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.
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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