I don't get to check the market during the day always. Some days I do but most days I'm busy and don't check the market and my portfolio until after close. If I can I try and check the market a bit after open, such as this morning.
This morning, I checked my portfolio just after 10am and read through a couple of company announcements. I refreshed my portfolio screen to see that the portfolio value had rocketed up! Lo and behold, RCG had jumped up from 0.54 previous day close to 0.695 and there was still an open bid in at that price for about 900 shares. I placed a parcel of 20,000 shares on the market and thought I would see what happens. I managed to sell 18000 at 0.695
Back in January, something similar happened. That time it was GZL. I just so happened to notice there was a bid at $3.10. I had bought for $2 and I managed to get a sell order into the market and sell to the bidder. I subsequently bought back those shares at $2.60 because its in the income portfolio of the SMSF and it is a good dividend payer.
So here are two random events where I have managed to be at the right place at the right time. Given that I don't check the market while it is open all that often it's got me thinking - how to take advantage of unexpected spikes in the share price. Do others have a strategy for capitalising on these? How many long term investors put in rising sell take-profit conditional orders?
I'm wondering how I would manage a rising sell take profit. Assuming that all else is equal (ie, that the share is just trading along as normal) I could, at the beginning of each week, set a take profit rising sell trigger at 30% above last week's closing price.
I would be interested to hear if and what others do to manage rising sell take profit conditional orders.