A Play with PRM

The latest trade that I have made in my investopedia account is I bought 8000 shares of PRM. This trade is much different than past trades with this stock. In past contests, this was one stock that always seemed to "roll" for me. What I mean by "roll" is that when you look at the closing prices over time on a chart, it looks like a wave. This stock in the past always seemed to be a good buy at around $3.90, and a sell at around $4.20. This stock would "roll" between these two prices, and I would usually make profits of $500-$1000 each time. Not huge money in the contest, but a nice little amount for very little research. I would make this trade when I had very little time, but still wanted to do something.

Now when I bought this stock, I bought it at 2.13, a large drop from last time. I am planning to hold on to this one a little longer this time. Today it closed at $2.15; once it hits $2.25, I will put in a sell limit, and move it up each day the stock makes gains. This is what I was doing at the start of the contest with shorting. I would try to have my cover limit right above where the price was, and slowly drop it down as the stock fell. The idea behind this is if the stock made sudden gains, I would not loose. The trick of course is to have your limit high enough to allow for market fluctuations, and this was not always the case. It is also important to have a stock with higher volume, so you can get out when you want. Anyhow, I am now going to try this with PRM, while holding it long. As always, time will tell if I was right.

Good Luck With Everything!

Mark Zimmer