A trader breaks down a short trade on Super Micro Computer (SMCI) that followed NVIDIA's breakout, walking through the chart setup, entry timing, and position sizing. The trade made $50,000 profit despite underperforming expectations, showing how to read momentum and manage a short entry.
This is a setup where I underperformed and still made $50,000. SMCI had a big, big, big breakout when NVIDIA started breaking out. You could see extension, extension, extension, extension, and then it really started to go parabolic over here. These red days that it's having here are kind of consolidation. So it's creating consolidation days versus extension, extension, extension. And then what we saw here is now that 3 days, 1, 2, 3. How did I trade this? You could see here this day that it finally gapped up. It gapped up and starts to wash out. It starts to create a trend. And what I I want to do is if I do have a little bit of FOMO, I'll take a small piece. So this arrow here, my first primary short entry, this dotted line is the previous day's close. I got in a little bit early. I waited for it to break the low of the day. It set its range. So now we're watching the stock. So it went red. What did I do? I added to my position there.
