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Tesla Talk How to Buy Tesla Stock Like a Boss

bullish on Tesla stock

Did you know that in December 2019 Tesla stock hit an all-time high?

You may want to make some money from Tesla stock, but you might not know how you can actually do this. How do you even buy a Tesla Share? Should you day trade, or should you adopt a buy and hold method?

Read on and you’ll discover how you can make money from Tesla shares.

Whether you’re a fan of the company, or you’re just looking to make some money, this post will teach you how to invest in Tesla.

1. Select an Investment Platform

If you want to invest in Tesla, you first need to select an investment platform.

That’s because an investment platform will provide you with a way to actually buy and sell Tesla shares. Now, choosing an investment platform can be a little bit tricky as there are lots to choose from.

At the most basic level, you want to select an investment platform that doesn’t charge too much in the way of commissions. After all, the more you pay in commissions, the less you make when you close out your trade.

Fortunately, most platforms are pretty upfront in regards to how much they will charge you. Following this, you can work out how much you will need to pay, per trade, well ahead of time.

It’s worth noting that some zero-commission trading platforms are hitting the market.

These platforms will not charge you a commission whenever you make a trade, and so they can be very tempting for people that are new to stock trading. However, such platforms can charge you in other ways, and so you should read the small print before you use a zero-commission trading platform.

The user interface is another thing you want to pay attention to when selecting a trading platform.

If the user interface is too complicated, you may struggle when trying to purchase and sell stocks. This might not sound like a big deal, but you might lose a lot of money if you can’t sell a stock at the right moment in time.

Thus, you should try out a wide range of trading platforms, before you settle on a particular option.

This isn’t that hard to do, as most platforms allow people to create ‘virtual trading accounts.’ Using these accounts, you can experiment with a given platform, and determine whether it is right for you.

2. The Day Trading Approach

Once you’ve selected a suitable trading platform, you then want to decide on an investing approach.

One method you might want to consider is the ‘day trading‘ approach, and this is when you buy and sell tesla shares on a daily basis.

With this approach, you will make money from the daily fluctuations in the Tesla stock price. This approach has the potential to make you the most amount of money in the shortest period.

That’s because Tesla shares can be very volatile, as the price can change dramatically over a day. If you time your trades well, you will be able to make some good returns within the space of 24 hours. Of course, this volatility means that this trading strategy is also the riskiest and most stressful approach.

After all, if you adopt this method, you will obsess over the Tesla share price, day in and day out, and this will probably give you a lot of anxiety.

That said, you can protect yourself by creating ‘stop-loss’ orders.

This is when you tell the trading platform to sell your stocks if they hit a certain price. For instance, you might decide that you want to sell your Tesla stocks should they lose 10% of their value.

Creating a stop-loss order can be difficult, and so you might want to create a ‘fake’ one using your virtual trading account. In doing so, you can figure out how this all works, without risking any ‘real money.’

3. The Buy and Hold Approach

The other trading approach you might want to consider is the ‘buy and hold’ method.

With this approach, you simply buy some Tesla shares and then hold onto them for months or even years. This approach is generally the least stressful approach, and it can also make you the most money in the long term.

Of course, this approach will only work if you’re relatively bullish on Tesla stock.

That’s because you’re assuming that Tesla will be around for a while and that the stock price will increase in the future.

4. Should You Diversify?

So far, we’ve gone through a general overview of what you need to do, should you want to purchase some Tesla shares.

Now, while it’s a good idea to buy Tesla shares, you might want to think about diversifying your trading account. In doing so, you will be able to reduce your overall risk exposure, and you might also end up making more money.

One way you can diversify your stock holdings is by purchasing the shares of another company, that belongs to the same sector. So, you might buy Volkswagen shares, as they also sell cars.

However, a better approach is to purchase the shares of companies that belong to other sectors.

In this instance, you might buy some Facebook shares, alongside your Tesla shares. This approach works well because it protects you should there be any issues with a particular sector.

Ready to Buy Some Tesla Stock?

Now that you’ve read this post, you should understand how you can buy some Tesla stock.

It’s important to remember that Tesla is one of the most volatile stocks in the world. This volatility generally occurs because people don’t understand the company, but also because a lot of people want it to fail.

Therefore, if you invest in Tesla, you should expect the stock price to go a bit wild, and you need to accept this. However, it looks as though Tesla is just getting started, and so if you invest now, there’s a good chance you’ll make a decent return at some point in the future.

Did you like this post? If you did, please read some of the other posts we have on our site!

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