If you followed my trades today you saw a trade alert on 9:38am for RAMS when I sold 1/3 of the position for $1.04. How possible was it if RAMS was traded for 70-75 cents that moment? RAMS opened 0.73 and closed 0.80 today.
Well, look carefully at this graph (above) It's a snapshot from my screen I took about 1pm today. Do you see a long shadow on top of one candle in the morning? It goes as high as $1.10. How I was able to catch it? Easy! Don't be greedy, use sell limit orders. My entry for RAMS for $0.69 if I remember correctly. I just added 50% and got $1.04. Same day I bought RAMS, same day I placed a limit sell order for 50% premium. Why 50%? There is no clear rule. I mentioned in my strategy that 30-50% is what we are looking for partial gain booking. When I place those orders I also check most obvious support/resistance levels, so it could be more or less than exact 30% or 50%.
When markets are volatile like today or like we saw during the last day of September, its very likely that some buyers (or robots) do "stupid" things. Why not to use this opportunity? Sometimes these kind of sell limits make you feel happy, sometimes not much. For example, on September 30th I sold AEHR, you remember, for $1.59. Whole day it was in $1.20-1.30 range but I sold it for $1.59 just before the market close. It reached $1.65 seconds before the close. Next morning AEHR dropped back to $1.20. But CPRX for example I sold for $1.10 and next day it went as high as $1.62.
You never know, how it turns out, but 30% or 50% profit is still not bad result :)
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