For the last several months I’ve been thinking about getting back in the stock market. However, I soon remember why I decided to exit the stock market and to never re-enter. See “5 Reasons Why I Lost Over $300,000 in the Stock Market” to find out why. However, lately I’ve been having the bug because the stock market has made people money over the last several months.
Looking back, at around October / November 2011, is when I should have entered the market again when everyone was fleeing and financial world looked like it was coming to an end. There were so many bargains out there and I could have made a nice profit. Of course hindsight is always 20/20. No one knew what would happen. We could have entered a really bad long-term depression!
This time when I enter the market it will be short term. No more buying stocks and holding them long term. If I buy a stock and it goes up quickly, sell and grab my profits and don’t look back. This time I won’t be greedy. On the flip side, if a stock drops over a certain percentage, I’ll quickly sell it and cut my loss. No more holding a dog and hoping things will improve one day. Let’s face it, the stock market is a gamble. But it can be a calculated gamble if you use common sense and are lucky enough to get a little luck.
So I started looking around and stumbled on a stock that was hot, that I believe I could trade short term and make a little money.
The National Inflation Association has been touting this one stock, Synacor (SYNC) on their site and news letter. “Synacor, Inc. provides authentication and aggregation solutions for delivery of online content and services in the United States, the United Kingdom, and the Netherlands.” You can read more about Synacor here.
I’m not one to be swayed by hype, but I started watching the stock and soon realized that the stock was having some really big daily movements with nice volume. In some days it would be up or down 10-15%. So I decided to ride the wave to see if I could make a little money. I soon realized that if the stock had a nice jump over a few days, then it was a good time to sell and buy back when the profit takers came in. See stock chart below.
The first time I purchased I make the mistake of buying after a nice run-up. I watched it climb from about $9 to over $13 and jumped in at the top. I purchased 200 shares at $12.795 and the next day the profit takers came in and it dropped. I sold it $11.60 and hoped it dropped some more so I could jump back it. Six days later I purchased 250 shares at $9.97 and watched it climb to over $14, placed a stop loss at $13.5 and sold it at $13.41. The stock is now at $11.95. I’m hoping it falls a little more and I’ll jump back in. I strongly believe there is more upside potential to this stock and plan to ride the wave.
So far I’ve profited $592.86, with my 2 trades. We shall see what happens over the next few weeks as I research other companies to trade short term. I’ll be keeping my eye on SYNC to determine when to jump in and out to make a little money!