Alert: Just Sends Market Lower With New Update!!!
In a Nutshell
The trader lost over $9,500 after buying Micron too early, trimming too soon on personal bias, and failing to follow the V-shaped recovery trend despite Friday's $28k gain. Key mistakes were oversized positions after a win and prioritizing personal views over market direction and momentum. SMCI dropped 9% on Taiwan raid news and Nvidia saw $47M insider selling, while Trump’s gas price tweet ignored how his Iran actions drove oil higher.
These notes were generated by AI and may contain inaccuracies.
President Trump told gas retailers to get prices down immediately or there's going to be a big problem ahead. The speaker noted agreement with Trump's earlier announcement about digital service taxes that Americans get charged but other countries do not get charged in return, viewing it as leveling the playing field. However, the speaker expressed disagreement with the gas price tweet, pointing out that oil prices rose because Trump attacked Iran, and Iran controls the Strait of Hormuz, which negatively affected oil prices. The speaker questioned whether people realize the connection or if they simply believe retailers are charging more because they can.
Gasoline retailers make a net profit of only around 3 cents to 7 cents per gallon of gasoline sold, with razor-thin margins. The speaker called out the hypocrisy of the person responsible for initiating the attack complaining about higher oil prices being charged by gasoline retailers.
Something triggered the market to pull back, possibly the tweet or escalating news, or perhaps Trump's insiders beginning to sell. The speaker observed a V-shaped recovery and regretted not staying long. The speaker bought the dip on Micron Technologies (MU), sold too early, then went short as markets continued pushing higher. MU ended up 1% in the green, nearly breaking even on the day.
Momentum and direction are the most important factors in short-term trading, regardless of personal beliefs about company fundamentals. The speaker came in with too much confidence after Friday's best day of the month, earning $28,000, and traded with too large a position size. The speaker shared the mistakes with the LP team in real time.
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