Hi everyone. I doubled my short position on TSLA at 450 today. My original stop loss on the 487 short was at 600, but moved the overall stop to 550 now, with a mental stop at the previous highs near 500. The overall risk on the trade is still the same or less than before.
If TSLA hits the maximum stop, it’s a 1.5% loss, while if I stop myself out a bit earlier near previous highs, it’s a loss of .5% to my account.
I think there’s a good chance that TSLA powers upwards until Battery day on 9/22/2020, but the risk/reward to the downside is too juicy to pass up on for this trade. The trade idea fails if or when TSLA breaks to new highs, so that is when I will close the short position. I’m looking for a quick continuation of the downtrend here, so if it doesn’t happen within 2-3 weeks, I will exit the trade.
Have a nice rest of the week!