I know your a shorter term trader and I’m here to get better at that.
Having said that, is NVDA a stock that we could hold longer as a position trade given its unique strength and market position? I have a pretty good cost basis on it. But it would bother me to not take the gains I am getting tbh. I heard you mention 420 but then it also sounds like u think it is a buy now. What is the sell signal or reversal pattern on NVDA that I should watch for? Is there a target price for a rocket stock like NVDA? I was thinking of 2020 Amazon or 2021 Tesla as precedents for Nvda . What say you?
I agree that NVDA is more of a longer term hold in your portfolio, and more like AMZN and TSLA as you mentioned. The $420 price target was in reference to the options market as this week is quarterly, monthly and weekly options expiration on Friday.
The selling of a stock is a personal decision. If you bought NVDA below $200 and it doubled in your account it is probably becoming a really large position in your portfolio. I do not like having more than 20% of my portfolio in one stock. Therefore I would trim some and get the percentage back down to 15%.
I thought it was a (short term) buy at $390.00 as the stock pulled back to its 10ema. This is just for short term traders. But, the pullback to the 10ema may be used as an "add-on" buy point if you bought an initial position at the earnings breakout in the $370.00 area.
The stock is roughly 95% above its 200sma and some folks might think that is a sell sign. But, I am not in that camp. With an uptrending market we want to hold the leading stocks in the leading groups and that is NVDA. I see no sell signs unless you are just trimming in order to keep your portfolio in balance. But at $415 I see limited short term upside as well, and the risk/reward profile is not in our favor at this point. $390 yes and $415.00 not so much!
I hope this answers your question.
Oh by the way... Studies have proven that the people who are able to hold quality stocks for the long term are the folks who are most successful in the stock market.
Do you think TSLA and SMCI are two of that quality stock ?
Thanks you Marty.