Trading Challenge Update
Filed under: Stock Analysis, Trading Challenge
Trading Challenge, Up $1650 to $8,920.
The last week has been a very interesting one around A-Train Finance headquarters. It’s been a few since an update, and I promise to be better about posting more often. The trading challenge is still going in full swing, currently up 11.7% since January 1st, 2008 for a total of $8,920.
My biggest play yet was on Valentines Day, this past Thursday. The stock was Ambac Financial Group, (ABK: 0.5223 -0.32%). After a morning spike, then gradual decline into the afternoon, I saw strong consolidation at $9.36 so I decided to buy in. I have to admit, ABK has been one of my favorite stocks to trade since the beginning of the trading challenge. It seems to follow a particular pattern almost every day. It gaps up, and then equalizes back down. There are a ton of ways to make money off of stocks like this, which I’m currently developing. Anyway, back to the trade. I bought in at $9.36 and waited. It sat steady for about 45 minutes, and then started to climb. For the next hour or two, it consistently kept making new highs, and continuing up. It peaked at $11.16, and dropped back to the $10.70’s a bit. I entered a sell order for $11.00 right as it bounced one last time right up to $11.00. This was by far my best executed trade so far. A profit of about $1650 after commissions.
I’m currently holding 2000 shares of Charter Communications, (CHTR: 0.00 N/A) purchased @ $1.01 / share. It’s a very slow moving one, but is trending upwards nicely, currently at $1.04. I think this will be a good short term play, and I have a sell target of $1.10 - $1.15.
Also, I currently have 500 shares of E-Trade Financial (ETFC: 14.31 +3.47%) at $5.05. I am expecting it to hit $6.00 relatively soon. I’m thinking it should gap up nicely to around $8.50 within the next few months. Company insiders are picking up shares, and no one is selling. I think by the next quarter things should be picking up for E-Trade quite a bit. Please keep in mind that I do not give buy or sell recommendations. Please do your own research.
February 17th, 2008 at 7:40 pm
I agree it should have more holding power by the 1st quarter results. I believe it could hit the $8 mark in the next month if its not acquired.
February 21st, 2008 at 7:27 pm
Humans tend to see pattern where there is none. How do you pick out patterns that will work? What tells you that it will happen again? ABK seems too risky to hold long term so there is little opportunity to get out if it goes wrong.