Was I bitter that a stupid mistake cost me between $750 and $1,000 in missed profits the first time VRML squeezed the shorts (as I posted helping other, not knowing I was already short!)? You bet I was! Was I going to let it influence my future trades on that stock or any other? Hell no!
So, after surging pretty much straight from $1 to $5, back down to $3 and then squeezing a few over confident shorts to $4 in a few days all on an ill-researched media story, on Wednesday, I posted how I shorted 1,300 VRML (all I could find) at $3.75, a little too early, but I was confident since I knew this thing would be volatile and shorts would be aggressive.
A few hours into my short, when it was a typical 25 cent profit (as you know I take too many of those) in the $3.50 range, I posted how I was gonna have patience on this one and cover under $3 cuz it was one of the few truly ideal PennyStocking Supernovas to pop its trashy head up in the past few months, even if as I also noted that this was the 3rd great shortable penny stock action in as many days (LGDI which I made $350 on and VRML round one, where I screwed up and lost $180, even while calling it perfectly for readers!)
After all, this truly was the successor to my most successful trades on similarly failing biotech companies REED, DARA, VION and PSTI—this would be the 5th king in that line of royally trashy companies
Unfortunately, taking out the trash day would have to wait as on Thursday, they issued a fluffy PR that tempted a few amateurs and scared a few shorts enough to spike this thing back to the $3.80 range, even if it was only at the market open with the rest of the day being a gradual fade right back to the $3.50 area
Going into the third day—this was clearly a long-term trade now–but without any fluffy PRs to save it from destiny, I posted how I was more confident than ever since the gradual downtrending was in place along with the wall of sellers, gradually ratcheting down the price (after all, not many people wanna buy a stock up 380% in a few days, especially when its chart resembles a midget trying to hold up a basketball player.
And after some initial buying (but no spiking whatsoever), the day was finally focused on the front line—the key $3.40 x $3.60 area that’d held for the previous 2 days…ever so slowly the bids got taken out, particularly inspiring was whenever a big buy block came in, or upticking, somebody took it out—meaning short sellers were chomping this thing to pieces so it was just a matter of time before the key $3.40 level got taken out, as I kept posting about AGAIN AGAIN and AGAIN (helping to remind my impatient self as well as others)
And then, in one fine minute at 3pm today, $3.40 got taken out, the stop losses did the rest, taking out $3.35, $3.25, $3.10 all the way down to $3.02…having already had an inkling this kind of stop loss surfing might occur, I had already put my buy to cover order at $3.05 and it got taken for a 70 cent per share, $905, 20% return in 2 days. I frigging nailed it!
I wanted under $3, but with some big buyer orders lined up there and the quickly disappearing liquidity, I wasn’t gonna risk it. Turned out to be dead on accurate as the stock dipped under $3 for a minute but then bounce a bit. Monday, Tuesday—the stock will either tank ore, stay flat or bounce (how’s that for neutrality?), I don’t care. The goal of PennyStocking isn’t to pick tops and bottoms, it’s to profit 50 cent-$2/share by predicting the meat of the move…at 70 cents/share, pretty much calling every spike a fakeout and nailing the key breakdown level and exit point, this is one of the most perfect trades I’ve ever executed. Even more important, several readers have posted they profited from this too! That makes me damn proud and inspires the Jew in me to ask for donations
(Seriously, please help me pay my badass web designer!)
Now I’m up a mistake-filled (and mistake-detailed) 56% in just over 6 months, already 6% this month…when’s the next play? Who knows! Take it one pump at a time and try not to have any expectations or deadlines. That’s TIM’s key to success. Good night and good luck, it’s nap time!