Buying Stocks Like Mexco Energy Corp. (MXC) Works Too…If You’re Quick
As you know, I want to teach you how to profit from all these sketchy low priced stocks, from the long AND short side, but since I’ve got about a dozen projects that interfere with my trading and considering I suck at going long, every now and then, I’m gonna bring in some posts from other traders/writers from whom you can learn a thing or two.
So, get ready this site is gonna increasingly become Seeking Alpha except that it won’t suck as there won’t be thousands of unqualified people writing about thousands of different stocks—now you’re gonna get just a few select views on a few select stocks, the only views and stocks that really matter to PennyStocking. That way you’ll be able to see many more angles…sound good?
First guest post comes from The Market Kid who’s been buying these same energy stocks I’ve been looking to short and enjoying far greater great success. Today, they might be dropping like flies (I put in short sell order for PDO at $29, $28 and $27 missing it each time…idiot…but smacked FPP in the face taking home a cool $500, detailed post coming), but yesterday TMK had no problem buying into the face of such absurdity, which can be a very good thing…if you take profits quick
Without further yammering, I give you The Market Kid’s slightly edited/chart-enhanced/somewhat risky (he uses all his capital!) yet successful MXC trade:
$22,465, Up $2,895 on the day.
Positions traded for a gain: MXC ($2,895)
Positions traded for a loss: NONE
Open positions: All cash, really in search of that $25k mark.
Oil was surging unbelievably high today after a report came out today stating that U.S. inventory had dropped by almost 5.3 million barrels in the past week. I just don’t see a reason for oil to stop going up right here. There is just nothing negative to bring it back down. This will continue to kill the market because investors are going to want to get their money out of the market and into oil/gold to protect it.
The high oil prices did keep the usual “suspects” on their daily rampage today. This little bubble in oil has been creating a heck of a time for short-term technical traders such as myself. In fact, I have almost doubled my account in three days. Tomorrow just maybe the day to get to that crucial $25k mark.
I happened to oversleep this morning, but of course as soon as I sat down in the chair and got ready to trade, a perfect opportunity arose. MXC, the beast of them all, was getting ready to pass that $50 mark for the first time. It crossed the mark and then had a little blip down below $50. Fortunately, I happened to get my order activated right during the blip for a great fill price! About two minutes later the stock was trading at around $54…and I sold to lock in gains. Nice profits of around $1,850ish to start off the morning.
Close to ten minutes later, the stock broke down severely and I bought straight into it using what I learned yesterday that there are buyers below the top price. It rebounded just like I had hoped, and I sold for another nice, big profit. Now feeling that I was invincible, I made one more very stupid trade that was nothing but a gamble. The “gamble” killed me for a small $400ish loss. The amount is small, but the emotional “smack-to-the-face” is what hurts the most.
My goal is to end the week above $25k so that I can day trade freely from then on. If it happens tomorrow, great…if it happens Friday, great. The thing is, I just can’t get antsy and force something dumb like I did at the end of the morning like I did today. It is key to be patient and wait for the opportunity to come to you and not go and try to force an opportunity. If you do that, you are just gambling…which is a negative for sure. Keep that in mind.
The Market Kid
If you like that post, check out some of his other trades—HERE and HERE as to how he almost doubled his account in 3 days
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| Date | Stock | Buy | Sell | Net |
|---|---|---|---|---|
| July 23 | MKTY | $4.73 | $5.40 | $187 |
| July 22 | MKTY | $4.10 | $4.28 | $240 |
| July 21 | ZYXI | $3.03 | $3.18 | $130 |
| July 15 | MNLU | $6.37 | $6.73 | $340 |
| July 11 | IDAE | $2.27 | $2.49 | $630 |
| July 8 | ERII | $11.29 | $11.00 | $162 |
| July 3 | TGC | $2.14 | $2.39 | $471 |
| July 2 | HYGS | $2.15 | $2.29 | $260 |
| July 2 | TGC | $3.44 | $3.49 | $80 |
Total: $22,457 (
81%)
1Christopher Cianci(TIMBUCKS: $23)
May 22nd, 2008 at 1:48 pm
Been following TMK and you for the past couple months now - great stuff
2JensGould(TIMBUCKS: $53)
May 22nd, 2008 at 1:54 pm
Just for the record, big insider selling on FPP. Even the directors know the movement in their stock is unwarranted.
3Ryan
May 22nd, 2008 at 1:59 pm
Is GBR to short or wait?
