Tesla, founded in 2003, has been making headlines for years with its innovative electric cars, solar panels, and energy storage products. The company's stock, traded under the ticker TSLA, has also garnered significant attention from investors and traders alike. With Tesla's stock price experiencing rapid growth and volatility, it's no wonder that many people have an interest in learning how to trade Tesla stock.
In this article, you’ll learn how to trade TSLA stock and receive tips on improving your trading profits. Additionally, you’ll get introduced to VSTAR, a regulated and secure trading platform that offers competitive trading costs and a user-friendly experience for beginners and professionals.
Tesla stock (TSLA): Everything You Need to Know
Tesla, Inc. (TSLA) is an American electric vehicle (EV) and clean energy company founded in 2003. The company designs, develops, manufactures, and sells EVs, solar panels, energy storage systems, and related products. Tesla went public in 2010 and has since become one of the most popular stocks in the market.
Tesla is a high-growth company, so its share price is often more volatile than other stocks. This volatility is also driven by the company's performance and news events related to the EV industry. TSLA stock is a popular choice for investors who believe in the future growth of the EV industry. Tesla shares are also popular among long-term investors and day traders seeking to profit from short-term price movements.
How to Trade Tesla stock (TSLA)? A Comprehensive Review
Trading Tesla stock is a great way to invest in the company and potentially earn profits. Now, let's dive into how to trade Tesla stock and maximize your earnings. Before that, reviewing the company's performance, potential, risks and charges is important to understand what you're getting into.
The company has a market capitalization of almost $600 billion, making it one of the most valuable companies in the world. It has consistently beaten analysts' expectations, reporting strong financial results quarter after quarter. The company's potential is also high as it continues to innovate and expand its product lines into other industries like energy storage and solar power. Tesla's strong performance is not only due to its innovative technology, but also to its sustainable business model.
Before trading Tesla stock, it's essential to understand the risks and associated charges. Many factors can affect the stock price, including market volatility, regulatory changes, and company-specific news. Additionally, fees get associated with buying and selling stocks, including commissions and spreads. You can research and understand these charges before making any trades.
Different Ways of Trading Tesla stock: Which Method is Right for You?
With Tesla’s rapid growth, many traders are looking to get a slice of the pie by trading Tesla stock. However, there are various ways of trading Tesla stock, and it's important to understand the differences to make the most informed decisions. Above all, practice proper risk management when trading Tesla stock to minimize potential losses.
Buy Tesla Stock Spots on the Nasdaq
One of the most popular ways to trade Tesla stock is by buying spot stocks on the Nasdaq. Tesla (TSLA) has been on the Nasdaq since 2010 and has experienced significant growth over the years. If you purchased TSLA shares five years ago, for example, you would have made a considerable profit, as the stock price has increased by about 400% since then.
Here’s the deal: buying spot stocks is suitable for long-term holding, as it doesn’t require you to monitor the market continuously. To buy TSLA shares, you're to follow a few simple steps, such as opening a brokerage account, preparing your principal, and deciding on an investment method.
One popular method is to "buy the dip," which means buying the stock when its price drops. Also, you can use the Automatic Investment Plan to invest a fixed amount of money in TSLA shares at regular intervals.
Trade Tesla Options
Trade Tesla stock through options can offer more complex trading strategies. Options are a type of derivative, meaning their value gets derived from the underlying asset, in this case, Tesla stock. Options give you, the holder, the right, but not the obligation, to buy or sell the underlying asset at a specific price and time. Trading options can be suitable for professionals who understand the market and are willing to take on additional risk.
Here’s the kicker, options are only suitable for short-term holding as they expire. To trade Tesla options, it's crucial to pay attention to important dates such as expiration dates and to monitor institutional trading volume, among other factors. It's noteworthy to watch the market closely to make informed decisions on when to buy or sell options.
Trade Tesla stock CFD
Trading Tesla stock through Contracts for Difference (CFD) is another option that you can consider. CFDs allow you to speculate on the price movements of TSLA shares without actually owning them. This means that investors can potentially profit from both rising and falling prices. You might be wondering: what's the difference between trading Tesla stock as a CFD versus buying them as a spot stock? Let's break it down.
Trading Tesla stock through CFDs purely depends on the price trend and isn’t affected by the expiration date, as in the case of options trading. Additionally, CFDs provide more flexibility in terms of principal, as investors can use leverage to trade with larger amounts of money than what they have.
CFD trading is generally suitable for short-term intraday trading and has a high utilization rate of funds. It can also serve as a hedge against stock spot trading. However, note that CFD trading carries a high level of risk due to the use of leverage, and you should understand the risks involved before trading.
