This is a risky strategy but as a risky investor, I think is good to point out that GameStop did his 3rd floor and I am able to say that I entered at a price of 4.6. Appart from that, the price is way below 100 and 200 MA and it has a lot of upside potential.
STRATEGY
Long until 0.618 fibbo targeting 40+USD Stop around 2.5 USD 5% positioning This is a reversal trend trade, it will take long until one is able to see profits, please, stay away if you are conservative type. Investment horizon 4years.
Have a good one for me and always remember that I am no financial advisor neither I pretend to be,
BeniGo
Trade closed manually
⋅
Dear Gamblers,
I closed this trade yesterday. The reasons are mostly the coronavirus sell off. Think in the other way around, a major sell off which is probably to occur, will cause panic sells around the globe and the stocks that will get the punch harder will be smallcaps + the losses that could derivate from that would be hard to achieve in the near future and i don't want to get stuck in one stock that needs a structural business change in order to survive.
We will have better chances to long small caps after, now i think the worse is yet to come.
I don't know what gamestop is good for other than console releases and gaming paraphernalia. I can buy all of my games in the online store ps4/xbox/steam/origin/etc. Can anyone make a solid case for why GameStop should even exist? They really only offer items at a markup that you can get online.
PlutoNix
⋅
@ThaDocta, yea thats why im shorting them rn. They don't do anything that someone else doesn't already do but better. They've also been having issues and many stores are beginning to close.
biplav32
⋅
corona isn't affecting gme. Could be interesting play or maybe Burry is buying it to keep it afloat.
BeniGo
⋅
@biplav32, maybe corona isn't but it's not safe to trade a small cap with structural business problems on a global crysis. So i left before it was too late. Maybe is the only one that is not affected by the coronavirus, but let me doubt the physical sales will be so awesome in the following weeks to back this uppside potential.
PickleLiq
⋅
Sir I think you closed too early :(
BeniGo
⋅
@PickleLiq, Well it's just one month after, time will tell.
ThaDocta
⋅
@BeniGo, it's a gamble either way IV is way up today so options market is pricing in a big move.