NVDIA long term short trade

٢٠ أغسطس ٢٠١٨

NVDIA rallied 1000/1500% the past 2 years because of the crypto mining products. The rally has been slowing down and today it seems the support of that trend line broke but it's still at a support level. We are going to wait patiently for a small move up to test resistance before we short it again. The ideal spot is where the blue line is going (orange box). Stop loss around the red resistance zone at 248

٢٠ أغسطس ٢٠١٨

ملاحظة

Entry zone is active now, can short 50% and wait until it slowly turns down again to add the other 50%.

٢٠ أغسطس ٢٠١٨

ملاحظة

That was a very quick one, The daily starts to look as a reversal if they can keep it here. If it does drop again to the orange zone, that it probably was just a shake out of bears. But it's too dangerous to trade it now, so are leaving it as it is.

Because of things like this, i mentioned to only take on half the short pos, to keep the losses small in case of a bear trap. I will keep an eye on this one, maybe we get another chance the coming weeks.

٢٥ أغسطس ٢٠١٨

ملاحظة

This is a good example, to see when a trade goes wrong, usually just leave it as it is and don't try to fight it. Trying to short this one again would have continued to create more losses. We traded the break of that uptrend, tried 50% for the retest of the former support, it failed so the whole trade setup failed. That's the main reason to leave it alone. Only when it drops below out of the channel again and below that green support, we can think about shorting it again.