Let's say you purchased 100 shares of Nvidia before the earnings announcement at $90 each (assuming an exchange rate of 150 yen).
① Realizing profits at $140 from $90 results in a post-tax profit of +0.52 million.
② Reinvesting at the $90 price point after a drop from $140 is equivalent to the purchase cost in ①. Further profits are made if it drops below $90.
③ And then it rises...
From the mentioned scenarios of ↗️↘️↗️, it is evident that realizing profits ➡️ reinvesting yields a significantly higher profit compared to holders who do nothing. This results in +5.2 million with 1,000 shares. How do you perceive this? And both strategies remain consistent with a long-term holding stance. Therefore, realizing profits ➡️ reinvesting completely avoids the risk of deep adjustments along the way.
Beginner investors🔰 or those new to trading may just be happy or worried when hitting high or experiencing major declines, but successful investors open the trading screen during significant price movements and set limit orders. For example, when N recently hit $140, how many on moomoo took that approach? (I intended to adopt the approach but let my guard down. This was because I didn’t expect such a market condition to arise)
This is what I meant by reflecting on my previous post. It also applies to when Super Micro hit a high of $1014 not long ago. And then, at the end of August, Nvidia...