Remember the old saying,
"In Gap Up We Trust"?
Well, that's what happened here.
February 23, $MRC went on to seal the deal. Yup. A ceiling play on Friday.
A trending stock. All eyes were at this one. For a tsupita play, this one was an opportunity we can't miss.
Enter February 26, I was watching the pre-opening of the market. Yeah. For like 20 minutes I knew that it's gonna explode at the open.
And so it did.
I forgot what was my bid price but I'm sure I got the first trade. (evil laugh).
Transaction
Okay. Yeah, I may not be the first one to make a trade that day but who cares? I got in. 43 seconds after the opening bell!
There is only one simple rule in this trade:
"Get in fast. Get out faster."
Whenever I do day trades, I'll stick to day trade. I have to get out that day. Whatever the result was.
Lucky enough, just before lunch break, I was out. My trigger? Momentum. Somehow, I felt that the price wasn't pushing thru. So I got out. No big deal.
The high of that day was 0.83 for $MRC.
I gained 20% out of that trade. More or less.
I never really considered what will happen the next day or the day after that. All I was thinking was,
"I made grocery money!".
Of course, stock behavior like this one should be monitored. After the trade, I added this on my watchlist. Lucky enough I was able to make another winning trade out of this one.
But that story is for another post. :)
WARNING:
Not all trending stocks which closed on ceiling prices have a 100% chance of gapping up.It may have happend to $MRC, but that doesn't mean that it will happen to all stocks.
Stick to your plan. Manage your risks. The reason I was confident in this trade was because of the liquidity. I know that if I was wrong, I can get out immediately. If I didn't see that, I'd probably ended up sleeping that day.
-tpt
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