Thursday, September 25, 2008

John Lansing and NVDA

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One of the best performance ever from [REMOVED] experts is the one of Mr. John Lansing with NVDA.
I must say things started well for Mr. Lansing. Maybe he just forgot he had NVDA in his portfolio...
Mr. lansing added NVDA to his portfolio on April 28th 2008 at $20.15 (the blue dot on the chart).
Mr. Lansing loves to talk about trends, Fibonacci retracements etc. so I suppose he is a technical trader.
Technical analysis tells a few basics like "the trend is your friend" or "stop loss orders".
So, let's suppose you bought NVDA at $20 at the end of April 2008. You should have set a stop loss order at around $18 from the beginning.
Then you should have started tracking the trend support line (red line) of NVDA price and adjust your stop loss according to the support line at least once a week.
This would have triggered an automatic sell order at the beginning of June at around $24, for a +20% for you.
John Lansing didn't. If I were one of his subscribers I would call him and ask why.
And I would also ask him why he waited for NVDA to dive from $24 to $12.75 before selling and cashing a -36.72% loss.

1 comment:

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