#我的Gate交易时刻

A gentleman hides his talents within himself, waits for the right time to act—My recent US stock trading review

The sky is falling! The sky is falling! This is the biggest feeling I had after waking up this morning. A big drop in the US stock market last night caused my account assets to shrink by over 10%. Although this isn’t a big loss in the futures market, for a spot account, it’s quite “hurtful,” since the funds used are substantial. It wasn’t until today that I gradually recovered from the depressed mood and felt it was time to review my recent operations:

1. Recent Trading Summary

In a previous article, I mentioned that I now feel “older, can’t stay up all night,” so I can’t participate in the lively T+0 intraday trading of US stocks. Instead, I analyze technically, placing limit buy and sell orders at support and resistance levels in advance, holding medium to long-term positions, and not selling until reaching target prices (you can also refer to this—don’t stay up late every day, after all, health is priceless). Because US stocks are quite volatile, my strategy is to hold spot positions without leverage, only earning within my risk tolerance. Following this approach, last Tuesday I bought four stocks on Gate: Nvidia, Microsoft, Micron Technology, and Marvell Technology. At that time, tech stocks were still soaring, and market sentiment was already FOMO. I was afraid I’d miss good prices if I hesitated, so I impulsively chased and bought at high prices without doing technical analysis or placing orders at key levels, which also contributed to my losses widening.

Moreover, because the market was booming, I was confident that the tech sector wouldn’t see a big pullback. To avoid losing chips, I didn’t set stop-losses, which was another reason for my losses.

2. Position Review

Total position: 50%, I allocated 50% of my funds to US stocks, the remaining 50% is still in the crypto space, waiting for Bitcoin to dip for a bottom-fishing (going off-topic 😀)

Position distribution:

Nvidia

Cost price: 214

Position share: 30%

Current price: 200

Loss: -5%

Micron Technology

Buy-in price: 1015

Position share: 20%

Current price: 891

Loss: -12%

Microsoft

Cost price: 441

Position share: 30%

Current price: 397

Loss: -10%

Marvell Technology

Buy-in price: 281

Position share: 20%

Current price: 251.6

Loss: -12%

3. Lessons Learned

After a day of “painful reflection,” I summarized the lessons from this week:

1. No stop-loss in trading: Risk control is always the top priority. Having experienced countless beatings in crypto, I’ve internalized this deeply. But in the stock spot market, I always think “no matter how much it drops, I won’t lose much,” and “don’t lose chips in a bull market.” When I relax my guard, I forget this, and only when my account drawdown hits 10% do I realize that “longing is a breathing pain” 😂

2. Lost calm judgment in front of FOMO, over-allocated: Besides risk control, position sizing is fundamental. The bullish market combined with my subconscious that small spot losses are acceptable led me to go all-in with 50% of my capital—this move was deadly.

3. Didn’t research thoroughly before blindly buying stocks: In a bull market, I had the illusion that “buying equals earning,” so I bought without careful research. I only bought Marvell Technology because I saw Huang Renxun mention it in a news article, did a quick Baidu search, and decided to buy. The whole process was even more reckless than my all-in on altcoins...

4. Over-concentrated holdings: Stock trading generally requires diversification to reduce risk. This time, my entire position was concentrated in overvalued AI tech stocks, with no allocation to defensive sectors like finance or healthcare, leading to huge losses when the Nasdaq collapsed.

5. No leverage used: This is the only lesson I can summarize from this operation. Given the huge swings in US stocks, if I had used leverage—even just 1x—the consequences would be unimaginable. It might not just be “crying in the toilet.”

4. Market Outlook and Trading Plan for Next Week

Finally, a forecast for next week’s market: Friday’s plunge was mainly caused by US non-farm payroll data exceeding expectations, boosting rate hike expectations, combined with some AI tech companies’ earnings missing estimates. The basic condition for AI tech stocks to run—rapid development of AI driving demand for computing power, chips, storage—remains unchanged. So I believe the current AI tech bull market isn’t over yet. In the first half of next week, there might be some digesting of negative news, and US CPI data for May will also be released. Before that, I don’t expect much market volatility. In the second half of the week, after some adjustment, AI stocks may rebound strongly. Those with heavy positions should seize this rare “escape opportunity.”

My trading plan:

1. Set stop-loss: Given the current significant losses, sticking to the original 6%-8% stop-loss no longer makes sense. Since the market has already undergone a correction, cutting losses at current prices could easily turn into chasing the rally. I plan to adopt a special stop-loss strategy—when total account loss reaches 25%, stop out. Based on this target, I will derive individual stock stop-loss levels inversely according to their position sizes. This leaves room for further correction and prevents black swan events from causing catastrophic losses.

2. Use rebounds to reduce positions: My current position is “overweight,” basically “heavy position, go all in” 😂. If a rebound occurs, I plan to cut my total position to around 30%, mainly by liquidating Marvell Technology and reducing Microsoft holdings.

3. Appropriately allocate some defensive sectors (like healthcare ETF-XLV, financial ETF-XLF) to hedge against tech volatility.

Do you think my review is thorough enough? Deep enough? How are your injuries this week? Drop a comment below and share your review. Wishing everyone a turnaround and big wealth next week! Lastly, I want to leave you with a quote: In facing the market, the priority isn’t greed but reverence. As the saying goes, “A gentleman hides his talents within himself, waits for the right time to act.”