One Week Job – Day 3 Update
November 8, 2007 12:45 am
8:00am on Day 3 and Sean was energetic and ready for the what the day would bring. We went to the office with a full schedule ahead of us and planned out the details, looked at the pre-market news and set out to fund a few opportunities. This day we had the added challenge of fitting in an NPR reporter who was coming to interview both of us and to find out more about Sean’s projects well as a podcast interview with Jim Jubak of Microsoft’s MoneyCenteral.
As the NPR interview was closing and we were wrapping up, Sean came across the opportunity of what looked like a potentially profitable trade into Crocs (CROX). Looking at all of the data, he felt that the stock was poised for a bounce, even thought the overall market had been weak that day. The stock was then sitting at $41 and had shown a good deal of support at that price.
As we were still working on a few other items on the daily to-do list, we initially passed it up even though Sean was getting a bit anxious watching the price action. It wasn’t until it moved up towards $41.30 that a confirmations signal was clearly reached. We bought a small position to see how it would play-out.
It turned out to be a short-hold as the market was becoming more volatile throughout the day and the position was not moving at all from its support level. We made the decision to abandon the position for no-loss and no-gain. (FYI: Sean was right in his assessment of the position and if we had held it, we would have ended the day with a $1 per share profit on that trade)
Other than that, we had 5 successful trades for a nice profit and decided that the markets would have to wait as we had two important meetings that required some preparation. Over all, the day was productive and Sean put to work many of the important lessons learned about trading stocks. Tomorrow will be his final day as he is headed north in search of the perfect baked cake.
(Note: All trading and stock transaction were done under the direct supervision of Andrew Horowitz and no client money was used in any of these trading lessons/simulations)