Sorrydidn’t archive this week, welcome to new technologies and I was in the middle of a move…we’ll get better, but realize my team and I work harder than anyone else, so when you produce this many trading alerts, video lessons, webinars, DVDs, seminar and websites like and …every now and then something will go wrong…all we can do is try our best, which we definitely do 🙂
For 2 straight days ahead of time, I alerted subscribers of my 4to the importance of $12/share on Renren Inc (RENN) in watchlists saying:
My top 2 potential trades for tomorrow are to short JAMN and to short RENN. RENN must crack $12/share to trigger stop losses and even then it could still bounce since it’s not a true pump and dump, but the odds are good.
Renren Inc (RENN) had a lot of hype as the Chinese Facebook, but its price action smacks of an overvalued company which could drop into the single digits given how many failed bounce attempts its had in the $12s…potential short if it can crack its low of $12 as all these dip buyers likely have stop losses there so it could drop 50 cents to $1/share rather quickly if and when that level is breached
…and despite my moving a couch into my new NYC apartment (and it not fitting into the elevator and my subsequently having to pay the Couch Doctor $500 to disassemble and reassemble that bad boy) when the crack of $12/share actually came, I am proud to say several students were prepared and they banked:
The good news is that even if I had alerted the cracking a.) I would’ve been blamed for the drop even though it dropped entirely on its own as you can see from the chart with no alert from me or anyone else — not that it woud’ve mattered as this is a high volume stock — and b.) the 10% drop occured inside of 10 minutes so any alert would’ve been too late aka the key to success is to be prepared assubscribers were.
Before getting to the video lessons on this fully predictable setup, check out how one of my PRO subscribers (with this membership you get access to IM me via AOL or Skype all day, see all his trades, on my strategy in a few months, more than paying for his $1,500/month PRO costif you’re interested, it’s $1,500/month so it’s not for everyone) did on RENN…this guy is now up $55,000,
I am a Pro subscriber and go by the screen name “elkwood66”. I post onunder the same name. Heres a little bit on my RENN trade with a roughly $1750 profit.
I asked Tim on Monday if he was going to do a video or give reasons on why RENN was such a good set-up. He said “No, dont make things so complicated. Keep it simple. If it breaks $12 it should take ot all the stop losses and could have significant downside.” I had not even figured that out until he said that to me. Anyhow, watching the price action on Tuesday, I was unimpressed with RENN until I saw it close so weak. Right at the close I decided to short 1k shares at $12.17. I just wanted to start a position hoping Wednesday would be the crack and I didnt see much upside risk. When it opened Wednesday and the small bounce failed, I added 1k more shares at $12.03. So far all good descisions. When it broke $12 it collapsed fast. Here is where I screwed up. I added 3k more shres at $11.64ish and it bounced to $11.70. I panicked a little and took 2k shares off immediately for .06 loss leaving me 3k shares. It started down again to roughly $11.08 where it bounced again. I was up well over 2k at this point, however it did climb to between $11.30 to $11.40 where I scaled out.
I made a good descision by starting a position on Tuesday and adding early today, but I made 3 critical mistakes in my opinion.
1. I had no plan on how big of a position I was willing to take on RENN
2. I panicked to quickly after adding to the trade because I had not set any goals of what price I was aiming for
3. I didnt close the trade in the low 11s for significantly better gains because I became complacent due to no plan
Anyhow, another great set-up called by Tim. I will put more work into each trade with a better plan. I am usually more prepared, having made descisions on share amounts and money I am willing to risk. I have a significant amount in my accounts and this was a very small trade compared to what it should have been.
You gotta love that even though this guy is up $55k in a few months using my strategy and made over $1,000 on this play, he’s still hard on himself…good…no matter how much $ you make, you need to be hard on yourself when you don’t follow time-tested trading rules meant to help you.
Anyway, after three trading days, RENN did drop to the single digits so in hindsight, there was no need to cover quickly and assubscribers know I ended up profiting roughly $1,400 actually buying into intraday panics as did several other subscribers…as detailed in my video lessons for subscribers only….none of us timing out trades very well (as expected on non-pump & dumps but profits nonetheless) like true scavengers.
So watch these videos and realize this technical breakdown is a perfect example of a catalyst that creates opportunities galore…all of which will be detailed in my three-day, October 22-24th, 2011 Las Vegas PennyStocking Conference (if you’d like to stay updated with details)