Imagine making a trade that returns so much money in so little time. Think about what it would be like to make more than 50% on one stock trade in one day. That’s a lucky trade.
In a moment I’m going to show you my all time luckiest trade. But first, I want to explain why this trade is exception and not the rule.
First, 66% return on one trade in one day rarely happens. Let me rephrase that, stocks do move 66% – rarely does one buy a stock then it goes up that much by the very next day.
Two, as you might guess, stocks that move that much in one day are typically low priced stocks. The same kind of stocks that can go down the same amount just as easily.
Third, a stock that moves that much typically gives back some of it’s gains, the odds of locking in the most gains in the shortest amount of time are very low.
Now think about this . the chance of finding a stock that moves higher quickly in one day is very low, this same stock can easily lose just as money for you, and locking in the most gains in the least amount of time is challenging at best.
Buy on August 3rd, sell on August 4th for a 66% return
Keep in mind that this is a stock trade, not an option trade. A 66% return on an option trade is much more possible than on a stock trade.
Here’s that details:
I bought 1000 shares of American Waste Services at $3.00 on August 3rd, 1994. The next day, I sold the whole position at $5.00. (Go ahead and click on each of the transactions to see the complete brokerage statement)
When I say this is a lucky trade, it’s because I made a mistake.
My mistake was not using the right type of order. I would not have made as much money if I had placed the order I intended.
What happened is this. The next day when I first checked the stock price, the stock was trading at $5. Needless to say I was more than pleased with the price. I then placed an order to exit the position if the stock dropped to $4.500.
At least that is what I intended to do. I thought I placed a stop order to sell at $4.500, instead I placed a limit order to sell at $4.500 or greater. Of course, the trade was executed immediately as the price was greater than my limit price.
As you might guess the stock price dropped and I was lucky enough to sell out very near the high of the day.
This opportunity is gone.
I don’t know what happened to this stock since then. I suspect that this company was bought out by a larger competitor.
But I do know that other opportunities are available to make a large amount of money in a short amount of time. Even though I don’t deal with low priced stocks anymore, there are ways to find stocks that hand you large profits in a short amount of time.
Read about the Stock Rocket trading system for finding and trading those stocks most likely to deliver the biggest profits. Maybe you will be telling me about your best stock trade some day.
Get your hands on a trading method that finds and trades the biggest stock market winners . without risking your entire trading account.
Discover how the Stock Rocket Trading method delivers up to 800% trading profits.
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*** Article by Dave Wooding of the Wooding Trading Company. Dave’s site includes useful stock market trading information. Visit https://www.woodingtrading.com for more FREE information about how the stock market works, trading tutorials and stock market education. If you would like to receive information on a regular basis, simply sign up at https://www.woodingtrading.com/stock-market-newsletter. html
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