NVDA Trade on Apr 5, 2023 09:30 from JRockTrades: Tradervue User Stock Trades.

Big Picture

NVDA has been one of the strongest stocks in the market, having over doubled since the beginning of the year. It recently topped out against 280 and has bee in the 270's for a week. It gapped lower on news that was something about google having better AI chips. I have been mentally preparing for the day when the short was obvious.

Technical Setup

NVDA had dropped below 270 in the premarket and that seemed like an obvious level to short from if it popped there on the open. I put two offers to short initially from 269.50 area and then closer to 270. I was willing to for a wick over 270, but my stop was in the 270.35 area.

Trade Management

After the second entry NVDA really dropped quickly. I took 20% of the position off into 269 and the every 50 cents lower into 268. Definitely I covered too much too quickly in this area, which is the only thing to fault myself on in this trade. I put a little back on when it popped into VWAP and then took off as it came into 264 area, which was my ultimate target from the daily chart. Given how quickly it got there, it would make sense to leave some on in case it goes to 260 by the end of the day, but I still basically suck at trading.

Conclusions

I definitely took a lot of profit off the table by covering too much too quickly, but on the overall it was a great trade to identify and follow through with. I thought it would take all day to get to my final target, but it did so rather quickly. The QQQs were in free fall, which helped this trade immensely. NVDA was actually stronger than QQQ, but when you are in one trade already, just stay in that trade. Pretty happy with this result, to make over $2 per share average.