[Investment Hot Topic] Nvidia plunges! 3 tips to capture the "gold mine"!

Last night (September 3rd)$NVIDIA (NVDA.US)$ Fell more than 9%! This may reflect that Nvidia's performance did not meet the high expectations of the market, and Nvidia may be "digesting the troubles of growth."

Under such a sharp decline, there may be a "golden opportunity".How to seize the "golden opportunity"What about it?Taking Nvidia as an example, Sir Mooer shares directly with everyone3 useful tips.！

1. "Those lines" that indicate buying opportunities.

At the end of July, the market experienced a large decline, and NVIDIA was no exception.

Through Fibonacci retracement lines, the 38.20% ($102 approx.) and 50% ($90 approx.) levels are important observation points. If the stock price can stabilize at these positions, it may be a buying opportunity.

In the subsequent trend, it can be seen that NVIDIA's stock price briefly dropped to around $90 during the market downturn on August 5th, and then quickly rebounded. Later, it quickly bounced back after stabilizing around $102.

In this way, it seems that this indicator indeed successfully predicted two buying opportunities for NVIDIA. However, this indicator itself also has many limitations, such as how to deploy the starting and ending points of these lines, which has a strong subjectivity. Everyone should not rely too much on it.

2. "Those points" that indicate buying opportunities.

There are also some points that may indicate buying opportunities, which are related to the SAR indicator, which are those discrete points next to the trend line in the figure below. When the SAR point switches from above the candlestick to below it, it may mean that the stock price will change from a downtrend to an uptrend, which may be a buying opportunity. Conversely, switching from below to above indicates the opposite.

From the Nvidia's trend line and SAR, we can see that there were switches from above to below on April 26th and August 12th. After these switches, the stock price did indeed show an uptrend.

However, this indicator has a certain lag and is more effective when the trend is obvious. In actual investment, it is best to combine it with more fundamentals, capital aspects, and technical indicators.

3. "Options Strategy" that provides double protection for buying opportunities

When you identify a potential buying opportunity, you may hesitate and worry about what to do if you judge it incorrectly when entering the market directly. At this time, you can consider using the options strategy commonly used by Warren Buffett:Cash-Secured Put Option。

Assuming nvidia is currently in a downtrend, with the current stock price at $108, if you think the lowest price in the near future may drop to $100 and want to buy low at this price, then you can sell a Put option with a strike price of $100, while holding enough cash in the account, ready to buy the underlying stock.

What will happen in the end?If the stock price falls below $100, your options will be exercised, and you will successfully buy low as planned. If the stock price is above $100, then you can also earn the premium.

Alright, the 3 tips about buying low are shared here today. Here are also some recommended extended readings:"Can't see the trend clearly? No profit target? Fibonacci trend extension lines, a move to break the deadlock!"，"SAR Indicator: A versatile indicator that combines offense and defense, a necessary tool for stop-loss."，"Cash-Secured Put Cash-secured put options"。

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