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There Are Two Sides To Every Trade…Lessons From Orleans Homebuilders (OHB)

August 7, 2009 at 8:00 am
by Timothy Sykes

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Yesterday Orleans Homebuilders (OHB) not only showed why trading penny stocks is soooooo predictable, but also reinforced many of the lessons my instructional DVD packages teach:

Namely that when a stock I short doesn’t breakdown as expected, I don’t sit around and reason that it should drop eventually, I GET OUT ASAP WHETHER I HAVE A SMALL LOSS OR GAIN.

Because as I wrote to TIMalert subscribers the day before this rather impressive low volume spike:

8/5
OHB just keeps squeezing stubborn short sellers who haven’t learned to cut losses…they had positive debt news and the stock is now at $4.50…guys, I’m sometimes wrong, it happens…but to keep adding to non-pump & dump shorts is usually a mistake…that’s why I take my medicine quickly (sometimes too quickly), lesson learned for everyone on this play…I ain’t shorting it anytime soon, unless we see a big short covering spike to the $6s at least

I even underestimated its spiking potential, but I was shorting the thing at $3 (I got out when it held support at $2.85ish for a miniscule profit, more importantly, protecting myself against spikes like this)

Some TIMalert subscribers have learned as they actually bought this short squeeze and profited:

Happened just like you said it would Tim, made $562 buying OHB on the squeeze, thanks! I’m about to pick up TIMfundamentals with these profits!
-George C.

My DVD students have learned these patterns swing both ways, profits can be made either way! (as this turned out to be a good short after the spike too and TIMalert subscribers profited there too:

Shorted OHB at 5.43 down to 5.15 for 7%. Afternoon fade!!!
-bearnine

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  • Anonymous

    These low floaters can often squeeze pretty easy (like MXC and PDO did). I’m still watching OHB for a short. Tried a tiny position on what looked like a fade in the afternoon but it was another fakeout so I got out quick with a tiny loss.

  • yngvai

    These low floaters can often squeeze pretty easy (like MXC and PDO did). I'm still watching OHB for a short. Tried a tiny position on what looked like a fade in the afternoon but it was another fakeout so I got out quick with a tiny loss.

  • yngvai

    These low floaters can often squeeze pretty easy (like MXC and PDO did). I'm still watching OHB for a short. Tried a tiny position on what looked like a fade in the afternoon but it was another fakeout so I got out quick with a tiny loss.