Are you planning on playing the first 3 minute surge to sell and then just waiting for the right price to buy?
First off, trust everyone else's strategy more than mine as I'm an inexperienced trader who has typically only bought and held for years companies I believe in. My change in strategy here is that this is a company whose product I believe in (management still has to prove itself) but I had bought in at a higher average cost than most, but got it down to mid 5's and sold this morning for a profit. I'm treating that profit as a tool to help reduce my average share price. I'll try it tomorrow and if I have luck and no reports are released, I'll try again Friday. Expecting low volume and some moderate swings and maybe a short attack or two, and if those happen i'll try to take advantage of them. If anyone thinks this is a stupid strategy, please tell me...again, new to this so just winging it but if I end up with stocks I can't sell for profit and lower cost intra-day, I have no problem sitting tight and holding them so I figure the risk of this is low...major risk is missing out on lower prices as the price rapidly increases with news breaking.
However, what I've been seeing after watching the stock closely for weeks now is a lot of activity in the first 30 minutes, high volume, and then most of the middle of the day a slight up and down around the VWAP punctuated by some short attempts to drive price down (i define short attacks as a rapid increase in volume and stair stepped downward price trends out of proportion to the average fluctuations). If I see that, I'll try to capitalize on it to buy more.
So my specific strategy is to see what my average cost is today, and set a stop limit for tomorrow where I sell just above my average (which is below the closing price). So if it opens at today's closing price and goes down, likely my sells will trigger and i'll be at 0 shares, and will have to use the day to regain position, hopefully at a lower average price. If the opening moves up moderately, I may end up selling all of them once it reaches a 10% gain, and then use that profit to help lower my average (overall) cost if I have to buy back in at a slightly higher average price than when I sold, but with previous profits made from selling to help lower the average cost.
So assuming for example I have 10k shares at average of 5.50 based on what I paid for them today. I'll set my limit at 5.53 in the morning and if it hits, I sell them all for a 3 cent per share gain and look for an opportunity to buy back lower than 5.50 from there. I'll also set some limit buys below 5.50 just in case there's a rapid fall and I'm not fast enough to catch them, maybe at 0.1 price increments for 1k shares each, or similar, but not for the whole 10k balance. Will likely use the past couple weeks as a guide to what the low level I would expect a drop to go to, and set that as my lower limit so that if it hits, i'll have filled back up the whole 10k of shares I want to hold.
Not sure this makes sense to anyone else, but to me I don't have the active trade accounts others have where buying and selling is the click of a button so i have to be a bit more methodical. If anyone sees mistakes in the thinking here, let me know!