Price Alert Experiment

Earlier this week I shared how to use a price alert in order to make money on volatile stocks.  Today I am beginning an experiment to try executing this strategy and make some short-term dollars.

Currently, I have two brokerage accounts, one with E*Trade and the other with Robinhood.  I will be using both of these for this experiment.  I will use Robin and the approximately $400 in that account for the trades and E*Trade for the alerts.

I have added an alert for Advanced Micro Devices, Inc. (AMD) at $10.50 with hopes of buying it near $10 per share and selling it for close to $14 per share.  You can see from the past year’s graph below that this stock moves up and down between these levels a few times per year.  I am still watching The Container Store (TCS), I have an alert set up to let me know when it drops below $4 per share with hopes of selling it for $5 per share.


I am using Robinhood to make the trades because I don’t want to miss my opportunity like I did last time, Robinhood is on my phone and super easy to use so I think it is my best option to make a trade like this in a hurry.  Today I prepared for this experiment by selling all my current holdings so I would have the cash ready when the moment was right to buy.

If you have not signed up for Robinhood use this link and do so now.
It is the easiest way to begin investing in the market and there are no fees!
Here is a link to my full review of Robinhood.

I selected the stock AMD by looking at the “Trending Tickers” that Yahoo! Finance features, see the image below for where to find this.  I try to look at this list at least once a day and when I see a symbols showing up often, I know that is a volatile stock and offers some profit potential.  Today I also saw that Facebook (FB) was falling while the rest of the market seemed to be rising.  I believe the most likely reason is that a large investor sold all their shares, which led to a monkey-see-monkey-do sell-off.  I believe that FB, even though it is not as popular with today’s youth, still has many good years ahead of it.  A huge number groups and people use it to connect and schedule events; Instagram and SnapChat are not ready to replace those features even if they are replacing some others with some groups.



I made the following transactions with my Robinhood brokerage account:

I sold 1 share of ROKU for $47.63
I sold 5 shares of MJX for $32.62 each, total cash from sale was $163.10
I sold 5 shares of BAC for $32.02 each, total cash from sale was $160.10
I sold 3 shares of S for $5.44 each, total cash from sale was $16.32
I sold 1 share of SIRI for $6.14

I bought 2 shares of FB for $178.34 each, total cost was $356.68

Being that today is Friday, I contributed $105 to my IRA and $50 to my brokerage account, both of which are at E*Trade.


Check out the links at the top of the page to see all my historical trades and current holdings.

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