I definitely learned a lot from the $13.00 entry on my previous $AMD trade - I need to wait for better entries instead of hoping I’m buying into a bottom and it spiking. I got a better entry on this by picking the bottom using technical analysis after a huge drop.
I was right that day and it spiked up to $12.45. I didn’t sell because I wasn’t watching the stock at the time and I also wanted more from it. So, I waited a couple more days and made a decent profit by selling into $12.55. I could have been a little more patient and gotten $12.60 or $12.62 but that’s only 5c more.
- $12.30 entry
- $12.55 exit (25c)
- 170 shares
- $42 before commissions (~$32 after)
Here you can see the candle I exited on. It was certainly risky waiting for a spike like that after a crack. If I didn’t get a spike like that to sell into I would have waited another week.
I use this stock for practice because it’s the first stock I made a huge profit on and I’ve always watched it. I’m also using OptionsHouse (E-Trade) so I don’t stare at the position and I’m not tempted to sell. It’s also a smaller account (also it’s a cash account) than my Interactive Brokers account so I go all in. I guess it’s risky but this stock currently trades between $12.00 and $13.50. As long as you get in near the lower end it’s not too risky.
I never felt worried after the dip buy. A little excitement since I did place a trade and thinking I could be right on the bottom but no panic or anything like that.
I am not a registered financial adviser/broker/anything. Use this information for entertainment/informational purposes only. Any tickers mentioned are not recommendations to buy/sell/or sell short. They are used as examples only.