TSLA Investor Discussions

[jerry33]

If you set a high limit to sell how would it execute below your price?

It wouldn't. You would have to cancel and place another sell order to have it sell at a lower price.

 

[dmckinstry]

I tried to set up limit orders to sell portions of stock at different points in case there's a short squeeze or similar when I'm not able to get to a computer. When setting up a $75 limit order it told me that the limit price was too far from the market price. Are there actual market limits to what prices you're allowed to set up limit trades for, or is this just a rule imposed by my trading platform?

It must depend on your brokerage account. I set up 4 different sell limits over a month ago. None of them may trigger, unless Steph's ideas come to fruition. One is at $60, a second at $120, a third at $240, and a fourth at $480.

A dream come true if it happens. Hey! One can dream.

 

[thelastdeadmouse]

I'm not sure because I've never set a limit so far from the current market price, but I want to reiterate incase you missed the discussion a few pages back: I do not recommend setting limit orders to sell shares (or buy for that matter) at prices that are way-out-there and then keeping them open indefinitely. If the price takes a sudden plunge one day, well below or above your limit, you risk having your order filled at prices nowhere near the market price that day.

As an alternative, I suggest setting a notification. Have your broker email you when the price reaches X (where you would have set the limit order). That way, once you get the notification, you can get yourself to a computer, check on the news of the day and the current market price, then make an informed decision about whether or not to buy or sell that day and at what price.

I have notifications set up currently, the plan for the limits was mostly as a safety net. For example I was in Tahoe earlier this year during the Exec's leaving panic visiting family, and by the time I had access to a computer the price had already jumped back up and I miss my opportunity to buy. I was going to set up staggered orders so I'd sell 25% at $75, 25% at 125, ect, so I wouldn't miss out completely if there was a short squeeze when I couldn't get to a computer. I'd remove the orders and manage it myself if I ever saw the prices get anywhere near the limit orders.

 

[Citizen-T]

If you set a high limit to sell how would it execute below your price?

Not what I meant. I mean, let's say that you set a limit to sell at $40. On day x TSLA closes at $39. That night, Toyota announces that they are acquiring Tesla for $200 a share. The next morning, your order gets executed at $40 because that's what your limit was set at and someone else put in a buy limit for $40. You just got screwed out of $160.

Obviously that is a dramatic example, to make my point, but you can really get killed by stuff like this if you just let buy/sell limit orders float out there for arbitrary prices.

Alternatively, if you just set a notification, on day y you would have got notified that TSLA reached $40. You'd go to check what's up and see it is trading at $200. You decide to cash in and put in a sell order with a limit of $200. It is just as effective and you avoid the risk of getting caught up in a big move.

 

[Citizen-T]

I have notifications set up currently, the plan for the limits was mostly as a safety net. For example I was in Tahoe earlier this year during the Exec's leaving panic visiting family, and by the time I had access to a computer the price had already jumped back up and I miss my opportunity to buy. I was going to set up staggered orders so I'd sell 25% at $75, 25% at 125, ect, so I wouldn't miss out completely if there was a short squeeze when I couldn't get to a computer. I'd remove the orders and manage it myself if I ever saw the prices get anywhere near the limit orders.

I did something similar when I was cruising the other week, but canceled all my orders as soon as I got back. That was an extreme situation, because I had no internet access at all for a week (so I wouldn't receive notifications). If your only problem is that you can't get to a computer, I'd suggest you either call your broker and make the trade, or use a broker that has a mobile app you can use to trade in a pinch.

 

[jerry33]

Not what I meant. I mean, let's say that you set a limit to sell at $40. On day x TSLA closes at $39. That night, Toyota announces that they are acquiring Tesla for $200 a share. The next morning, your order gets executed at $40 because that's what your limit was set at and someone else put in a buy limit for $40. You just got screwed out of $160.

Obviously that is a dramatic example, to make my point, but you can really get killed by stuff like this if you just let buy/sell limit orders float out there for arbitrary prices.

Alternatively, if you just set a notification, on day y you would have got notified that TSLA reached $40. You'd go to check what's up and see it is trading at $200. You decide to cash in and put in a sell order with a limit of $200. It is just as effective and avoid the risk of getting caught up in a big move.

Of course, if it goes down to $20 overnight you would have lost $20. The decision is whether you think the $20 or the $200 is more likely to happen.

 

[Citizen-T]

Of course, if it goes down to $20 overnight you would have lost $20. The decision is whether you think the $20 or the $200 is more likely to happen.

