Share my successful take-profit trades and my trading mindset; we can exchange ideas and learn from each other.
1: Trading logic: This trade was made before SanDisk released its earnings report. I believed that the report would most likely be a negative surprise. His Q3 performance was far above expectations due to AI, which drove the stock straight up to around 2300. For Q4, the results were likely to be around expectations. As long as there was no negative surprise or no significant beat that exceeded expectations, the stock would likely drop. The stock is basically trading on forward-looking expectations and imagination; once those expectations fade, it can’t hold up the current valuation. Combined with the stock price being around the 1400 resistance level, and the fact that large institutions generally have relatively low costs, they would definitely be looking to exit (or “run away”) from the position.
1: Trading logic: This trade was made before SanDisk released its earnings report. I believed that the report would most likely be a negative surprise. His Q3 performance was far above expectations due to AI, which drove the stock straight up to around 2300. For Q4, the results were likely to be around expectations. As long as there was no negative surprise or no significant beat that exceeded expectations, the stock would likely drop. The stock is basically trading on forward-looking expectations and imagination; once those expectations fade, it can’t hold up the current valuation. Combined with the stock price being around the 1400 resistance level, and the fact that large institutions generally have relatively low costs, they would definitely be looking to exit (or “run away”) from the position.
