One Of The Worst Trades Of My Life & Still A Solid Profit: Behold PennyStocking!
Posted by timothysykes on Thu 12th of Jun, 2008 12:24:06 PM
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You know how I always say wait for ideal opportunities? Well today was one and while I made $700, I screwed it up completely—latest proof that if u stick to these kinds of plays, its sooooooooo tough not to make money:
When a piece-of-cow-dung-type company (just look at the chart, little research other than that needed) like South Texas Oil Company (STXX) spikes up…for any reason…you gotta get interested in shorting it. When similarly foul smelling stock promoter Lebed is involved, the BullShitometer goes off the charts and you just gotta reserve shares ASAP
Well that was the thinking that made me short 1000 shares of this stock yesterday at $4—mistakenly believing I got a good execution since the volume was pathetic and the bid was $3.40, I figured I’d scalp it for an easy 30-50 cents/share…unfortunately, the bid caught up and shorts like me got squeezed to the $4.50 range (thankfully the company is so bad, even stock promotion couldn’t get it up much more than that!). Displaying some newfound patience/conservatism, I controlled my losses and covered at an average of $4.22, a $250 loss, but not bad considering my impatience/stupidity at getting in in the first place (I love how several PennyStocking DVD students commented/emailed/IMed me I was wrong for getting in—at least I’m a good teacher!)
This morning’s immediate short squeeze up to $5.50 made me proud that I took small losses but disappointed that I didn’t go full throttle PennyStocker wiseman and buy into the strong close yesterday…ah well, buying ain’t my bad baby, today’s squeeze would be a perfect entry.
Of course, I saw some big block sells at $5.50, a weak bid and low volume so impatience got the best o f me, again, not waiting for a true wall of sellers or an afternoon fade, I plunged in shorting 1,000 shares at $5.35…stock went down to $5 within a few minutes, but I wanted more than $350 in gains so I held…(if and when over $25k, I’ll take 35 cent gains all day long, another strike against SEC bin Laden as I can’t exit and re-enter freely, and as would be the safest option…that’s right Osama bin SEC, you and your screwed up ideals make this world more dangerous, that’s why you’re a terrorist!)
Spike again breaks $5.50, up to $5.80, at which point I reserve another 1,000 shares to short, no question in my mind, I’ll average up as this has sub $5 written all over it (except for a few big buy blocks, the level 2 bidders showed no signs of interest)…big block sellers enter, gradual decline, gradual decline, I short another 1,000 at $5.30 as we gradually take out the big bloc buyers…$5.15, $5.02, $5…then at $4.75 x $5, I tried to cover my 2,00 at $4.76 then $4.18, nada, a wave of selling hits, but my order isn’t in, as I’m changing the limit around too much…idiot
Now risking $10k is too big a bet for me—I doubled up cuz I’m sick and tired of being under $25k but I’ also trying to show you guys to trade safely so this was far too big a position…I start getting worried as the selling slows, I say screw it, cover, limit of $5, I get it all at $4.99, profit $660.
Stock continues fading, but I turn off my software cuz I’m out of trades for today and I need to write the script for my 8-hour marathon LiveStock show tomorrow 9-am-5pm…uhh what a bad trade! My question is how the f$#@ do 90% of traders lose $ if I screw up so bad and still bank…the answer is undoubtedly PennyStocking !
And I’m such a bad timer that I need a stock to move $1 just for me to make 30 cents/share! The good news is that most of you are probly better than me, so think of my trading as worst case scenario. Seriously.
All told I made about $400 on STXX, after commissions, on this perfect play, which is a travesty…makes me physically ill just thinking about it…this is an easy minimum of $1,000 profit-type setup…even for retards…even for illiterate people…on only $5,000 used—either through buying for into the strong close yesterday/selling this morning for $1/share or shorting this morning’s spike and covering for $1/share within an hour…good trades might even be able to play it both ways and make $2,000+ or just hold short as I write this, just one hour after the trade, the stock is now at $3.50, meaning $3,000 in missed profits from the short side today alone! Anyway now back up to $18,910, just $400 off my highs, up 6% on the month, up 52% in 7 months…friggin pathetic in the sense that I’ve sucked so bad and even more importantly to you guys, this kind of return is actually above average in this joke of an industry!
