My opinions are not financial advice! I have not taken, and do not plan to, take any position on
GME
in the near future. The purpose of this post is to try and show how utterly ridiculous it is to set a take profit, and a little bit of the... math I've seen behind it.
"Goooood morning, WSB investors! This afternoon's YOLO lottery rounded out to a solid 'n' sturdy thirty! Ten outta Discord -- thanks to the advice of PoopMaster69! One institutional investor down, so I guess you're all screwed. 'Cause Melvin will NOT let that go. Got another life savings loss on Reddit. 18-year olds are at it again, pokin' holes in their grandpa's retirement fund." -- CyberPunk 2021
Backstory
I find it interesting that some retail 'investors' have tried to pinpoint an actual price to take profit on GME. Rumors have flown around about the cause of the pump, with the firing of
GME
CFO being the #1 theory. While no one knows for sure, all of us can be sure of one thing -- retail investors didn't cause the pump, whales did. The "Hot" stocks, including GME, AMC, EXPR, and BB, were all lit up at the same time around 2:30pm. This is not our game -- unless WSB can muster the same collective buying force that was displayed on their first "pump", this is the whale's game, and retail investors are just a small frog in a large pond. There is no way to set a definitive TP for an unpredictable stock like GME.
The 'Math'
According to past trends, the second wave of a pump tends to hover around 60-70% of the ATH. This aligns closely with the Fibonacci Retracement level of 0.618. We can see here that GME hit resistance around $330 and was rejected several times, making this the ideal price to take profit at. In addition, the bullish volume of the pump did not show very strong signs of resistance.
Fin
I saw a few "analyses" along the lines of that 'Math' being shared in communities. Though that's not the actual math -- that's my own, using the same logic. I'm by no means a professional trader, but you don't need to be an institutional investor or a full-time day trader to realize how absurd the reasoning behind setting a TP for such an unpredictable stock would be. GME is a prime example of "get rich quick or die trying" -- in my personal opinion, if you're going to insist on riding it to the moon, take percentage profits as you go -- that way, when GME or any of the other "hot" stocks suddenly starts following Newton's third law, you won't curse yourself for not taking a profit. And no, GME is not the next Bitcoin -- there are a large number of reasons that should be abundantly clear.
We'll see how accurate the 'math' is. Sadly, I will not be riding GME 🚀🌙. On the bright side, tomorrow is my birthday, so there'll be an abundance of Discord server drama and fresh entertainment from the WSB subreddit.
Remember -- any profit is better than no profit. Ciao!
GME
in the near future. The purpose of this post is to try and show how utterly ridiculous it is to set a take profit, and a little bit of the... math I've seen behind it. "Goooood morning, WSB investors! This afternoon's YOLO lottery rounded out to a solid 'n' sturdy thirty! Ten outta Discord -- thanks to the advice of PoopMaster69! One institutional investor down, so I guess you're all screwed. 'Cause Melvin will NOT let that go. Got another life savings loss on Reddit. 18-year olds are at it again, pokin' holes in their grandpa's retirement fund." -- CyberPunk 2021
Backstory
I find it interesting that some retail 'investors' have tried to pinpoint an actual price to take profit on GME. Rumors have flown around about the cause of the pump, with the firing of
GME
CFO being the #1 theory. While no one knows for sure, all of us can be sure of one thing -- retail investors didn't cause the pump, whales did. The "Hot" stocks, including GME, AMC, EXPR, and BB, were all lit up at the same time around 2:30pm. This is not our game -- unless WSB can muster the same collective buying force that was displayed on their first "pump", this is the whale's game, and retail investors are just a small frog in a large pond. There is no way to set a definitive TP for an unpredictable stock like GME. The 'Math'
According to past trends, the second wave of a pump tends to hover around 60-70% of the ATH. This aligns closely with the Fibonacci Retracement level of 0.618. We can see here that GME hit resistance around $330 and was rejected several times, making this the ideal price to take profit at. In addition, the bullish volume of the pump did not show very strong signs of resistance.
Fin
I saw a few "analyses" along the lines of that 'Math' being shared in communities. Though that's not the actual math -- that's my own, using the same logic. I'm by no means a professional trader, but you don't need to be an institutional investor or a full-time day trader to realize how absurd the reasoning behind setting a TP for such an unpredictable stock would be. GME is a prime example of "get rich quick or die trying" -- in my personal opinion, if you're going to insist on riding it to the moon, take percentage profits as you go -- that way, when GME or any of the other "hot" stocks suddenly starts following Newton's third law, you won't curse yourself for not taking a profit. And no, GME is not the next Bitcoin -- there are a large number of reasons that should be abundantly clear.
We'll see how accurate the 'math' is. Sadly, I will not be riding GME 🚀🌙. On the bright side, tomorrow is my birthday, so there'll be an abundance of Discord server drama and fresh entertainment from the WSB subreddit.
Remember -- any profit is better than no profit. Ciao!
Comment:
My "analysis" may have been right, after all. Candle high of 347; my target was 330.