Despite the recent market downturn, the long uptrend and strength of Meta and Nvidia remain intact. While short-term market fluctuations may present challenges, the long-term growth potential of Meta and Nvidia outweighs the current market volatility.
Risk-Reward Profile: While investing in any stock carries inherent risks, the risk-reward profile for Meta and Nvidia appears favorable at current levels. Despite short-term losses, utilizing volatility to compute a close stop-loss level can effectively manage risk in this negative environment while leaving ample room for potential gains. This strategy, frequently employed by seasoned traders, maximizes opportunities in turbulent markets.
Stop level: 480
Weekend Factor: However, it is important to keep in mind the negative exposure to war-related news associated with any long trade carried before the weekend. There's no guarantee that Monday's open will align with or exceed the stop level, potentially resulting in larger losses than anticipated. Therefore, investors should carefully assess their risk tolerance and adjust their positions accordingly.
*************************** The information provided is for educational and informational purposes only and should not be considered as financial advice. Investing in stocks carries risks, and individuals should conduct their own research or consult with a financial advisor before making investment decisions
Trade closed: stop reached
While a stop would never be seen as disappointing, as a professional trader should see the forest and not the trees (I've been discussing this in a tutorial series available on my profile). It indicates that my call was premature, and I will return to the sidelined position I've held for the past few weeks, awaiting improved market conditions to reenter the arena."
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