Trading Lenovo and NIO - a simple strategy based on recurring price levels
Based on my experience over the past two years, trading shares of Lenovo Group Limited $0992.HK and NIO Inc. $NIO has proven relatively straightforward for me. For Lenovo, I’ve found it effective to buy below $9 and sell above $10, while for NIO I buy below $4.60 and sell above $5.60.
I have successfully executed each of these strategies twice already. I currently hold Lenovo purchased at $8.92 (January 2026) and NIO at $4.62 (January 2026). If the price exceeds the target level by roughly 10%, I set a trailing stop-loss based on the original target price to protect gains while allowing for further upside. This approach has worked very well so far. The main risk would be a prolonged downtrend, where an investor repeatedly buys a falling asset (“catching a falling knife”).
Why this strategy works for Lenovo:
Strong technical support around $9: The stock repeatedly bounces from this level, supported by a relatively low valuation and cyclical demand for PC and server infrastructure refreshes.
Quick upward moves above $10: Demand for AI servers and a broader tech-sector recovery often produce short-term gains of 10–15%.
Why this strategy works for NIO:
Support around $4.60: The high volatility in the electric vehicle sector creates repeated buying opportunities, with technological innovations and rising deliveries acting as catalysts.
Moves toward $5.60 and above: Positive news from the Chinese economy, stimulus measures, or better-than-expected results can lead to relatively rapid gains of tens of percent.
This approach fits my conservative strategy — disciplined entries and exits even with more volatile stocks can deliver steady returns if the investor follows clearly defined risk-management rules.
What do you think of this strategy? Does it make sense to use recurring price bands, or do you think it’s too risky? Do you have similar positions in other stocks?
An English version of this post is available on my profile at www.etoro.com. If you’d like to follow me there or possibly copy my USD portfolio, I’d really appreciate it.
Interesting strategy, but I wouldn’t call it a conservative approach—trading is risky and it doesn’t always work out. Do you think that will ever change for NIO and that they’ll finally start to grow?
How do you execute these trades? Through regular stocks—so with larger volumes—or using other instruments?
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And on the Prague Stock Exchange they used to say: "If Erste is cheaper than KoBa, it's a sure buy." And it used to work... Where have those days gone?