Stock Market

The Truth About Stock Market Guessing Games


Nvidia (NASDAQ: NVDA) reports earnings today after the market closes.

Free Watchlist: The Biggest Moves of the Day Happen After the Market Closes

Traders from Wall Street to Main Street are watching because Nvidia is the world’s most valuable company. It’s also arguably the most important player in the AI trade. So, I wasn’t surprised when I got this question on Sunday…

“How do you see NVDA impacting tech on Thursday?”

The Big Picture

What’s going to happen with Nvidia? I don’t know.

Now, I would expect good news out of Nvidia, but we don’t anticipate. In fact, this is kinda fundamental to what we talk about regularly.

This isn’t the first time someone has asked me this kind of question, and I don’t expect it will be the last. But it got me thinking…

For the record, we need to put this focus on guessing games to rest. So many people have this great desire to play guessing games.

It doesn’t work.

If you’ve been trading for a while and you do the work, I’m not talking about you. But I find that most people need to hear this.

There Is an Obsession With Guessing Games

My thing is, see how Nvidia reacts and then trade the patterns.

I think people get sick of that answer. A lot of people really do not like that answer.

They want me to say “Nvidia is going to $1,000” or something like that.

The truth is, I don’t know what’s going to happen when Nvidia announces earnings tomorrow. Anyone that tells you they know what NVDA is going to do…

They’re guessing. That’s all they’re doing.

Trade a Pattern

When you trade a pattern, you know what’s a good entry. All of my patterns have built-in stop losses. So, if a stock doesn’t react the way you anticipated, you know where to get out.

Again, if anyone says “I know what Nvidia is going to do,” roll your eyes, okay?

Now, they might be right, but it’s still just a 50-50 chance. It doesn’t matter whether they say “it’s going up” or “it’s going down.” You might as well flip a coin.

My Take

Whether it be a penny stock or a real stock, trade the patterns. Try to avoid playing guessing games. I believe the obsession with guessing games is the big reason why 90% of people fail at trading.

Watchlist

Former runner Autonomix Medical, Inc. (NASDAQ: AMIX) ran after hours on Monday (August 24) on fake patent news. The company also announced an offering later in after-hours trading. In other words, it was a pump-and-dump.

For what it’s worth, it took less than five minutes to figure out that it was an orchestrated pump. A word of caution, because even though this is nothing new, it still happens…

The headline below was circulating on social media. On one Reddit thread, there was a screenshot that looked like a legit report from a legit website. It was 100% fake.

Fake Headline: ‘Autonomix Medical will be granted U.S. Patent No. 12,714,780 tomorrow (August 25, 2026), titled “Systems and Methods for Regulating Organ and/or Tumor Growth Rates, Function, and/or Development.”’

Now, this is an example of why we trade patterns, not stocks.

Most of these companies need to raise cash to survive. So, don’t believe the BS. Make a trade plan and follow the plan.

Regardless of why AMIX ran, it set up for a beauty morning fader yesterday:

AMIX, 8/24/26 4PM ET – 8/25/26 premarket, 5-min candles, morning fader

AMIX, 8/24/26 4PM ET – 8/25/26 premarket, 5-min candles, morning fader

Now, I consider 4PM the start of the next trading day. From that perspective, it’s easy to see the fade pattern from Monday’s after-hours highs.

How you could have traded AMIX using the morning fader pattern:

  • Risk is the opening candle low ($7.38)
  • The Oracle buy signal was $8.29
  • AMIX had a clean 20% of upside from the buy signal before pulling back

Fake news, no new patent, and an offering… Everything going against it and AMIX was still a great trade opportunity. Trade ‘em, don’t date ‘em.

On My Radar



Source link

Leave a Response