I have hardly been trading TSLA this year. For my trading style, I need stocks which have well established trading patterns. But TSLA is such a cult stock, all it does is go up. In addition to that, it is a huge mover. It can go up or down $150 in a day on literally no material news. (Maybe tweets hold more value than material news these days. The CEO of a company is buying Twitter founder Jack Dorsey’s first tweet for $2.5 million!) But due to this broader sell-off in the market, TSLA got pulled back with every single stock in our watchlist. I entered this trade based on the support which lies around $600ish. TSLA did drop down to the $500s after that, but is again flirting with $600 levels at this point. Overall, whether you got in at $575 or $610, it doesn’t matter. If we get a recovery in the market, TSLA will be trading above $700 in a matter of 7-10 days.

TSLA was caught in the 12% Nasdaq correction and kept dropping after I put on this trade. This is expected as Mean Reversion Trading does not attempt to catch the bottoms. We just need to be "right enough" about our directional bias to make these trades profitable. In the end we did close this trade for a 94% ROI on money invested.