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

bigfry Category1 September 15, 2020 1 Minute

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!

Published by bigfry

Hi, I’m Nathan. I majored in Finance and minored in Piano Performance at Boston University (graduated in 2020). Outside of trading/investing, I enjoy programming, teaching and playing piano, teaching and playing Go, fishing, and watching anime. I also started my own Boba company while at BU. I'm currently teaching Go full time, which has been the best job I could ever hope for. I'm also currently attending the App Academy bootcamp which started in January 2023. View all posts by bigfry

Published September 15, 2020

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

vamsu (@vamsu) says:

September 16, 2020 at 12:31 AM

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.

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vamsu (@vamsu) says:

September 16, 2020 at 12:33 AM

**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?

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bigfry says:

September 16, 2020 at 11:20 PM

Hi Vamsu, thanks for the question. I’ll make a post about the Monthly RSI divergence during this week’s blog. If I somehow forget, please remind me.

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