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.

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

Tags: Decent Trades, Guest Posts, Patterns To Buy, Risky