For shame Sykes, for shame…let’s hear how you guys did, cheer me up with your profits!
Now you can Twitter any questions/comments to TIMhelp and obviously you can follow TIM on twitter too!
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TIM Alerts
View All| Date | Stock | Position | Ideal Exit | % Gain |
|---|---|---|---|---|
| Nov 24 | KVHI | Short | $3.70 | 18% |
| Nov 20 | STSX | Short | $3.10 | 11% |
| Nov 18 | PERY | Short | $3.75 | 25% |
| Nov 11 | IIJI | Short | $2.80 | 5% |
| Nov 6 | CVI | Short | $4 | 15% |
| Nov 5 | MECA | Short | $1.95 | 51% |
| Nov 4 | CVI | Short | $4.81 | 4% |
| Nov 3 | NAK | Short | $3.20 | 5% |
| Oct 29 | EVC | Short | $2 | 26% |
| Oct 28 | HSNI | Short | $6.80 | 7% |
| Oct 28 | HSNI | Short | $5.75 | 4% |
November: 9 alerts, 15% avg gain
October: 11 alerts, 14% avg gain
I made $0 - TDA didn’t have any shares to trade.
Will a call to TDA reserve shares, and/or help me short the way TOS does?
It’s really jaw dropping to think on $10,600 risked you would have a 35% return with a $3.50 cover. It would take you 1 year in the bank with a 100K to achieve the same results without the adrenaline fix either.
I know the 2 by 20 fees are gonna come in soon. haha Or you might expose us to the Stephen Cohen 5 by 50 fees.
check your TIMTRADEs, you have it listed as a loss
profit and loss thus far since joining TOS:
ROYL +476 long position
CRDC -86 short position
STXX +110 short position
(all figures after commissions and fees)
So how the hell is GLDD up today? Easy short.
keep it up balls, check out GLDD right now, it’s mystifying me.
Get your PEIX while you have a chance. This is a gift at these prices. Barrons put out a story that this could rally big this year. Can’t believe I was able to steal some at 2.26.
yes rambone, 35% drops in 1 day are whats needed for me to make 7%…fucken pathetic
There they go DSL and MBI tanking. Fake fluff rally on BS Morgan Stanley calling the bottom for financials. The ex partner of Soros is short C from 50’s and said he wouldn’t cover till it hit 10.
I feel the pain- my mistake- was my inability to get familiar with the way TOS work as far as shorting trades, other wise it would have been a perfect entry for me around 5.70ish- then I would have held longer….but by the time I got on the phone with TOS, to execute my short at 5.20- i just closed it when my profit was about $340ish—- ohh well…. next time.
Hey, congrats all you guys on your plays! I’m proudly green to all this, been learning a lot just by reading for awhile, and Tim, wil definitely be getting your DVD when I find $297 lying around.
RAMBONE I went long on PEIX at 2.25 —– I
Rambone, nice call on PEIX, I got in at 2.30 for 8k shares.
The bulls are definitely showing.
More risk the better the reward….. no reason why PEIX should be trading around 2ish
Are most traders on here adults basically being paid to day trade at their regular 9-5?
i always hated my messed up schedule at work, but recently i’ve learned that it benefits me greatly as a trader. off wed and thu. all other days work from 4 am to like 12 30 or 1 pm. so i can catch a lot of trading hours in the comfort of my own home.
<~~~24, I work for a Custodian Bank 8-4….. If they paid me to day trade, I would love my job…but since that is not the case, I can’t wait until I am able to do this full time… So I can be like TIM trading in his bathrobe
Thought I’d share why all the ethanol plays are down. Good to know reasons for moves.
NEW YORK -(Dow Jones)- Shares of ethanol companies plummeted Thursday after a Citigroup analyst said clients should sell those stocks in the wake of flooding in the Midwest, which has damaged crops and is causing corn prices to spike.