Four Steps To Trade Tesla stock CFD With VSTAR
Interested in trading Tesla stock? You can start right away by opening an account with VSTAR. Here is a step-by-step guide to trading Tesla stock CFD with VSTAR:
Open an account or log in
If you don’t have a VSTAR account, you need to open one by providing some personal information and completing the verification process. If you already have an account, simply log in to proceed.
Deposit funds into your account
To easily deposit funds into your account, VSTAR offers various payment methods, such as Visa, Mastercard, international bank wire, Tether, Skrill, Netteller, SticPay, and Perfect Money. Choose your most suitable option.
Search Tesla stock
Thereafter, search for Tesla stock by typing "TSLA" into the search bar on VSTAR's platform. You’ll see the current price, historical price chart, and other relevant information.
Set up the order to buy Tesla stock
After deciding to buy Tesla stock, set up the order on VSTAR's platform. You can choose the amount you want to invest, the leverage ratio, and the stop-loss and take-profit levels to manage your risk. Once you’ve confirmed the order, VSTAR will execute it at the best available price. Remember to monitor your position and adjust your strategy as needed.
Since there are risks attached to CFD trading, then, use appropriate risk management tools. VSTAR offers a negative balance protection policy, which means you cannot lose more than your account balance.
Why Trade Tesla stock CFD with VSTAR? The Competitive Advantage
Here’s why trading Tesla stock CFD with VSTAR should be the right choice for you to have a simple and stress-free experience:
Competitive Trading Costs
VSTAR provides 0 commission and super-tight spreads, meaning you can profit with lower costs. Want to know the best part? With VSTAR, you can start trading Tesla stock CFD with just a small fund and improve your trading profits with its helpful resources.
Regulated and Safe
VSTAR is globally authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC), No 409/22, under the European Regulatory Framework of MiFiD II. VSTAR is also a member of the Cyprus Investor Compensation Fund. Trading with a regulated broker like VSTAR ensures your safety and security.
Stable and User-friendly Trading Platform
VSTAR's trading platform is stable and user-friendly, providing you with a seamless trading experience. The platform is easy to navigate, making it suitable for both professional traders and beginners.
Responsive and Helpful Customer Service
VSTAR's customer service provides traders with the support they need. You can contact the customer service team through phone, email, or live chat.
How to Improve Your Trading Profit? Tips and Tricks for Success
Trading can be a profitable venture, but it requires more than luck or chance. You may be wondering how to manage the risks of trading Tesla stock. Let's explore some strategies for cutting losses and staying cool under pressure.
Keep on Getting Trading Knowledge and Skills
The more you know about trading, the better your chances of making informed decisions. Keep reading trading articles and books, attending seminars and webinars, and following reputable traders to learn more about the market.Trading can be profitable, but it requires more than luck or chance.
Keep Up to Date With News and Events
News and events can significantly impact the market, so stay informed about the latest developments. This will help you anticipate potential market movements and adjust your trading accordingly.
Technical Analysis
Master standard trading tools and learn to read charts. Technical analysis involves using charts and other tools to identify trends and patterns in the market. This can help you make reasonable decisions.
Fund Management
Start from a small fund. Proper fund management is critical to trading success. Start with a small amount of capital and gradually increase it as you become more experienced.
Risk Management
Cut losses with limit orders. No trader is always right, so managing your risks by setting stop-loss orders to minimize losses is essential.
Psychology of Trading
Stay cool and be patient. Trading can be an emotional rollercoaster, but staying calm and patient is important. Avoid making impulsive decisions based on fear or greed, and stick to your trading plan. With the right mindset, strategy, and discipline, you can improve your trading profits over time.
Frequently Asked Questions
How can I buy Tesla stock online?
You can buy Tesla stock online through a brokerage firm or online trading platform like VSTAR. VSTAR is a CFD trading platform that provides CFD trading services where you can trade many kinds of CFDs. All you need to do is open an account, deposit funds, search for Tesla stock, and place an order.
What is the cheapest way to buy Tesla stock?
The cheapest way to buy Tesla stock is through commission-free trading platforms like VSTAR. Consider buying fractional shares to reduce the cost of buying whole shares.
What is the difference between trading Tesla shares CFD and trading Tesla stocks directly?
Trading Tesla shares CFD is a purely price-based transaction that allows you to profit from the stock’s price movement without owning the underlying asset. Trading Tesla stocks directly means that you own the underlying asset and can benefit from both price appreciation and dividends. However, trading Tesla stocks directly may require a larger initial investment and long-term commitment.
How can I stay up-to-date with Tesla news and events that may impact the stock price?
It's important to keep up-to-date with Tesla news and events to make informed trading decisions. You can do this by following financial news websites, subscribing to Tesla's investor relations newsletter, and setting up alerts for relevant keywords on social media. It's also important to stay informed about broader economic and political events that may impact the stock market.
*Disclaimer: The content of this article is for learning purposes only and does not represent the official position of VSTAR, nor can it be used as investment advice.