This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
Well, here’s how my “overnighter” in Onstream Media Corp (NASDAQ: ONSM) turned out:
Bought 20 @ $3.24, sold 20 @ $3.30, P/L=$1.20.
Here’s my analysis: My buy point was too high. I should have waited until today and bought near the $3.00 floor. Holding overnight was a SIRIously flawed plan. ;-) I am happy with my read of this morning’s price action though, and my decision to stay in through the first pullback after the breakout. I watched Level II during all of this, but I can’t really make heads or tails of it. It seems like the price moves towards the big size, rather than the sizes moving the price. Anybody have any LII comments?
Anyway, this turned out to be a Rumsfeld play: I had no exit strategy. I had no profit-taking target other than “the most I can get”, so I was doomed to get taken out by a stop of some sort. If my buy point was lower I would have had more margin to play with, but after the $3.40 support failed, I sold at market so I wouldn’t get stuck with a loss. Any insights or tips on exits for this trade are requested!
So while it’s no $8000/day, at least I was net profitable and I’m learning more all the time. I love this game!!
This trade brought to you in part by Zecco Trading, helping undercapitalized n00bs learn the ropes since 2006.
Yeah I have a comment about Level II…. I can’t make heads or tails of it either. I’ve done some reading on it and while yes, the little yellow bars squeezing one side or the other does kinda show pressure on that side, that’s in the moment. I can’t tell what’s below it on either side as crap keeps appearing and disappearing.
I rode XING today for two short sale plays. I’ve had 2 good days in a row, which is bound to end next Tuesday….
I watched ONSM most of the day and it was a little wild for me so stayed out of it; considered getting in during the free-fall around 1:30, but since the 52 week low 11 cents, figured there was no real way to tell where the bottom was. I see it advanced back pretty nice.
It was worth it just to have you be able to write:
“this turned out to be a Rumsfeld play: I had no exit strategy”
Hilarious. Happy Holidays all.