$SMCI - IMPORTANT NOTE -
Added 2024-10-30 19:19:08 +0000 UTCIf we take out the information we know from today after EY resigning from $SMCI's audit and just look at the chart, we can see that the $49 level was behaving as a resistance level.
Just by looking at the chart, there is just a clear rejection at $49 and a break down below the blue support line at $35 and still searching for support, which will likely be tested at the 0.78 Fib at $28.79.
I am strict on my Buys and thankfully only had 1 Buy in.....as I have with $DELL and $TGT, I did take a hit today but it could have been a lot worse if i had more than 20% of my total allocation in this position......and coincidentally $DELL directly benefited from $SMCI's demise.
That being said, if I waited solely for $49 to hold, then I would not be down at all.........the counter argument here is that we can't hide from all risk, we can only reduce it.
Was the reward high enough for me to take this risk on?....yes it was
But I consistently observe that my worst performing positions are those that I take on too much risk, this is consistent.
It's a reminder for me to strictly keep to just one buy until support is confirmed, it gives me exposure but minimises my risk.
Comments
I’m thinking of taking a first buy here 🤣
Chris H
2024-10-31 02:38:54 +0000 UTCTA doesn’t apply when there are strong fundamental changes eg fraud.
DC
2024-10-30 22:24:58 +0000 UTCThank you brother!
Gareth Neary
2024-10-30 19:59:39 +0000 UTCYOU ARE OG!!!❤️
Sid
2024-10-30 19:54:54 +0000 UTCYou saved me 80% of the allocated cash I had towards SMCI. So I did win here thanks to TLI principles.❤️
Sid
2024-10-30 19:54:04 +0000 UTCThe strategy will protect us from letting us get ahead of ourselves
Gareth Neary
2024-10-30 19:53:36 +0000 UTCTrue, you clearly states all possible outcomes. But like you said, sometimes we need exposure to a stock. It was a calcualted buy from us.❤️ You did follow TLI principles here as well. Thats why many in the group like me did not blink even with 30-35% drop. Cause its first buy with 20 percent allocation for this stock.
Sid
2024-10-30 19:52:28 +0000 UTCNo problem, it does lower your risk greatly and the risk was known here beforehand....so in this case and in hindsight, waiting for $49 even for the First Buy would have made sense
Gareth Neary
2024-10-30 19:47:58 +0000 UTCCAP, thank you for all the teachings through your charts and commentory. The commentory right here shows its alwayz best to buy at support conformation rather than anywhere else even if one has to give up some part of the run. Thank you for keeping it at one buy strictly.❤️
Sid
2024-10-30 19:45:48 +0000 UTClol, I thought buying at $49 was brave and I decided to wait
Updog44
2024-10-30 19:36:37 +0000 UTCThat's brave. 🙂
Stijn
2024-10-30 19:33:11 +0000 UTCI actually started a position today, let's see if I cry later
Updog44
2024-10-30 19:31:51 +0000 UTCFirst Buy is 20% of the allocation I have assigned to a new position. I have a lesson in The Learning Centre on how I position size
Gareth Neary
2024-10-30 19:29:42 +0000 UTCwhen you say, "one buy", are you referring to one share until you receive/identify confirmation?
Daniel
2024-10-30 19:22:55 +0000 UTCDid you sell out your position or are you holding to buy more ?
jamie patel
2024-10-30 19:22:53 +0000 UTC
