Friday, November 7, 2008

Flipped 20,000 Share of Ford

Bought and Sold 20,000 shares of F (Ford) Paid $1.93 and Sold at $1.95 crediting my account $400.00. (before commissions.) Since it's a little slow in the put market today because it's an up market, although I have some options orders in, none have been filled yet, I decided to watch a stock with tremendous volume so that I can flip it for a profit quickly and that was Ford. While I have no opinion on Ford I am always looking to make money, so why flip Ford instead of a different stock, what makes Ford so special for a quick flip? The way that It there are only two criteria needed to make a day trade

#1 Volume - The stock must have major volume so that you can buy and sell at lightning speed without concern of not being filled. Ford, as I am writing this has had 69+ million shares traded already today.
# 2 Price -Because the price has to be such that if you buy 20,000 shares, that you have the money for it. So I pick ford and waited for the momentum and traded in and out within two-three minutes.

On these type of stocks, if I have the time I'll watch and buy on the bid if I can, in this case the upward momentum was such that I first tried buying on the bid but it was rapidly disappearing so I took the offer and then waited, 2-3 minutes and sold it on the offer.

Now I'm back on the hunt for options

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