Friday, March 19, 2010

SOMX- Crazy Ride but Ended Well

So I broke my plan already. However, the trade did turn out well, very well.

I bought SOMX yesterday at around 12:55 PM Pacific time, 5 minutes before the close. I bought in at $9.20. I watched the stock move nicely; eventually hitting $10 which was a good time to sell for a number of reasons. One reason is that 10$ is a whole number and any time a stock approaches a whole number, it's a very cautious point. Second reason is I had about 30 seconds before the market closed and I wanted out. I really dislike holding stocks over night.

I went about setting up my order to sell at $10 and hit the preview before finally submitting my "final answer". For whatever reason, I don't know why, I never hit the submit order button right after the preview stage and ended up holding the position overnight. A definitely scary situation considering the stock fell all the way back to $9.20 after hours, wiping out all my paper gains. I immediately put in a limit order after hours at $9.10, .10 cents below my buy price. A tight stop price, indeed, but I wanted to limit the loss from my stupid mistake in case the stock decided to sell off at the open, I'd be out.

In the end, I was forced to hold the stock over night. The next morning I was watching pre-market to get an idea of what it was doing and was surprised to see it bouncing between 9.30-9.40. What was amazing was watching the stock jump .35 cents in 1 second immediately at the open. Before I knew it the stock hit $10.35, fell a bit and I hit the sell button and bailed out right at $10, which is the price I wanted out in the first place. A great end to a bumpy night; a 7.14% return!

The chart below is 2 days worth of intra-day data on 10 minute interval candles. The red and green lines roughly represent my entry and exit points.

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