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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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  • Reaper
    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.
  • MTXR
    Wow, so they canceled all the trades?
  • BREAKOUT!!!!! on QMNM
  • (COUGH) shameless search grab (/cough)
  • jay
    Talking about CEG, at 28, isn't it time to short it?
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Start Here

Who Is Timothy Sykes And Why Should I Care?

See Tim's full bio HERE. Tim turned a few thousand dollars into a few million by taking small gains time after time on hundreds of volatile penny stocks, discovering that his trading strategy, while consistently successful, works best for those with smaller accounts.

Determined to teach others this PennyStocking trading strategy (learn more HERE), he went back to his original $12,415 roots (already $58,000+ even though the stock market has crashed) to show everyone how to turn thousands into millions, even while having a life (somewhat) and making plenty of mistakes. Currently he is the #1 ranked trader out of 25,000+ on Covestor)

How Can I Consistently Make Money In The Stock Market?

Hard work, Determination and Know How.

Hard work to learn how the greatly misunderstood niche of penny stocks provides opportunities every now and then on which you should pounce.

Determination to seek those probable profits out and know how in order to actually profit from them.

Long story short, wait for stocks that are extremely volatile - for whatever reason - and then aim to take small profits (between 10 and 50% within a few hours, days or weeks) here and there, either from betting on higher or lower prices (yes, you can make $ betting on lower prices, it's called Shortstocking (learn more HERE).

Why Penny Stocks?

As Tim explains in several ALL-NEW instructional DVDs (see them HERE) and in over 2000+ blog posts, penny stocks are the most hyped and corrupt niche in the entire investment world. These two qualities make them the easiest to profit from (legally) because the vast majority of people who play penny stocks are suckers and all-around ignorant people. If you have any intelligence whatsoever, you have a clear advantage and it's like playing basketball against mental midgets.

Where Do You Find Stocks To Trade?

This is the #1 FAQ (see more HERE) and it is answered in THIS instructional DVD.

Of course, that's just a brief introduction - to receive a full education, there is Tim's book An American Hedge Fund which is the story of his remarkable rise and lessons learned.

To truly increase your odds at profit, Tim has designed an entire set of detailed instructional DVDs, covering all the variables that amount to over 24 hours of instruction (see them all HERE)!

TIM Trades

View All
Date Stock Buy Sell Net
Nov 6 QXM $4.31 $4.80 $1936
Nov 4 COT $8.66 $8.88 $642
Nov 4 QXM $4.61 $4.89 $822
Oct 30 DDRX $25.70 $26.53 $812
Oct 29 CTDC $4.00 $4.42 $781
Oct 26 AWSL $3.24 $4.10 $2516
Oct 23 RODM $5.27 $5.23 $301
Oct 22 AMLM $2.69 $2.97 $820
Oct 22 USEG $6.12 $6.09 $85
Oct 20 CBOU $8.93 $9.06 $243
Oct 16 VRMLQ $16.79 $18.65 $2773
Oct 13 YONG $11.05 $11.66 $1202
Oct 13 NPHC $0.59 $0.71 $583
Oct 12 IMGG $0.60 $0.70 $682
Oct 9 ZAGG $5.50 $6.10 $2380
Oct 7 GVBP $0.03 $0.27 $702
Oct 1 NPHC $0.70 $0.85 $1482

Total: $92,304 (644%)