Big Loss Today Overtrading Tesla
Dear Traders,
I am in Berlin, for the first time, writing this newsletter to you. Berlin is a really beautiful city and I have enjoyed my last 24 hours here. It has so much history, and even though it was literally destroyed in 1945 during WW2’s Battle of Berlin, it was rebuilt so nicely that I can still feel the old culture.
Germany is truly an interesting nation. Their engineering expertise, and their ambition, have always inspired me. When I was working on my Bachelor’s degree in Chemical Engineering, all of our textbooks on oil and gas, as well as chemical processes, were written by German scientists and engineers back in the 1850s. They did not have any oil and gas in those days, but they were pioneering many of the engineering processes that are used today.
Everyone speaks English here, and the city has beautiful architecture, rivers in the middle of the town, great food, and an excellent EDM and nightlife scene.
We are hosting a big meetup this Saturday, March 23, at 8pm. I am excited to see our traders. We have over 25 people signed up! I did not know we had that many traders here!
On Monday, March 25, we are hosting another big meetup, this time in Prague. I have never before been to Prague either, but I have heard that it is also a beautiful city. RSVP here if you can make it!
This past week, trading was amazing. The Reddit IPO was volatile, Apple got sued extensively by the US government regarding its antitrust and predatory behavior, the market reached another all-time high, and its volatility continued.
I traded LULU nicely today but unfortunately ended up with a big loss because of overtrading on TSLA. This happened to be one of the biggest losses of my trading year (around $25,000 lost in one day). But, I think, the lessons I learned on how to manage risk and conduct R:R analysis on LULU and TSLA are worth watching.
You can watch my recap here and, please, let me know what you think. I would also appreciate it if you would subscribe to our channel and help us get to 100,000 YouTube subscribers.
The Peak Capital Trading bootcamp is ending soon. Several traders have been very successful and profited greatly in this round. Avi held several wonderful live trading sessions on day trading options for our Peak Capital Trading traders. Here’s a picture that he posted:
We offer a very comprehensive program for traders who join our bootcamp, and I hope you will join us for the next round.
We have about 30 spots left, so if you are considering joining us, now is the time. The next bootcamp starts on May 5, and all bootcamp registrants are invited to our Vancouver office reception in April during our meetup.
Last, but not least, how high can NVDA go? Is it really a bubble?
I recently read on Bloomberg that no, it is not a bubble. The artificial intelligence rally of NVDA is far from over, and multiples “are very reasonable right now”. NVDA used to trade at a much higher valuation in the past 10 years, so there is still room for growth.
A crucial difference with the current rally as compared to the dot-com bubble is backing from real corporate profits, rather than pure valuation expansion. Nvidia, for example, is trading at about 35 times forward earnings, down from a peak of around 70 in 2021.
Accordingly, people who call NVDA overvalued and a bubble, might have a hard time shorting this stock.
To your success,
Andrew