4Oliver(TIMBUCKS: $32)
May 22nd, 2008 at 2:03 pm
tim, you didnt get to reply on my offer to help you translate your blog posts into a fluent german rather than some cheap and terribly wrong translated nonsense that you currently have.
5Ryan
May 22nd, 2008 at 2:03 pm
No GBR available to short…sigh!
6sonid(TIMBUCKS: $49)
May 22nd, 2008 at 2:14 pm
I had a similar experience with FPP as TMK did and it worked out good for me but lost a tiny piece of it chasing and forcing.
7MTXR(TIMBUCKS: $26)
May 22nd, 2008 at 2:15 pm
WOW, seems like i missed all the trades again by waking up at 1pm.
I need to fricking get up early!
8investorslive(TIMBUCKS: $162)
May 22nd, 2008 at 2:15 pm
Sometimes these comments don’t show post
9investorslive(TIMBUCKS: $162)
May 22nd, 2008 at 2:16 pm
I had posted this: http://tinyurl.com/3qgayw SINO is up 40%
10kris
May 22nd, 2008 at 2:27 pm
hey tim, help!.. i tried to register today and no email. i want to earn bucks!!…i registered for the newletter 4 days ago..nothing…i checked my junk email box….nothing.
11sniper6
May 22nd, 2008 at 2:30 pm
wanna see something weird? side by side charts of PEIX and XNL. Try 5 days, 3 months, one year charts. Like Dr. Evil and Mini Me, with PEIX being about 10x the cost. Then look at today’s chart, XNL hanging tough, PEIX with a little weakness.
12timothysykes
May 22nd, 2008 at 2:30 pm
guys this site is brand new, tons of bugs, email admin@ for help
13sniper6
May 22nd, 2008 at 2:31 pm
it was driving me crazy switching between screens!
14sniper6
May 22nd, 2008 at 2:32 pm
Tim, the new site is a huge improvement. thanx for the hard work.
15investorslive(TIMBUCKS: $162)
May 22nd, 2008 at 2:42 pm
SINO huge huge play today I wrote about it on investorslive.com but I can’t copy it here
Good Luck,
I wonder if we see MXC head to 29 into the last hour
16Fantom
May 22nd, 2008 at 2:52 pm
Even I made a small profit today.
One day I too will be a Jedi Knight!
17Fantom
May 22nd, 2008 at 2:53 pm
Enough small talk, do we go after the same stocks tomorrow?
18YngvaiMalmsteve(TIMBUCKS: $478)
May 22nd, 2008 at 2:53 pm
FPP keeps bouncing off support at $5.63
19schmuck(TIMBUCKS: $6)
May 22nd, 2008 at 3:19 pm
frankly speaking i will never do what the market kid did, because i can never be fast enough to catch the uptrend, i would rather stalk the stock and short the euphoria which will inevitably end. The risk/reward ratio is so much better
20timothysykes
May 22nd, 2008 at 3:21 pm
agreed schmuck….also buying on a morning dip can be very dangerous as people learned the hard way today…
21Dan-O
May 22nd, 2008 at 3:23 pm
Anyone holding PDO shorts into the close?
22Eric T
May 22nd, 2008 at 3:28 pm
damn is FPP and MXC just gonna stagnat till close?
23timothysykes
May 22nd, 2008 at 3:49 pm
anybody get in on that PDO breakdown? i was too busy writing the script for tomorrow live internet show demo at 2PM… be sure to check it out!
24Dan-O
May 22nd, 2008 at 3:51 pm
I still have shares reserved of PDO. I can’t pull the trigger.
25timothysykes
May 22nd, 2008 at 3:55 pm
shorted 300 PDO at $20, late, but i still think i can get $2-3 tomorrow
26YngvaiMalmsteve(TIMBUCKS: $478)
May 22nd, 2008 at 4:03 pm
FPP finished weak into the close. I’m short at $5.70.
27investorslive(TIMBUCKS: $162)
May 22nd, 2008 at 4:05 pm
SINO!!!!!!!!!!! up 7.82 or 56% !! EFUT style
28Rambone
May 22nd, 2008 at 4:07 pm
Tim called COIN just yesterday saying not to short it because more fluff news would come out and look what we get from Jagnotes today.
Rumor that The Scotts Miracle-Gro Co. (SMG) will make a bid for CONVERTED ORGANICS (COIN). Bid thought to be cash in the $14 range.
29theproficientinvestor(TIMBUCKS: $19)
May 22nd, 2008 at 4:21 pm
I smell a supernova…
30jack is back
May 22nd, 2008 at 4:29 pm
What is coin going to sell? They have nothing but a pipe dream
they are worth 2-3 bucks (period)
31timothysykes
May 22nd, 2008 at 4:52 pm
join me for a live video tomorrow 2pm:
http://www.timothysykes.com/20.....t-excited/
32HItrader(TIMBUCKS: $5)
May 22nd, 2008 at 7:05 pm
Okay, well I have been waiting days if not weeks to pounce on these bastard pump n’ dumps, especially PDO which has been ‘pass-off-pumped’ to all hell by the likes of Rev Shark and Superman….So, RISKY? Indeed, might get your nuts cut off, but these were showing signs of weakness that we as traders need to be able to pick up on such as a lack of bids in the market for a particular stock…The bids had been endless, out of nowhere, constant for MXC and PDO, but all of a sudden, just as the bids dissappeared from this over pumped stock market so did those from MXC and PDO…When I sensed this, I took those previously reserved shares of PDO and MXC(Trade Station Threshold Security) and stuck ‘em right in the line of fire. Today was a good day, or great. 2nd best of all time, for me.
PD0
Short 1,000 @ 29.10 (limit to enter)
Cover 1,000 @ 20.05 (market to cover, just get out!)
=approx $8,700 +/- costs of business
MXC-
Short 2,000 @ 46.50 (limit to enter)
Cover 2,000 @ 34.49 (market to cover, no finesse crap!)
=approx $24,000 +/- costs of business
Now, overall, I most likely left a BUNCH of $ on the table, but we all know that Bulls make money, Bears make money, and well, the Pigs….we know what happens to them, and that ain’t me! So in all likehood I will be kicking myself tomorrow or over the next week as these POS’s are cracked and the game is over, but I will do so while enjoying a fabulous steak dinner with my fine lady…Anyone in Hawaii, come join us at Roy’s!
33sonid
May 22nd, 2008 at 7:20 pm
so what do you guys think should we hop on the coin train for a day ? oh by the way check out the perfect fade on this guy TPML
34timothysykes
May 22nd, 2008 at 8:40 pm
new post:
http://www.timothysykes.com/20.....fpp-et-al/
35hotrocket(TIMBUCKS: $2)
May 22nd, 2008 at 8:46 pm
HiTrader…What brokerage do you use…thanks …Jaz
36pcn360(TIMBUCKS: $20)
May 22nd, 2008 at 9:46 pm
what do you HItrader mean by “previously reserved shares”? i thought one would just come in with a short order, do you mean shares need to be reserved first?
37Mike_13th
May 22nd, 2008 at 10:10 pm
SINO right off the open ,oh yeah!
http://greenonthescreen.blogsp.....t-out.html
38HItrader(TIMBUCKS: $5)
May 22nd, 2008 at 10:25 pm
Hot rocket- I have several. Trade Station, Think or Swim, Etrade, Schwab…
PCN360- every brokerage house is different in terms of what they can and cannot get for clients on a daily basis. In some cases, there are days when I can get threshold/hard to borrow shares from one brokerage and not from another. Also, brokerages that focus on professional traders and or institutional traders as their main clients, usually have access to a greater amount of hard to borrow securities. These would be places like Trade Station, Think or Swim, IB’s. Many if not all “pennystocks” have an extremely “low float” or total number of shares available/traded at any one time, which is one of the reasons for the volatile price action. Yet, this also means that once a particular security has become desirable on one end of the trade, such as PDO/MXC on the short side (every one sees they are tanking and wants to get in), these shares are quickly gobbled up by traders which leaves nothing available when someone wants to, as you say, “just come in with a short order”. You must be early to the party, so reserve these shares for later use. You do not need to always reserve shares though, sometimes you get lucky.
39pcn360(TIMBUCKS: $20)
May 22nd, 2008 at 10:51 pm
how does “reserving a share” work?
40HItrader(TIMBUCKS: $5)
May 23rd, 2008 at 3:39 am
PCN360-
It depends on what brokerage you are using, but generally, you would get in contact with the respective ‘trade desk’ of your brokerage and inquire about ‘locating hart to borrow securities”. It would be best to know first what security you are looking for and how many shares you would like if they can find them, before you call. If you are really in need, sometimes you can get ahold of investment banks, as Tim has detailed before about his trading, but the costs are very extreme for most small retail traders…Ultimatlely, it’s up to you though…