As some of you remember, today was an overwhelming quiet day
as the market had gaped up due to BREMAIN rumors. Not
the best day to trade as I’ve learned over time. So in the
lull of the morning I was perusing charts and noticed one
in particular at 10:05am, ZAIS, that was up about 32% on
about 54,000 in volume on no news. Now ZAIS was trading
at $3.60 back in April and had a low this morning of $1.36
on average volume between 2k and 14k. I normally don’t trade
stocks with only 54k in volume but I thought something
must be up with it being up in volume and price. I called
my buy at $1.88 to the chat room, watched and waited.
I normally scalp 10 cents plus on slow days but the volume
kept increasing as I watched it bounce between $1.80 and
$2.06. Then around 12:15p, it broke out of its consolidation
and hit a high of $2.35. I thought to myself, hey, I could
easily make almost a grand here, so I sold at $2.24.
I hear so many in the chat room asking constantly, “Are
you still holding?” When are you going to sell?”
I guess I will have to say this until I’m blue in the face….
selling is a personal decision and you have to follow
your goals and trust your gut on when to take profits.
If I had told you to sell at $2.24 wouldn’t you be really
ticked off at me?
As we all know now, the stock went from my call at $1.88
all the way to $4.63, an increase of 246% on over 6.5M in
volume. Did I sell way to early? Absolutely. But as most
of you know, I only like to trade the first two hours of the
morning and I already had close to $1,000 locked up.
So, even on the most boring days, you just never know when
the next whale trade will hit. And ZAIS certainly can be labeled
and filed in the whale category! Under my trading system, it
is much better to sit on your hands and wait for the perfect
trading opportunity than to always having to be in something
just to be trading. I know that’s hard for a lot to accept, but
if you learn that rule you will eventually make a lot of money.
Now, please. Quit asking me if I’m still holding or when I
plan to sell! I will keep supplying the ideas but it’s totally
up to you to determine your exit strategy.