM EST Thu 5/22/2014
Here is a discussion of RISK:
RISK is always 3 ATR's and if ATR (average true range) increases, then position sizes need to be smaller.
For example: Let's say you have a $100,000 account and you want to risk 1% in Tesla. You have to be able to lose $1000 if TSLA drops by 3 ATR's from your entry. So, you figure risk is 8 points average true range (my guess of ATR) times 3 = 24 points to your stop loss. 24 points into $1000 = 45 shares. Keep in mind that 45 shares of Tesla is $8000 or 8% of your capital, but that is what you need to get a 1% risk position on.
Tim 1:32PM EST Thu 5/22/2014
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