Sidestepping Danger; Chess Moves

I played TSLA on the short side earlier this year for a nice win. But I did so knowing full well the risks involved in playing a momentum darling with a charismatic CEO, not to mention a company with a cult following and a heavily-shorted stock. 

While that trade worked out, it looks like this one will not.

Given today's move higher after CEO Musk's tweet this weekend, I am going to take the small loss instead of risking a dangerous ride higher in a squeeze this week.

I covered my TSLA short just now at $195.60 from my $190.88 entry for a small loss. Again, in order for those wins to really mean anything, at least according to my philosophy, taking a series of small losses is simply inevitable in trading. 

TSLA may very well roll back over into its technical downtrend. But I will wait for a better spot to get involved before pressing that bet. 

Beyond Musk's tweet, note the daly chart for TSLA, below, responding to prior lows today, another reason for me to cover and take the small loss (as well as crude oil trying to reverse higher).