Has: Great post. I made a big gain on the huge upside move HIMX made a year or so ago, but not knowing how to play options (and thinking that the cost of the options would be too high), I sold at $11 (realizing that it had moved into unsustainable territory) and didn't get to ride it up all the way to the top. If it does that sort of thing again, I'll get one of my friends who understands options to show me the best and most economical way to place some protective puts. As it is, I just keep buying more and more shares with the gains from my trades, and taking advantage of the swings.
My biggest gainer of all time has been IMOS (I loaded up below $1 and traded it like crazy all the way to $25), but I should have sold more shares when it was at $25. I know that you own IMOS, also, and my current strategy is to sell a small number of shares when it swings up and buy them back when it falls back in order to keep lowering my cost basis further. I'm just hoping that SJ and the gang get the conversion completed in the near future.
Take a look at SPCB. I've made a lot of gains buying it in the range of $7.50 to $7.65 and selling it at much higher levels and playing all of the swings. It is even more volatile than HIMX.
Of course you can capitalize on the same patterns over and over. I've been trading this stock for years, and I'm so far up that I don't even keep track anymore. I put in multiple buy and sell limit orders in both directions, and trade it whichever way it moves. I love it when the big guys turn the spigot on and off. I load up in the $6 range and progressively sell as it moves higher. Sometimes I get to trade it two or three times in the same day depending upon the volatility. What's not to like?
Ha ha. After four years of 20% gains overall, I elected to hold my IMOS shares rather than sell them at $25. Big mistake! If I had sold those shares, I would now be showing a 20% gain for the year, but instead, I'm only now back to break even. If IMOS climbs back to $25 before the end of the year, I'll be in fantastic shape, but I'm not holding my breath. Live and learn. Fortunately, all of my other stocks are doing quite well, and I've built up a huge cash position. Anybody got some good deep-value stock recommendations? GL to all the longs.
Hi Stechsjj: I was going to recommend GE a few days ago at $25, but then Trian announced that it had taken a 2.5B stake in the company, and the price jumped. I think it's still a good buy at $27, but I've owned it for years, and my cost basis is very low. I own a lot of shares, and I trade 500 share blocks all the time just for fun. You'd have to do your own DD but the company is making a huge transition from finance into the internet of things, and it has a huge moat around most of its businesses (jet engines, locomotives, turbines, medical devices, etc). It has a dividend yield above 3.5%, and I expect the stock to climb into the mid-30's in 2016. I like it because it offers diversification, a good divvy, and long-term price appreciation. The company has a 250B backlog of orders and has announced that it will spend 50B in share buybacks.
Many people on the IMOS board own HIMX. Again, you'd have to read about the company to understand why many of us own it, but it holds lots of patents, pays a 4% divvy, and has great future prospects. Most of us started buying HIMX at $5 or below, but I trade it all the time at every price level while holding core shares for the long term. The stock oscillates from $6 to $8 quite often, so every time it falls into the $6 range, I load up, and then I gradually unload shares as it rises.
You've got my vote. I bought shares down to $16.25 on the last downturn and sold them in the $19's. I bought a few shares at $17.30 this week, and I guess I'll start adding more shares during this coming week. I can't believe I didn't lighten up my overall position when this thing was in the 24-25 range. Live and learn!