If TSLA trades through $427 during RTH tomorrow it should be $500 in a jiffy. So much easy money being long in a bull market. I do not see the appeal retail has with short selling.
Because a lot of traders naively believe that they have the ability to predict tops and bottoms. These traders are not trading the market, they are trading their ego.
Yes, TSLA is indeed strong. However, traders must also look for any possible reversal that might lurk in the dark, so to speak. Right now the only bear scenario I can see is a possible price rejection at the (down) gap level that was formed on September 8, on the 4h chart. If the down gap is filled and the price is immediately rejected (tomorrow or later during the week) then more downside action could develop, at least in the short term. Generally speaking, if the trader is almost certain that a financial instrument will go up, he should always look for any possible bearish scenario, and vice versa for short positions. This ability to study and be prepared for ANY possible scenario and counter scenario is what truly separates the pros from the amateurs. The pros only trade the market, not their ego. If the price is not acting the way it is supposed to, they quickly get out of the way and don't argue with the market. They can even do a stop and reverse, that's how flexible they are.
Our dear leader is fond of saying ... that people are sayin'. That alone is never a good reason to buy or sell. Or come to think of it, re-elect someone who uses that justification/rationalization.
I'm not a fan of shorting companies that can easily turn on a dime. Put options is probably the safer route if you want to short.
I've heard the market maker of TSLA saying the stock is worth $150 and they have nothing proprietary in terms of technology that other makers don't have (similar tech) having said that; I would not short until the next leg down (it's coming). And even then I'd but puts.
Too many new traders thinking they will make millions shorting stock without understanding that borrowing stock to short it, is the riskiest thing you can ever do. Your risk to the upside is unlimited. At some point, you have to cover and return the shares of stock you borrowed. Most of the time, you would be chasing the stock higher and higher, piling on the losses. In the case of TSLA, your broker will send you a margin call then, close your position resulting in huge losses for you. The broker is not going to take huge losses on your account. Why would they? If you are going to short a stock, buy a put option instead. Your total risk on a worst case scenario is losing the cost of the premium say $500 and not a penny more.
Hey buddy, i wonder if you will ride the TSLA storm? This morning it is already $440. Will you leg in a naked put credit to collect some premium?