Bought FNM at 1.75
Trade ticket:
| Transaction: | Bought |
| Security: | FNM |
| Price: | $1.75 |
| Target price: | $0.00 |
Trade Note:
Bought a pretty small position just for fun- I do think this stock is still under valued, and the upward trend is very strong, so hopefully I can make a few bucks. I'm hoping for over $2.00 within the next couple days, but if it does shoot down I'll likely strengthen my position at a lower, more stable price to average down.Good luck!
Posted about 1 hour after the trade
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Comments
Don't worry, I'm pretty new to trading as well! This particular stock is moving on momentum and pumping- being undervalued doesn't have much to do with it. It's pretty hard to put a value on this company right now, since they have a lot of debt, and the government has put a lot into them. If you ask me, trying to calculate any sort of intrinsic value is pretty useless at this point anyway.
I used technical analysis on this one- saw that there was an increase in trading volume and momentum and an upward trend in price. I bought in at after the price had somewhat stabilized for the day, and waiting to sell on the next spike. It could have corrected itself (I think it'll do that in the next couple days), since there is a lot of price gaping now and stocks tend to fill gaps like that. Today I sold out right after the peak for this reason- I thought the price would move downward to cover some of the ground it skipped. I was right about the going down part, but it didn't go down as much as I expected. I'm not sure how much I'd play with the stock at this point- it looks like volume is dwindling, so the correction could be coming soon. You may see another spike tomorrow in price (AH volume is still pretty high and price movement is upward so far), so I'd use that as an opportunity to take profits rather than get in.
The bottom line is this is a HUGE speculation. You may be right and make some money, or you may be wrong and lose some. I think now would be a very risky time to get in based on how high this stock has gone in just a few days, but who knows. Unless you're planning on holding long-term, I'd start thinking about pulling out on the next spike until the price stabilizes. Just don't forget that this is 99% speculation at this point, so don't be afraid to take profits and let the stock decide where it wants to be.
I used technical analysis on this one- saw that there was an increase in trading volume and momentum and an upward trend in price. I bought in at after the price had somewhat stabilized for the day, and waiting to sell on the next spike. It could have corrected itself (I think it'll do that in the next couple days), since there is a lot of price gaping now and stocks tend to fill gaps like that. Today I sold out right after the peak for this reason- I thought the price would move downward to cover some of the ground it skipped. I was right about the going down part, but it didn't go down as much as I expected. I'm not sure how much I'd play with the stock at this point- it looks like volume is dwindling, so the correction could be coming soon. You may see another spike tomorrow in price (AH volume is still pretty high and price movement is upward so far), so I'd use that as an opportunity to take profits rather than get in.
The bottom line is this is a HUGE speculation. You may be right and make some money, or you may be wrong and lose some. I think now would be a very risky time to get in based on how high this stock has gone in just a few days, but who knows. Unless you're planning on holding long-term, I'd start thinking about pulling out on the next spike until the price stabilizes. Just don't forget that this is 99% speculation at this point, so don't be afraid to take profits and let the stock decide where it wants to be.
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homstudio posted August 25, 2009 (10:02AM)
Dude, you are smart. I own this stock and indeed it shot up and I'm happy. But how could you tell it is undervalued and that it would go to over $2 in a couple of days. Would you mind sharing your thought process? I'm just over a month old in trading