Portfolio update 06-28-12

My portfolio as of 06-28-12 still consists of 11% cash and 89% stock. The relative weight of each stock is shown here.

UPDATE
1.ALIM

ALIM 5day


 As predicted in my previous post, ALIM was due for a run up. The meeting with FDA attracted gamblers as the price shot up Monday and Tuesday. I was away on Tuesday and did not have a chance to sell. I was also reluctant to sell because no news has come out. After announcing 07-18 analyst day, the disappointed investors pushed the price down.

PLAN
In about 20 days before 07-18, watch for news of approval in any of those european countries. Exit 30% position on the news if the price was above 3.5. Re-estabilish a 20% position after the pull back.

2. PBIO
There was a spiked price at 0.4199 by the end of this trading day resulting in 75% increase. It might be a market order from an unlucky trader. Keep close watch for the price. With such a low float, it won't come back once it runs.

Not much change with DYN, AMBS and THQI.

Summary of 3 day trades on 06-27-12

The ARNA FDA decision on 06-27 was hyped. I followed the suggestion from an internet forum to watch for its competitors (OREX and VVRS) instead of ARNA. The price fluctuation was more dramatic in OREX. It was under $5, perfect for day trading.



OREX 1day

 I  kept in mind not to be greedy. I had an estimate of profit goal as I was calculating $0.1 fluctuation resulting in $70 with 700 shares. I aimed to scalp about $0.1 for each trade. Percentage may be a better metric to use. I just compiled a day trade goal estimator table, which will be used every time I do a day trade. In hindsight, $0.1 on a $5 stock is 2%. <<2% is generally a safe zone.>>

I initiated the first trade of shorting at 5.19 based on the following:
1. There was a repeated rise and pull back pattern. It was due for a pull back at that point.
2. The stock was overbought. It might be less risky to short at this stage.
I covered the position with the $0.1 goal in mind.

The second trade was made with market orders and based on the momentum. There was a significant increase of volume as well as price. I jumped in half way and was planning to get out fast. It took only 1 min.

I was tempted to short on the dumping stage. However, there was no bounce back to give me the chance. At 4.6 it was oversold and I expected short covering by the end of day. So I did the third trade at 4.6 and left for an hour. As soon as I got back, I realized the goal and closed the position.