#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. Last night’s big drop in the US stock market caused my account assets to shrink by over 10%. Although it’s not a big loss in the derivatives market, for a spot account, it’s quite “hurtful,” since the funds used are substantial. It wasn’t until today that I slowly 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 “too old to 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, you can’t buy back your health with money). 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 used 50% of my funds to trade US stocks, while the remaining 50% is still in the crypto space, waiting for Bitcoin to dip for a bottom (getting a bit 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, this has become ingrained. 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 the 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 and my subconscious that small spot losses are manageable led me to go all-in with 50% of my position—this move was deadly.

3. Bought stocks without thorough research: In a bull market, I had the illusion that “buying equals earning,” so I bought without careful research. My holding in Marvell Technology was just because I saw Huang Renxun mention it in a news article; I 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. I had no allocation to defensive sectors like finance and healthcare, which led 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. Last night’s decline was mainly due to CPI data hitting a new high for the year, raising expectations of interest rate hikes, combined with some AI tech companies’ earnings missing expectations. The basic condition for AI tech stocks to run—rapid development of AI driving demand for computing power, chips, storage—has not changed. So I believe the current AI tech bull market is not over yet. There’s only one trading day left this week, and I expect that after some adjustment tonight, AI stocks might rebound strongly. Those with heavy positions should seize this rare “escape opportunity.”

My trading plan:

1. Set stop-loss: Since losses are already significant, sticking to the original 6-8% stop-loss no longer makes sense. The market has already gone through a correction, and cutting losses at current prices might just chase the rally. I plan to adopt a special stop-loss strategy—cut at a total portfolio loss of 25%. Based on this target, I will derive individual stock stop-loss levels inversely according to their position sizes. This leaves some room for further correction and prevents black swan events from causing catastrophic losses.

2. Use rebounds to reduce positions: My current position is “overweight,” approaching “heavy load and aggressive action” 😂. If a rebound occurs, I plan to reduce total holdings to around 30%, mainly by liquidating Marvell Technology and trimming Microsoft.

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? Share your review in the comments. Wishing everyone a turnaround and 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.”