We have already talked about this stock a few times, I’ll link the posts below. We began cutting positions late September…and what have we noticed with our few remaining positions? They aren’t working to well ☹️. If the strategy is not working…stop doing it! Besides that fact, this popular stock which has been declining and had a large breakout to the downside after their earnings came out lackluster.
The last short we did was Nvidia back in February, making 16.9% (I honestly cant wait to short that pig again! 🐖)
Some critical notes before proceeding forward:
If you have never shorted before: START SMALL. You need to learn the buttons of your brokerage. There will be others at some point.
If you do not know how to short, go to google and type “how to short on (insert your brokerage).” While you are at it, also search “how to set a stop for a short position on (insert your brokerage).” Everyone’s brokerage is going to be different.
Stops are not an option. Personally I use 1x margin to give myself essentially the same breathing room as I do a position in a cash account. Do not be lured in by the heavy leverage. You MUST have a game plan before proceeding. I have never had a margin call or a liquidation event. Do not come crying to me if you do not manage your position. You have been warned.
We do not HODL these. The goal is to get into a winning position relatively quickly, and snag profits. At least that is my approach.
You do what is best for you. Yes, this trade could still go bad, just as a long position can. Anything is possible. But I think odds are in our favor.
The popular stock to short is:
