TIM $15,585, Up $205 No Overnight Positions
Days like today remind me why I’m completely in love with this game. Why this game is ideal for smaller investors, traders, newbies and veterans alike. Basically anybody with less than $50,000 in their account. Or $100,000. Or for those smart people a few million. Why I’ve never needed a fancy office and have always just worked from my bedroom and living room. Why all you need is an internet connection. And a decent broker, like Thinkorswim. Why you can do this in your spare time, outside your job, school or any kind of time consuming habit. Why you shouldn’t manage your money like a diversified mutual fund. Especially when you have so little.
Why I don’t have to be polite. Ever. Why I can say whatever the hell I want. Why I’m gonna get advertisers by the hundreds—like Wall Street Survivor—and you’re gonna have to train yourself to ignore the right hand side of my website. Not that you’re gonna be able to do that. Why my upcoming talks at the University of Minnesota, University of Buffalo and Boston College are all gonna rock. Why everything else in finance, particularly sissy (I mean value) investing, bores me to death. And it should bore you too. Why my book and DVD and future products are going to teach you the rules, risks and rewards of this great game and make some of you millionaire and me a millionaire many times over. Why nearly every day my website breaks another traffic record. Why I just sold another DVD as I’m typing this. Why out of the few hundred I’ve sold, there’s only been 2 returns. Why, unlike other financial authors, I don’t try to hide my DVD, considering it just another income stream, taken advantage of only by the biggest suckers. Why I might even more proud of my DVD than I am my book. Why I’m gonna get people to check it out until my dying day. Why I can be cocky as hell and it doesn’t matter because you’re gonna checking in every now and then whether you want to or not. Because it’s not BullShip. Because it’s unbelievable. And affordable. And exciting.
That one thing that I’ve devoted the last decade of my life to, the thing that’s made me wealthy. At least for a young guy. Even though I’ve barely scratched the surface. Even though I’m not that smart. Even though I’m not that great a trader. Even though 90% of traders lose. That one thing that’s gonna shock the world. That doesn’t care about whether it’s a bull or bear market. That doesn’t care about economic conditions. That doesn’t try to value a company’s worth based on lying management and massaged financial statements. That doesn’t involve you trusting anybody. That doesn’t rely on staying up to date with the latest news.
That one thing that’s gonna put all other “stock market formulas” to shame. Especially those that actually say in their disclaimer they’ve been compensated by the companies they recommend. Because I’m not getting compensated by companies. Because I think these companies are crap. Because I think there’s a ton of illegal stuff going on that I don’t want to know about. Because I focus strictly on the charts. Because the charts make this game so easy to learn. I don’t have to package it. I don’t have to market it. I don’t have to understand it fully. I don’t even have to be very good at it.
Oh yes, PennyStocking is on.
Sure, there were a few low priced stocks moving: VIV, which I just featured over the weekend was up 5%, some little China plays CHNR and TYM were up a bit, ultra-low marketcapper CTIB continued its steady march upwards, but clearly, there were two main micro momos, COIN and SHZ. I’ve covered both extensively (just click the tag and see), but only now are their charts setting up for predictable moves (extreme price moves + fickle day traders = predictable patterns).
COIN is tough because it’s a crap company with a strong chart. And today they were up due to some newsletter, aka fluff. Anyone can scalp this for 25 cents-50 cents, but that’s no fun and since I’m already pushing my trading limits, I must be precise in my entries and exits. I think it’s gonna have a tough time clearing the all-time high just over $14 but if it breaks that level, that’s when shorts stop adding and start covering, that’s when a quick run to $15, $16 or even $17 is possible.
Sure, even if it can’t breakout, the $1 difference between $13 and $14 would still be a nice profit, but if the volume is there tomorrow, I can easily hop on, no reason to hold overnight. The company has shady PR people, so they now how to squeeze the shorts, who wants to bet they’ll come out with some PR this week for that specific purpose? Ideal trade for newbies would be to buy on a clean breakout on strong volume—think 5million+, everything else is just small moves that can easily reverse.
Easier PennyStocking play is SHZ. On Saturday, I warned about intraday $2+ spikes
and that came true within the first hour today and that’s why I shorted 500 shares at $9.47. At first, I had my order at $8.74, then $8.99, then $9.24 (all strategically before the quarter points where there are usually big blocks), but I kept moving it up because I hate shorting into spikes—again, they can go further then you expect. $9.47 was a pretty good entry, $9.74 would’ve been ideal, but it basically surged there from $9 within 2 minutes, so it was tough to be perfect.
When some big sell orders came in, it tried to hold $9 for a few minutes, but failed and I decided to take my $250, covering at an $8.95 average. Within a few more minutes, it test support at $8.50, so I got out too soon, but since it was a morning spike, I didn’t want to take any chances. Proven right about 10 minutes later when the stock retested highs around $9.60.
Afternoon session was different, less volume, gradually downtrending priced, I re-shorted 400 shares at $8.50 when I thought the price would totally collapse—remember it’s up from $4 the other on no news, so this was possible, but not probable—but instead it bounced back to the $9 range (on just a few thousand shares) and I cursed my lack of discipline. (Ideally, I should only short when it goes negative on the day—that’s when I’d feel comfortable holding for $1-2/share gains.) But I had the trend on my side so when the ask came down, I covered at $8.59, still finishing up $205 on the day.
Ridiculous price spreads! Stock finished strongly at $9, so I’m hoping for a morning spike tomorrow to double digits, at which point I’ll short some, but again, I prefer afternoon fades, so I’m basically gonna be all over this bitch all day. Ideal trade for newbies would be to short into a ridiculous spike—tell yourself, you won’t trade it, you won’t trade it and when you can’t take it any longer, that’s when you short—or an afternoon fade. Whether it spikes and drops quickly or fades gradually, this thing could tank $2-$3 within an hour if the variables are aligned.
Yeah, stop playing video games, this is the real game!
Posted in Good Trades, Patterns To Buy, Patterns To Short