BIOF, VSE, and ADM were included in the downgrade.
Tim you beat me if it makes you feel any better. I only made .32
hey tim:
u r featured @finance.google.com under blog posts :-)
http://finance.google.com/finance?q=NASDAQ%3ASTXX
missed out on this on cause no shares to short 4 me :-(
DSL cover at 4.96 from 5.35 average.
MBI cover at 5.51 from 5.90 short.
Holding PEIX long. When analysts say sell I’m buying as long as the news isn’t bad and I think Citigroup is manipulating the market as they are the only ones to issue a downgrade on the group. My 2 cents.
Jumped on the PEIX bandwagon @ 2.32.
HYHY just spiked BIG TIME. Take a look folks.
Covered my average $5.86 MBI short for 3000 shares at $5.5099/share for a profit of over $1000! Woo hoo!
Still long on Superman’s pick ESIC for 1000 shares at 3.91/share (i think…)
Why are you guys buying PEIX?!?!?!? The midwest just got flooded! Crops are ruined! Long ethanol plays are ridiculously stupid!
I covered a little while ago after reading that farmers cannot put corn in the ground quickly enough.
Sold Short 700 OXM @ 22.7201 yesterday
Bought to Cover 700 OXM @ 21.9099 today
Not bad for a real company.
It’s definitely on my watch list though, I’ll gladly play the momentum
Shorted FRBK against Tim’s post earlier. It is not a fluff, so it can not go straight up for more than 3 days, it has showed the sign to go back down.
It’s an oldie, a goodie, and a POS. COIN is flirting with the 10 day resistance of 7.25. If it can close above that number I’m in for a gamble trade. It has consolidated at 7ish area so downside on this trade is $.25 in my opinion to $.75 upside.
Reserved 400 shares HYHY, whites of their eyes, whites of their eyes
Jeff- I am only long this until the end of the day- I believe I can get a good .25-.30 off of this play…per 5k shares- if it looks even better, I will hold until tomorrow
What is keeping GLDD up?
Ethanol stocks will come back…its almost certain. I agree with rambone. Get it while its a steal. Count me in. Come on you hillbilly farmers and plant that corn already. LOL
tim & jeff congrats wish i would have been there with you guys but was on the phone w/ TOS during the entire drop figuring out wtf happened w/ my trade
Imsmith, Are you referring to HYHY?
No, PEIX
Up $800 off of my PEIX trade so far….entry was 2.26 5k shares
MBI busted 5.50 support. No position anymore for me but logic did prevail. Wouldn’t doubt a sub 5 close. The market gains have been sliced in half. Every spike in the financials is being sold and shorted. Financials are toast for several years to come.
Look at our little gem PEIX. Did someone feed him Viagra.
missed the squeze on CRDC, i was at lunch…. oh what a day :)
GS, Morgan, and Merrill are starting to turn.
Let’s see how this affects FRBK.
Jeff,
Don’t think like the majority. To be a good trader you must have contrarian thoughts. This is why Tim is a great short seller. I won’t sell till I see 2.50 minimum. Been around too long to know when I see analyst manipulation. FSLR is a perfect example getting upgraded at 310 only to crash down to 240 3 weeks later. PEIX is very oversold. Downgrade wasn’t on PEIX. PEIX has a $5 price target from the S&P. A lot of the selling pressure recently was because Cascade Investment (Bill gates) has been liquidating their positions. At 2.30 a share the risk to reward is highly in ones favor. To each his own though.
Trader_MIT, how many FRBK you shorted today? I averaged up from yesterday’s short position. It is not going to go anywhere but down from here.
Ryan, I’m not touching it right now.
Rambone has a point…
corn futures up for the 7th straight day.
In a few months the situation will be corrected in PEIX has incredible upside.
u guys asked for it:
http://www.timothysykes.com/20.....ed-to-you/
Long COIN at 7.27. Max 1 day hold. Hopefully gapper in the morning or I sell at a loss before EOD.
Now I’ll take a small short position @7.010; I like that spread close to .05