Will TSLA Make its Move this Week? Or RIVN?

Markets look like they will keep selling but TSLA and RIVN might have other ideas.

You have probably heard the saying, “it’s a stock pickers market.”

I believe this to be true 100% of the time. And while my long-term portfolio does include sector ETFs, the best returns come from picking the right stocks.

The same holds for short duration swing and breakout trading. The best returns come from finding the right stocks at the right time.

So that is, has been, and always will be my focus. Finding the right stocks.

The keys to avoiding big losses while taking advantage of outsized gains from individual stocks is staying disciplined and sticking to your trading plans.

This is true for any ticker you trade.

That is why for every trade you take, before putting your money to work you should identify your:

1. Thesis - understand both bull and bear cases

2. Entry - what is signaling you to take the trade?

3. Stop loss - where will you exit a failed trade?

4. Targets - at what levels will you take profits?

If you like acronyms (I do) you can ask yourself before taking a trade, “have you passed the T.E.S.T.?” Thesis, Entry, Stop loss, Targets.

If you are an options trader, you have an additional step of identifying which contract works best for your trade.

For every trade I outline you can expect all of the above information plus a few additional thoughts.

There is no other way to approach this kind of trading. You must have all of the information sorted at the start.

And this week I am excited to have identified set ups in both TSLA and RIVN.

We will get to both but first, a recap of all four of the most recent trade ideas.

Two longs (SHOP, MRVL) and two shorts (OXY, AMAT), all of which are working out nicely.