Trying to profit on the falling knives (oversold stocks & huge pullbacks).
Friday, December 7, 2012
Trade of the day, AMRN!!!
The picture above is AMRN year to day daily chart. It had a nice support level around 9.50 a share, so right before the open, I put a limit order to buy 1000 shares at 9.50 and got filled within 21 seconds. I knew this might work because it only had a low of 9.42 during pre-market trading this morning.
This stock was acting very erratically the first hour of trading, but when it started to somewhat consolidate a bit, I placed my second stop at 9.49 and decided to hold on until it either got to my profit of at least 9.95 or 5 minutes before the closing bell. Well as you can see on the picture above at the green arrow, I had to wait 5 minutes before the close to sell, and sold it at 9.69 for a .19 point gain. I thought I might get a short squeeze covering rally at the end, but it never materialized.
Have a great weekend! If you want to see what I might be trading during market hours and interact with me during my trading days, just follow me on stocktwits or twitter @tradermike9.