NVDA Earnings Drift Leads To Big Gains

Updated on

Last month, Nvidia Corp. (Nasdaq: NVDA), the top designer of graphics processing units, was crowned the smartest company in the world by the Massachusetts Institute of Technology (MIT).

It’s a lofty title, but Wall Street certainly seems to agree.

Get The Timeless Reading eBook in PDF

Get the entire 10-part series on Timeless Reading in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

  • These Behavioral Biases Are Driving Investor Decisions

Over the past month, the stock has climbed a meteoric 20%. And for the year, shares have seen a rapid 66.5% rise. That’s astonishing when compared to the S&P 500, which has managed a 9.73% growth rate during this year’s chapter in the Neverending Bull Market Story.

I bring this up today because this is the type of investment success that many Main Street investors are kicking themselves for missing.

But what if you didn’t have to be one of them?

As you know from my previous articles, I’m a big proponent of incorporating a proven trading system into your investment plan. (If you ever want to hear a compelling story about why, read up on the Turtle Trading experiment of the 1980s that set out to prove novice traders could bank big gains if they were trained to follow a system. Hint: The experiment succeeded.)

The trick is finding the right system that works in line with your needs, be it time limits, risk level or profit potential.

In this case, there’s a system you could have used if you wanted to quickly profit from meteoric rises in blue-chip stocks — without having to scan the headlines every day for news.

See, Nvidia saw an even quicker surge earlier in May when its earnings were released — 10%. That rise was enough to trigger a buy in the recently developed Earnings Drift Alert system, which bought the company that day. It then scored a 50% gain on half of the position in one day … and a 147% gain on the last half of the position just six days later.

Yes, that’s right — a 147% gain in seven days.

I know, the company has only made 66% this year, so that type of massive profit sounds like I’m off my rocker. But the Earnings Drift Alert system uses a basic profit-acceleration method that magnifies returns from stock movements. You can learn more about how it does that here.

In the end, it meant a triple-digit profit from a stock that moved less than 10%.

How? The system picked Nvidia because it knew the company was set up to make a big climb — way before MIT put it at the top of the smartest companies in the world.

The system, designed by analyst Chad Shoop, spent months evaluating 10 years’ worth of earnings reports and stock-price data on every stock in the S&P 500 and Nasdaq 100. Eventually, it had the data necessary to forecast significant moves in the wake of earnings reports.

So while many investors lamented over missing a 66% rise in Nvidia over about seven months, this strategy gave users a chance at a 147% gain in a week.

If you want a similar chance, you can join Earnings Drift Alert here. (Just keep in mind that you should do so soon. We’re closing this offer at midnight.)

Let me just say that this is an extreme example of what a trading system is capable of. Nothing is perfect. Still, the chance to make quick gains is something every investor wants in their pocket.

That’s why I make a point to urge you to consider pairing up with a trading system that fits your investment needs. Do your research. Find something you believe in.

Because, in the end, you want to follow a strategy you trust. After all, it goes a long way toward eroding some of the stress that comes with trading. That’s something I personally treasure.

Leave a Comment