NEW YORK (TheStreet) -- On Thursday I woke up, turned on my computer, logged into my trading account and shorted NetSuite (N) for $92.62. I was feeling super confident in this trade because I was using the same indicator I used on my double-digit return.
A few hours later, I checked the trade and saw N had dropped to the $88 dollar range. Normally I would have bought to cover at this point but because of my newly found indicator I've been using, I continued to hold it and move my stop closer to current price, locking in profits.
Friday morning, I woke up and saw the stock continuing to flutter in the $88 range. I closed my computer and went out for a run, still feeling confident in holding my short position. At around 8:30 a.m. PDT, I came back from my run through the canyons. Instead of feeling fanatical and nervous about the trade, I had 100% confidence in the trade, remembering the one impeccable indicator that told me this stock was going to continue tumbling for a little while longer.
At around 9 a.m. PDT, I took a shower, read a script made a few phone calls and checked back at around 10 a.m. To my delight, the stock had dropped all the way down to the mid $84 range. Happy with the profits, I bought to cover at $84.48.
That trade brought me a total of $8.14 per share in profit.
I checked the stock's technicals when I was considering exiting and a daily chart of N showed that it was advisable to hold onto the short for even longer. The candles continued to be long, strong and bearish after firing short out of the bearish continuation pattern $N had been stuck in last week.
I decided to move on and get out of the trade because I was happy with the gain and believed that bullish moves are on the horizon in the coming weeks for the market as a whole. Instead of fighting that trend and holding onto my short position, I thought it best not to fight the market. Don't try to go short when the tides are rising, was my thinking.
I mentioned in a blog last week a tool I used to help me achieve a very successful double-digit percentage gain on a single trade in a matter of days. The same tool helped me find this short on N.