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!
Posted in Bad Trades, Breakdowns, Fess Up Time, idiots, Impatience, Manipulation, Missed Opportunities, Patterns To Short, Short Selling, Short Squeezes