Guest Post: ExEngineer Trade: Closing Out ONSM, 12/22/2006
Posted on December 22nd, 2006
Written by Prospectus
Posted in: N/A (old archives)
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.
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© 2010 Richard Todd. I am not a financial advisor, and nothing on the site should be considered investment advice or actionable recommendations. I'm just an individual, saying what I think, and sharing my experiences.