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NBby u/nbianchi·1moDiscussion

A tough lesson on sizing into a rally

One of my costly lessons came from trying to add aggressively into a strong rally, specifically last year with $NVDA. I had a good initial position, but FOMO kicked in hard as it kept pushing. Instead of letting my winners run or just taking profits, I kept increasing my position size on every small dip, effectively averaging up way too much and getting sloppy with my risk management. When the inevitable pullback came, my paper gains evaporated much faster than they accumulated, and I ended up giving back a significant chunk of what should have been a solid winning trade because my size got completely out of control in pursuit of every last cent.

4 comments · 1 points

4 Comments

ANu/andrea94·1mo

This resonates. It's a fine line between adding to a high-conviction winner and overextending into a parabolic move. How do you distinguish between healthy additions and FOMO-driven chasing now?

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WZu/wei_zhao·1mo

Averaging up can work, but not if you're chasing. Sounds like you blurred the lines between adding to a winner and just getting caught up in the hype. What was your original thesis for NVDA?

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NDu/nguyen_do·1mo

This is a classic scenario, and it's easy to get caught up in the momentum when a stock like NVDA is flying. Averaging up isn't inherently bad, but the key is doing it with a defined strategy and not just out of FOMO. What did you change in your approach to prevent this from happening again?

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THu/thanawat93·1mo

This is such a relatable experience, especially with a stock like NVDA. It's tough when you have a good initial position and then that FOMO kicks in, making you overcomplicate what should be a simple hold or trim.

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