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Wednesday, 17 February 2021

My Tesla short - update

In overnight trading Tesla had a sharp upward move at the opening, triggering my trailing stop loss to close out my position. The trade ended up about $100 in profit. When I logged in to check on prices, Tesla had already dropped back sharply, so I opened a new short position and it continued to trade down overnight, ending with my position being about $50 in profit. I've entered another trailing stop loss 16 points above the current price. Currently the trailing stop would close me out around break-even, but if Tesla's share price continues to weaken it will start to 'lock in' some level of profit on this second trade. The trailing stop loss should allow for normal random variation in the stock price, but would be triggered if there is an "up" day of trading in Tesla, or if the downward trend reverses.

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