Doubled short position on TSLA and made a tighter stop loss.

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. 

TSLA Daily Pyramiding 9_15_2020

Have a nice rest of the week!

 

3 thoughts on “Doubled short position on TSLA and made a tighter stop loss.

  1. Thanks for the update, Nathan. Would you mind in the next week post talk about the negative RSI divergence on monthly chart on SPY/SPX where in RSI peaked in jan 2018 and we are making lower highs since then but the price is making higher highs. I know you heavily follow this strategy, I am curious to hear your thoughts on this.

    Especially, how we use this data to our advantage without becoming bearish near term as it might take a long time to show any impact even if the divergence is indicating something is wrong. Also, what do be point the divergence shows the real impact on price as well?

    I would appreciate if you could share your overall long term outlook of the market given the divergence on monthly (If divergence on monthly is not a big deal just reply here). Thanks much for your work!

    Good luck with your tsla trade.

    Liked by 1 person

  2. **Corrected**
    Especially, how can we use this data to our advantage without becoming bearish near term as it might take a long time to show any impact even if the divergence is indicating something is wrong. Also, what would be point the divergence shows the real impact on price as well?

    Liked by 1 person

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