Trading ZQK as a Volatile Stock - sell on fast rallies, buy on fast corrections
I've discovered I do have a little free time I could use for talking here, particularly because there seem to be those who have less-than-honorable intentions that I'd hate to be the only posts in this ghost town.
I have made many mistakes in this market, and the market that existed pre-crash, but I've found, especially for relatively volatile but promising stocks like Quicksilver that if it rallies what seems to be a more than 5% within a day or 3, put in your limit sell order near the top of the day's trading range. It will invariably fall again, so put in more than 1 limit buy orders to execute at something like a 4% correction, 7%, 10%, etc.
News is few and far between with a stock dealing with high debt, but that just leaves the speculators, and thus the volatility. However, unless we start hitting the $2 mark, there's still a lot of long investors who are confident ZQK will turn around.
My idea may or may not work for you. It's done quite well for me in the last month, but I may have been very lucky (especially the sell I did right before earnings - wouldn't have normally traded near earnings but I had thought it shot up unreasonably).
With that in mind, I love this company's products and like its CEO so I'm long even when I'm out, which I am since my $4 order executed on this last unreasonable rally.
I'd suggest putting in buy orders at or below 3.8, as I think it's reasonable to believe ZQK will cycle back down there again. I ALSO believe October will be one of whole market corrections, but I was wrong when I thought the first weeks of Q3 were going to have a whole market correction as well. Luckily, I didn't trade on it, but there you go.
If my other thread's predictions are also correct, ZQK will climb back strong after another cycle or two and hit 5 by the end of November or March.
So I guess I'll be back then to see how my predictions turned out.