Sorry don't follow you there. If it went down to $20 overnight it doesn't matter if you had a sell at $40 or a notification at $40. Neither is tripped.

 

[jerry33]

Sorry don't follow you there. If it went down to $20 overnight it doesn't matter if you had a sell at $40 or a notification at $40. Neither is tripped.

Assuming it goes up to $40 and down to $20 before you can act on the notification. Sometimes the peaks last only a short time.

 

[Citizen-T]

Assuming it goes up to $40 and down to $20 before you can act on the notification. Sometimes the peaks last only a short time.

Oh ok. I mean that's true, you are giving up the computer's insanely fast reflexes in order to ditch computer's infinite stupidity. I think it is extremely unlikely that a month or two out you set your sell order for exactly the peak and therefore would have benefited from having the computer trade for you. I think it is much more likely that (if the overall trend is up) the computer would trade too early and you'd benefit from the extra 15-20-30 minutes it takes you to get to a computer.

So yeah, if you are so good that fortunes are won or lost on minutes or tens of minutes of price action, you can make your own rules. I'll stick with mine cause I'm not that good.

 

[Citizen-T]

TSLA is pretty much a small child of an investment---it takes lots of attention unless you don't mind losing it.

That was great. You've used that before, haven't you?

 

[tander]

That was great. You've used that before, haven't you?

Actually I think I just coined that, then I thought it was stupid so I deleted it, but now it is wisdom for all to appreciate after-all.

 

[tander]

On another note, anybody have any idea as to the direction today, I'm not complaining but I'd like to think it is something other than the usual volatility? Fisker bad pr+plus Elon Musk talking about going to the graveyard=stock price up 5%???

 

[gg_got_a_tesla]

Sig #1 (and #2) delivery too?!

 

[dmckinstry]

On another note, anybody have any idea as to the direction today, I'm not complaining but I'd like to think it is something other than the usual volatility? Fisker bad pr+plus Elon Musk talking about going to the graveyard=stock price up 5%???

I was about to say the same thing. Again, not complaining, but I just don't know what's happened that we've missed.

 

[Citizen-T]

I'm baffled as well. Was really hoping to retest the lows that I missed. Oh well. #firstworldproblems

 

[tander]

Sig #1 (and #2) delivery too?!

Does anyone outside of TMC know about them? Does the market really care about 2 more cars?

 

[Citizen-T]

Does anyone outside of TMC know about them? Does the market really care about 2 more cars?

I didn't see it hit the mainstream media, but that doesn't mean hedge funds aren't moving on it. It goes a long way to validate that the production issues are indeed minor and production is not at a standstill. Founders may be willing to take car that is not quite complete to help the shares appreciate, but the sig holders are one step closer to the average Joe, so the car must be one step closer to "done".

 

[jerry33]

I think it is extremely unlikely that a month or two out you set your sell order for exactly the peak and therefore would have benefited from having the computer trade for you. I think it is much more likely that (if the overall trend is up) the computer would trade too early and you'd benefit from the extra 15-20-30 minutes it takes you to get to a computer.

You're assuming that it only takes a few minutes to get to a computer. If you work all day, you aren't going to be able to do that--or even if you can, there are always emergencies at work that require your full concentration. The only reasons to set it 60 days out are: You think the stock will do something in the next two or three weeks and you don't want to have to enter a new order in every couple of days. If the situation changes (but the change didn't trigger the transaction) you can always cancel the order and create a new one.

I think we're both on the same page, just a difference in our daily life requires a different strategy as far as timing goes.

 

[raymond]

... but that doesn't mean hedge funds aren't moving on it.

At these low volumes I'd be very surprised if any funds are involved. Low volumes imply high volatility, that's all.

The nice side-effect is that for each $ up, a few shorts are forced to buy, creating more demand and feeding the upward trend, causing more shorts to be forced to buy...

In other news: today those shorting TSLA lost $34 million. :tongue:

 

[Johan]

In other news: today those shorting TSLA lost $34 million. :tongue:

Only if they covered, and only if their entry was below today's prices... I'm guessing very few short sellers covered today and if any probably those who started shorting when the stock was 34-36, thereby taking profit... You're not per definition stupid if you short TSLA, you are just playing it differently.

I sold some today at 30.90 that I got at 28.50, because I see no reason for the stock to go up today (Nasdaq stood still) and it will probably "correct itself tomorrow morning with a few big volume orders (seen this happen many times with rhis stock). Watch the first hour tomorrow. Or maybe there will be some news and it will soar tomorrow and I'll be the fool...