I'm also looking at this. Correlated companies move in sync together a lot of the time. Both showing down patterns on levels. AMD double short levels together, meaning best to wait for the second one. That produced only an intraday reaction, and then exceeded even that. However, by how much? As much as NVDA's level which looks like random movement on AMD. This is equivalent of a triple resistance because AMD 2 levels + NVDA 1 level =3. I was thinking that AMD could retest the upper red level at least, because markets like to do those kinds of things. Ss NVDA will probably be lower at the time AMD hits that level, if it does. That is one method of exit target. Of course, the general market is also correlated, which could do something too and ruin plans... It might just be that NVDA is a reaction too...
Prediction Based Trading
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I'm also looking at this. Correlated companies move in sync together a lot of the time. Both showing down patterns on levels. AMD double short levels together, meaning best to wait for the second one. That produced only an intraday reaction, and then exceeded even that. However, by how much? As much as NVDA's level which looks like random movement on AMD. This is equivalent of a triple resistance because AMD 2 levels + NVDA 1 level =3. I was thinking that AMD could retest the upper red level at least, because markets like to do those kinds of things. Ss NVDA will probably be lower at the time AMD hits that level, if it does. That is one method of exit target. Of course, the general market is also correlated, which could do something too and ruin plans... It might just be that NVDA is a reaction too...
Thought I'd give an update, as AMD/NVDA combo has been relevant recently. The NVDA short I called earlier on the purple line on Friday for a measly gain would have been up huge but closed quick because of weekend fears... I realize that's what might have happened regardless if I had taken the GOOG trade, because the timing was the same. Hindsight bias. Anyway, regarding yesterday's call of NVDA's exit being when AMD hits its own red level, that seems to have been the case. If AMD had been shorted on the red level and held, it would have been one of those breakeven trades, vs NVDA's short profitable trade. This time, it was AMD's level that appeared relevant while appearing as random movement on NVDA. A few other things too, but you get the idea.
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regretted not having held the short. dang it.
long SPY 406.90
long SPY 406.90
closed 407.75
I bought X at 26.54 but didn't reach the exit target so I cut it for a loss; didn't want to risk profits because it was a good day. I messed up the position size too. If it gaps decently down I might go for a small long with the exit target what the initial entry was. I suspect it will gap up tomorrow though.
537.57 on NVDA looks like a nice spot to go long if it goes down later on. I thought that about some other things though, and it ended up having big drawdown before working out to profit/breakeven.
537.57 on NVDA looks like a nice spot to go long if it goes down later on. I thought that about some other things though, and it ended up having big drawdown before working out to profit/breakeven.
long baba 205
close 208
Back into the 400s today. Need to just keep disciplined. Could have been up a lot more overall, but just broke some of my rules and turned big profit into losses due to greed, fear, frustration, etc. but mainly because I was experimenting with options on TDA which didn't work out. Basically, I took option size losses and crawled back with stock sized gains. The system lets me break lots of rules and do everything wrong and still make money, just not nearly as much. No one is immune to human error. I'll post my statement, including the previous losing month, at end of this month.
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Got smacked back down. Shorted T yesterday at the high, but closed it relatively quick and missed the big move, then longed it near EoD yesterday, and then it gapped down big. I realized (in hindsight) the technical pattern that implied it would be a big move and how, in those cases, the levels in between may fail. Other things too but whatever.
Didn't use crazy leverage but recouped half of the losses on multiple trades today, one of which was NVDA short. I missed the TWTR high on day short because I was already in some other trades- high volume on high right on the level, picture textbook trade. Hopefully I'll be able to make fresh highs this week.
