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Timing Is Everything In the Stock Market

stock market
photo by MP Clemens

Depending on how you look at today’s activity in the stock market, it could be either considered good or bad. What it comes down to is timing. Timing is everything when you want to beat the stock market. If done correctly, you can have a great day when the market has had a lousy one.
Let’s look at what happened today. The market was oversold so much in the pre-trading hours that they halted all trading until they could calm the situation down. So when the market did open, most stocks were hit pretty bad. If you timed it well you could have picked up some great price on some solid companies. It’s days like this that will earn you some great reward or separate a man/woman from their money real quick if you’re not careful .
Today was a great day for me because of the experiences I’ve had in the stock market over the years. If you noticed I didn’t say it was because of my smarts, because even some smart people lost some of their capitol today. To help you understand what I mean I will show you some of the trades that I did today.
The first one I want to talk about is National City Corp. (NYSE:NCC) This stock was worth a hell of a lot more a few months back, but because of the financial sector’s collapse. The stock has been trading within the $1.36 to $5.00 range for the last 3-4 months. The last time it took a dive, it hit $1.36 and four days later it was at $3.51, a gain of 150%. Today news came out in regards to PNC Financial Group acquired National City Corp. for $5.6 billion. That news and the drop in pre-market trading left the stock at $1.85 per share at the open. I put a buy in at $175 and sat back as the price worked it’s way up to $2.33 at one point and closed at $2.06, a gain of 18% at the close. If I had sold near the high of the day, it would have been a gain of nearly 30%
My second buy was in a stock that I’ve been following for some time. The company is Quanta Services Inc. (NYSE:PWR). This is a great company with a even better future. Because of the beating that Wall Street has been taking, the stocks of Quanta has felt the pain. There is no reason what-so-ever that the share price is under $20, but it is. When I saw what happened to the stock in early trading I put in a limit price of $15 per share because I didn’t expect it to stay. Wouldn’t you know it, the stock opened at $15 and briefly dropped to $14.84 where it immediately went back to $17 within minutes of the trading day. This is a company that is expect to benefit greatly from the Picken’s Plan, so I’m going to hold on to these stocks for some time. So for the one day I have a gain of 16%
The last one I’m going to discuss is Lynn Energy Inc. (NASDAQ:LINE). This stock didn’t do has good as I expected, but it did go up from where it started the day at. This a company that has an unbelievable dividend yield. At it’s current price of $15.47, the yield is 15.60%. That right I said 15.60% and to make things even better, the next ex-dividend date is November 5th. At the present time my yield is actually 17.5%, I don’t know about you but I’ll take those types of yields any day of the week.
I’m not trying to brag or anything like that, but I just wanted to show my readers what is possible even on a bad day. It all comes down to timing.

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