I had quite a cyber trading experience last Friday with Inhibitex ($INHX). The stock dropped 37 percent during in the pre-open market session on fear over the Pharmasset news. Having traded this beast before, I decided to buy a good size trading position for a quick turnaround at about $8.20 (see tweets below). The stock proceeded to drop into the $6 territory a few minutes after I made my purchase making me look foolish. I was thinking hard about closing the position when I noticed from the corner of my eye Derald Muniz (@1investor)’s tweet about covering his short position at $6.75.
This quick thought came to my mind: if Derald is covering, we might get a bounce from here. Anyway I had a meeting to attend so I put an order to sell the position at $9.30.
When I came back to the desk right after the market had open I noticed the fill on my station for a $1.10 profit per share. I was happy and I have @1investor to thank for his tweet nudging me into the patience territory.
I have followed Derald for quite some times and it is amazing how often we cross path trading the same names especially the great companies getting clobbered on some kind of news.
I gain lots of value using the Twitter API to augment myself as a trader and synchronize my brain with the bests. This experience is a clear example of what I mean by growing a second brain on Twitter.
Thank you Derald.
Written by Michael Bigger. Follow me on Twitter and StockTwits.
