Wednesday, June 01, 2005
Up $2,500 today. I picked up an extra 1000 shares of NSYS today when my long-standing limit order got filled at $4.61. I don't know why the stock dropped so percipitiously (probably someone panicked or decided they needed cash fast). Whatever the reason, the stock dropped nearly 20 percent and luckily, my order was waiting to be filled. Placing limit orders like that is risky business, especially for someone like me who rarely checks his portfolio during trading hours. When there is no reason for a stock's decline, the strategy works well. Indeed, by the close of trading, NSYS shares were back up to $5. However, sometimes a company will release lousy news during trading hours (an unethical practice in my opinion), and the stock will drop, leaving anyone with a limit order to buy holding the bag. I had that experience with COLL a few months ago.