Critique this trade? $SMCI

[KGTrader4]

I bought SMCI a week ago, at 64.22. The setup was a bounce after a pullback to the 10 day. I closed the position today, first sold partial, then closed the rest of the position. Average selling price was 71.40.

My reasoning was I had a nice profit in a short time, the stock went what to me seems parabolic, and RSI was closing in on 80 (RSI was the biggest reason).

did I do the right thing? What gave me pause, and made me wonder, was the high volume today with the stock up over 6%. But I went ahead and closed it anyway, considering we have not broken above the 200 day on the general market, which is keeping me cautious.

I’d maybe look to buy it back on a pullback if I get it. Otherwise, move on.

 

[deaddog]

I bought SMCI a week ago, at 64.22. The setup was a bounce after a pullback to the 10 day. I closed the position today, first sold partial, then closed the rest of the position. Average selling price was 71.40.

Did you follow your rules? LOL

Sorry it's the only way I can critique a trade.

 

[KGTrader4]

Did you follow your rules? LOL

Sorry it's the only way I can critique a trade.

ugh.
Somehow I knew you would be the first to chime in LOLOL.

Followed my rules on the buy
Followed my rules on taking partial profit at 10% gain.
Didn’t really have a rule on closing out the position other than expecting a pullback after a parabolic gain and respecting overbought as indicated by RSI over 70.

So I guess I followed my rules.

 

[deaddog]

ugh.
Somehow I knew you would be the first to chime in LOLOL.

Followed my rules on the buy
Followed my rules on taking partial profit at 10% gain.
Didn’t really have a rule on closing out the position other than expecting a pullback after a parabolic gain and respecting overbought as indicated by RSI over 70.

So I guess I followed my rules.

Why didn't you buy at 54 or 58.50?
It's easy for me to trade off the left side.
What rule do you have for entry?
Mine would be when the stock breaks out to new high.

 

[KGTrader4]

Why didn't you buy at 54 or 58.50?
It's easy for me to trade off the left side.
What rule do you have for entry?
Mine would be when the stock breaks out to new high.

it wasn’t on my radar when it was $54. My rule is stock in an uptrend after breaking out of a base, then pulls back on low volume, is worth a look. (I know that’s not a hard rule, I don’t use hard rules, I look for charts that meet that criteria.oh, maybe that’s a rule.

 

[deaddog]

it wasn’t on my radar when it was $54. My rule is stock in an uptrend after breaking out of a base, then pulls back on low volume, is worth a look. (I know that’s not a hard rule, I don’t use hard rules, I look for charts that meet that criteria.oh, maybe that’s a rule.

So what bought the chart to your attention?

 

[KGTrader4]

I’ve got a couple of guys I follow on Twitter who I follow, two inoarticular whom I like a lot and think are pretty smart and experienced.
One has a really good service, posts before the open and after the close, with charts from marketsmith, and comments, actionable ideas, etc. the value for me, besides getting ideas (which I then vet myself) is I get to look at about 50 charts every day, charts with comments from a full time trader, every day, which I learn from, he also usually includes a video or two with comments on the market or on a specific chart. It’s not a cheap service at $100 a month, but it’s worth it to me for learning. I also talk to the guy via PM on Twitter if I don’t understand something. My goal is to eventually be good enough that I can just subscribe to Marketsmith and find ideas myself, but for now this is terrific.
I got the SMCI idea from him.

the other one is a guy who posts on Twitter, and just started using a new Twitter service called “Super Followers” . I pay $10 a month to be a Superfollower and he posts comments, ideas, and videos, restricted only to his “super followers”. His stated goal is to both exchange ideas but also to mentor, and he’s helped me. He’s not a full time trader yet, but he’s good and has 45,000 followers (not Superfollowers, just regular followers on FinTwit). Nice guy too.

 

[optaiwan]

I bought SMCI a week ago, at 64.22. The setup was a bounce after a pullback to the 10 day. I closed the position today, first sold partial, then closed the rest of the position. Average selling price was 71.40.

My reasoning was I had a nice profit in a short time, the stock went what to me seems parabolic, and RSI was closing in on 80 (RSI was the biggest reason).

did I do the right thing? What gave me pause, and made me wonder, was the high volume today with the stock up over 6%. But I went ahead and closed it anyway, considering we have not broken above the 200 day on the general market, which is keeping me cautious.

I’d maybe look to buy it back on a pullback if I get it. Otherwise, move on.

View attachment 292476

i happened to see this company has an Ad at a Taipei MRT station to recruit people in Taiwan five months ago (the ad also idenfities the stock ticker name, which was kind of a bullish signal to me) and out of curiousity i checked its stock price back then and it was low. Now since you brought up the stock, that piece of memory came out of my mind.

 

[KGTrader4]

Wonder if AMAT earnings beat tonight could be a catalyst for Semis tomorrow, in which case I kick myself for selling.
But I bought some AMAT just now after hours, it was only up 2%. Stop,5% below my buy point of $10.05, low risk trade I’m trading small right now. So if SMCI goes because the group goes, I still make money

 

[maxinger]

I bought SMCI a week ago, at 64.22. The setup was a bounce after a pullback to the 10 day. I closed the position today, first sold partial, then closed the rest of the position. Average selling price was 71.40.

My reasoning was I had a nice profit in a short time, the stock went what to me seems parabolic, and RSI was closing in on 80 (RSI was the biggest reason).

did I do the right thing? What gave me pause, and made me wonder, was the high volume today with the stock up over 6%. But I went ahead and closed it anyway, considering we have not broken above the 200 day on the general market, which is keeping me cautious.

I’d maybe look to buy it back on a pullback if I get it. Otherwise, move on.

View attachment 292476

Don't bother to see the RSI, MA ... those are useless and worthless.
SMCI will go up or down not because of RSI, MA ....

you have decided to close all your positions.
Don't even think of going in again.

SMCI has been on the uptrend since 2018.

If I were you, I'd probably leave say 1/4 of my long position opens.
And had my stop in place.