Namaste!
Nvidia was one of the stocks which benefited hugely by the AI (Artificial Intelligence) boom.
It corrected around 68% from its all time high during October 2022. Looking back at that time, I thought it as some serious happening because Meta was down around 76%, Netflix 77%, Tesla 72%, Amazon 55%, etc.
I knew these were a good buys and probably sold at 100 or 200% gain. Off course I couldn't buy because I am Indian and trading in US markets is complicated.
But now, I think it is time to book the profits in Nvidia at $490.
Key reasons affecting my decision:
1. The stock is overvalued.
2. AI hype is cooling off.
3. I am expecting a recession in the year 2024.
4. My bearish Instinct.
Other things anyone can do:-
1. Sell at above mentioned prices and buy back at $347, which will result in around 30% in opportunity profit.
Remember, I have nothing to win and nothing to loose. Any gain or loss arising out of my analysis is yours. Consider your financial advisor before taking any steps.
Disclaimer: This article should not be considered as an investment or trading advice. The analysis is based on my understanding and experience in the markets. You must do your own analysis and/or consult your financial advisor before investing or trading.
Nvidia was one of the stocks which benefited hugely by the AI (Artificial Intelligence) boom.
It corrected around 68% from its all time high during October 2022. Looking back at that time, I thought it as some serious happening because Meta was down around 76%, Netflix 77%, Tesla 72%, Amazon 55%, etc.
I knew these were a good buys and probably sold at 100 or 200% gain. Off course I couldn't buy because I am Indian and trading in US markets is complicated.
But now, I think it is time to book the profits in Nvidia at $490.
Key reasons affecting my decision:
1. The stock is overvalued.
2. AI hype is cooling off.
3. I am expecting a recession in the year 2024.
4. My bearish Instinct.
Other things anyone can do:-
1. Sell at above mentioned prices and buy back at $347, which will result in around 30% in opportunity profit.
Remember, I have nothing to win and nothing to loose. Any gain or loss arising out of my analysis is yours. Consider your financial advisor before taking any steps.
Disclaimer: This article should not be considered as an investment or trading advice. The analysis is based on my understanding and experience in the markets. You must do your own analysis and/or consult your financial advisor before investing or trading.
Comment:
I expect anyone who is reading my writings to know that there is nothing "certain" in the markets. Neither the %gain on stock nor "out-performance" or "under-performance". There is a risk and opportunity cost involved in both, buying and selling. Selling at any price can often result in "opportunity loss" when the stock moves higher and higher. Human psychology is a culprit here. For e.g. I post any stock which seems undervalued or overvalued to me on tradingview. When anyone makes money on that, they wont appreciate me "a single word". But when they lose or it results in opportunity loss, they are bound to blame me. I don't criticize any person, because I know their psychology has defeated them. At last, there is nothing like "easy money" in the markets. The survival of the fittest holds absolutely true here.
Comment:
One other example of a culprit human psychology. I am short on Nifty50, so I started looking for reasons of market falling. I found that there is a pneumonia outbreak in China recently. It felt me happy because I was short on Nifty50 and it may result in falling market (correction). But, is it humane? Praying to god to make people die, just to make some money in the short position? It felt really bad after realizing this. May be that's why the god made bull markets more often and more lasting (time) than bear markets. Pessimism is short-lived whereas optimism lives longer. Optimism always wins in the long term. Take for instance a glass half-filled with water. You can't get or achieve anything seeing it half-empty. But, you surely achieve something seeing it "half-full".