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Taking an insane journey on Tesla stock
10 Sep 2020 (121 views)

I was bullish on Tesla when it was at $200 (USD) and on the way to $300 ($1,000 to $1,500 before the split). I held a long position.

Above $300, I felt that the price was too high. But I still held on to the long position and cleared it at $350. I made a good profit of several ten thousand dollars.

When it reached $375, I decided to sell Tesla short on CFD (contract for difference). This is like a derivative. 

Tesla continued to climb over $400. My short position showed a big paper loss. A friend sent a price chart to me and advised me to clear my position. The price trend was going up. The momentum was strong. 

I held my short position. Within two days, the price went beyond $500. My "marked to market" loss was $60,000. It wiped out my earlier profit and still showed a big net loss. I transferred more funds to top up my margin.

I considered $500 to be an insane price. In fact, it went as high as $525 pre-market. 

A few events occurred and Tesla price turned around. Each event was not really significant, but it gave the excuse for the speculators to take profit. Within 3 days, Tesla price dropped below $400. 

I cleared my short position at $400 and took a loss of $10,000. Tesla price continued to drop until $330. 

I bought 300 shares at $345. Why did I buy the shares at this price, when it is above $300 (which I considered to be the upper limit)?

The answer - I am now insane. I am now infected by the insanity that is quite prevalent around Singapore. 

How high do I expect the price to go? Maybe $400 to $450. 

Tesla stock is now $385. I will wait for it to rise another 10%.

Tan Kin Lian






 


Taking an insane journey on Tesla stock
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I was bullish on Tesla when it was at $200 (USD) and on the way to $300 ($1,000 to $1,500 before the split). I held a long position.

Above $300, I felt that the price was too high. But I still held on to the long position and cleared it at $350. I made a good profit of several ten thousand dollars.

When it reached $375, I decided to sell Tesla short on CFD (contract for difference). This is like a derivative. 

Tesla continued to climb over $400. My short position showed a big paper loss. A friend sent a price chart to me and advised me to clear my position. The price trend was going up. The momentum was strong. 

I held my short position. Within two days, the price went beyond $500. My "marked to market" loss was $60,000. It wiped out my earlier profit and still showed a big net loss. I transferred more funds to top up my margin.

I considered $500 to be an insane price. In fact, it went as high as $525 pre-market. 

A few events occurred and Tesla price turned around. Each event was not really significant, but it gave the excuse for the speculators to take profit. Within 3 days, Tesla price dropped below $400. 

I cleared my short position at $400 and took a loss of $10,000. Tesla price continued to drop until $330. 

I bought 300 shares at $345. Why did I buy the shares at this price, when it is above $300 (which I considered to be the upper limit)?

The answer - I am now insane. I am now infected by the insanity that is quite prevalent around Singapore. 

How high do I expect the price to go? Maybe $400 to $450. 

Tesla stock is now $385. I will wait for it to rise another 10%.

Tan Kin Lian