This month killed almost all AI related stocks, both upstream and downstream. Almost like bubble burst when fears of AI overvaluation exploded worldwide. Fortunately, confidence managed to hold, thanks to "blowout" results by Microsoft.
Took up an opportunity to trial "cut n reduce" method. Used AEM. At first it looked okay, netted around $200+ in profit. But strategy not resilient enough for the semicon plunge. from a high of $10+ down down down to $7. almost 30% drop. Too fast that my cut n reduce could not keep up..
Analysing my strategy, realised I am too hesitant. At 9.4X I could have exited with mere dollars in total losses but I tried my luck and pushed my TP at 9.50. And it u-turned, and dived to a point of no return. 9.00, 8.50, 8, 7.50... and all I could handle is to cut 100 shares at price X and re-enter at price Y. Well averaged down a bit but costed me $400 in realised losses. Plus up to 2k more unrealised loss.
But somehow the SGBBT group could pull it off, I suspect it is the same strategy, just more exit positions, and act promptly when price is right. I might guess there are several positions laid out before market open, and knowing the stock would be "range-bound", can definitely land on a lower price for buy back.
And scaredly me, could have exited more at 8.5 and re-enter at 8.1, that would have reduced my loss by at least $400, but... oh wells. not emotionally strong enough to handle this roller coaster of trades. even near closing I could have re-entered at 8.2 but hesitated.
Anyway, I am pretty much banking on the sentiment, will AI continue to be that resilient, or will that confidence give way? will the bull track find an end? Am I able to offload my cart before reaching the end?
Just food for thought.
Update #56:
