Wild Google Inc. (GOOG) Stock Price Fluctuation Teaches Valuable Lesson
Posted by Timothy Sykes on Wed 1st of Oct, 2008 09:07:55 AM
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Late yesterday, with just a few minutes to go before the market close, GOOG traded like a wild penny stock, losing nearly half its value and then recovering to close down only $58/share or 15% on the day.
Some wannabe websites and financial journalists like THIS say the day high was $88 asnd low was $26/share.
So how did this happen? Who knows and who cares. Erroneous trades, fat finger mistake, blah blah blah, it happened and the reason why doesn’t matter.
The Nasdaq cancelled all the trades above $425 and below $400, saying their wannabe-SEC-Big-Brother-like action cannot be appealed…see their entire PR on the situation HERE.
Wanna whine about it? Take a number–thousands of traders made and lost a ton playing this last minute volatility and all their heart-racing bets were for nothing. Nothing but a higher risk of having a heart attack at an earlier age.
Welcome to the stock market people. The lesson here is you have no control whatsoever.
Stock price manipulation will always happen, to varying degrees, exchanges and regulators will always be freedom-and-capitalist-hating oppressors/terrorists, to varying degrees, large funds and traders will always get preferential treatment, to varying degrees, small firms, traders, bloggers and other financial guppies will always bitch, whine and moan, in a vain attempt to seek power/comfort/justice, to varying dgrees, none of which are very possible in this joke of a profession.
What you can do–always be on the lookout for such pricing inefficiencies and try to profit from them, legally. Learn to ride these waves of volatility. Obviously, I think penny stock volatility is easier to predict, but that’s just me.
If you cannot find shares available of a stock to short, your trade gets taken back, somebody else makes $ and you don’t, etc., deal with it, don’t bitch. There’s always gonna be more opportunities, the key is experiencing and learning from them so as to be able to better take advantage of future ones.
Good advice from the last paragraph of a great little book An American Hedge Fund.
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TIM Trades
View All| Date | Stock | Buy | Sell | Net |
|---|---|---|---|---|
| July 2 | KIRK | $10.60 | $11.53 | $1377 |
| June 30 | ISRL | $107.97 | $118 | $985 |
| June 24 | LZB | $4.53 | $4.81 | $1240 |
| June 17 | GWSC | $1.86 | $2.76 | $2679 |
| June 15 | SHZ | $1.66 | $1.83 | $280 |
| June 15 | SPNG | $0.11 | $0.18 | $630 |
| June 12 | JAZZ | $2.84 | $3.26 | $380 |
| June 12 | MAPP | $9.68 | $10.07 | $565 |
| June 8 | HEB | $3.00 | $4.18 | $334 |
| June 3 | GROW | $8.64 | $8.96 | $740 |
| June 3 | SYMX | $1.21 | $1.11 | $940 |
| June 1 | USCN | $0.55 | $0.86 | $260 |
Total: $65,674 (421%)
I was one of those traders … alerted to the volatility I bought 200 GOOG at $340 and sold it immediately for $390. I knew at the time there was a risk of the #$*$DAQ canceling the trade, but I thought it was worth it. I’ve made some good money trading such drops before, on CEG and UAUA. Oh well, I can move on.
Wow, so they canceled all the trades?
BREAKOUT!!!!! on QMNM
new post:
http://timothysykes.com/2008/1.....watchlist/
(COUGH) shameless search grab (/cough)
Talking about CEG, at 28, isn’t it time to short it?