GameStop is back from the ashes. For how long this time? We do not know. But one thing for sure is - You need to have a game plan tomorrow.
Back in January, we saw how GME can bring emotionally-prepared people who know what they are doing to the literal moon. But we also saw how people who FOMO in their life savings blindly and emotionally without a plan had to call suicide hotlines during the aftermath.
No doubt, tomorrow will likely be a bloody battlefield that can either bring you lots of tendies if played right, but it can also financially ruin you if you YOLO in all your money without a game plan and your paper hand GME once it goes in a direction that you weren't expecting.
So, ask yourself,
What risk do you see tomorrow? What are the possible scenarios that you see playing out? What are your plans to deal with them? Do you see high risk of GME suspending? Huge downside risk? High spreads? How much are you planning to risk? How much are you okay with losing? Do you have a profit target? Are you planning to trade actively or diamond hand it? Measure both the upside potential and the downside potential. Have a bear case and bull case in your mind, and create a plan for them.
But most importantly, do you like the stock?
TLDR; Have a plan, stick to it, and be prepared emotionally and financially.
My target is $250.00 with a strict 1:1 R/R depending on where I enter. Please set SL based on your own risk tolerance.
This is not investment advice so please do your own due diligence! Support this idea with likes and share your thoughts below.
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I personally think for a $250 price target, between $113 to $160 will be a decent price to get into this trade. Any higher and a 1:1 R/R would no longer make sense as the stop-loss would be in a weird area that will likely be obliterated easily unless you take on more risk or increase your price target.
Also, there is absolutely no rush to FOMO and get into this stock. I expect huge fluctuations tomorrow, so there should be a lot of opportunities to get in at various price point.
Even if you didn't manage to get into a GME at your preferred price point in the end and get left on the sidelines. No shame in that either. What matters is you had a plan and you executed it. Sleep well knowing that you played this situation to the best of your abilities.
Again, this is not investment advice so please do your own due diligence.
Trade active
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Mid-day update: Took a position from $123.10 to $146.00 during the m1 ascending triangle breakout for a gain of +18.6%. $132.82 looking to be a very strong area of resistance currently, but if we are able to break it and hold above, we will revisit the $150 zone again, and subsequently the $170 area.
I am currently looking for a formation of chart pattern to establish a new entry point and a directional bias.
Thank you for bringing some rational thought to this situation. I wish I had some skin to put in the game but honestly. I think I have to sit this one out. I've been trying to derisk quite a bit.
Unless, some insane momentum happens in the AM then I might just have to put on my space suit, look to the sky, and get ready to land on Mars.
I'm pretty sure the latter is going to happen. In which case I have a bit to lose, 1-2% portfolio.
AntrePoint
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@Anon619, Thank you for your kind words. This is definitely a play that should only involve fun money you are willing to lose. No harm in sitting it out as it is equally entertaining to watch from the sideline with a beer in your hands. I am personally also entering only if I can find a preferred entry point with my poker money, no serious damage to my portfolio if I lose it either.
AntrePoint
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@ArtfulDodger1974, Respectfully, my view on GME is that it is a momentum play. I believe that if the positive sentiment we have today carries on to tomorrow, hitting $250.00 at one point is a no-brainer. But like I say, trade your own plan. If your plan is to stay on the sideline, it is entirely your choice and I encourage it. I am simply recommending for people to make a rational decision and to not FOMO in emotionally to protect their own interest.
HabitualLineStepper_
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@ArtfulDodger1974, The MACD is about to cross on the daily though...