After waiting for the market to stabilize (did it ever, no not really but it got a little less chaotic) I purchased XGTI on Robinhood as planned the night before.
So my purchase today was: XGTI 16 Shares @ $1.18
Purchase Amount Was: $18.96
Market Close on XGTI stock was: $1.17
Notice that XGTI went down one cent. Since I have 16 Shares I lost a whole .16 today. Keep in mind that working with a commission broker instead of Robinhood would have added another 4.95 or more in commissions today.
My loss today was a whole: -0.843881857% less then one percent. XGTI in general terms of the value against yesterday was -.12 or 9.30%. By waiting and watching for the stock to stabilize I was able to get it 11 cents cheaper then buying it at market open. There was one chance to get it at a deep discount but it was brief and did not repeat.
Keep in mind in most cases if you are buying you want to watch for a stabilization of the stock.
So What made me want to buy this stock anyway? Yesterday I mentioned the B Bands as being a reason I purchased this stock. Here is the B Bands Charting.
The black line in the middle is the fair price line, this is based on historical charting of the last 20 days of market activity. The numbers above and below are deviations from the moving average and considered buy and sell marks. The further from the center line means the more overbought or oversold the stock is. Crossing out of the shaded area is a good sign to sell if crossing out on the top and buy if crossing out on the bottom. As you can see on the 23rd this stock fell out of the shaded area. The bottom of which today (6/24/16) is $1.23 (the orange tag on the chart above) that is the mark for a buy historically using B Bands. Closing today at $1.17 it is below that point again today so historically speaking this was a very good buy. If this stock rallies on Monday it would still be a good buy (according to the B Bands) up to $1.82. Crossing over the fair price line would then mean it is starting to be overbought and depending on trend would need to be watched for possible sell for profits. According to B Bands this stock would be severely overbought a strong sell at $2.40. (Which would be a 100% profit from today's price). I like to establish a sell mark goal when I buy a stock. I usually set a profit percentage of 15% for the return. A 15% return on an initial investment would be a sell point of $1.357. Notice this is still very much under the fair price of $1.82. We are looking to make a quick reward, but will reevaluate the stock when it gets closer to this point if it rallies back. Remember B Bands change every day. They will drop on Monday because of the low close today, as they dropped today because of the low close yesterday. Each close affects the 20 day moving average or fair price for the stock. Another drop would make this stock even more of a sale, but opens the possibility of a downward trend, which is the reason for stop losses, which I will explain tomorrow.
Balance: 19.76
Cash 1.04
Stock: 18.72
- XGTI: 18.72 (16@1.17) (Goal 1.357 a share for a total of 21.71)
Let's see what Monday Brings!
