TIM $14,063 (down $85 on the day)
100% Cash, No Positions
When I shorted 200 shares of Force Protection (NasdaQ: FRPT) on Friday afternoon at $11.20, I was expecting a nice gradual downtrend, followed by a Monday morning gap down to the $10.25 range or maybe even panic to the single digits. I was half right, but, similar to hitting a pool ball into a pocket you didn’t call, I was not rew
arded for my efforts.
I got my Friday afternoon downtrend to the $10.60 range, but over the weekend, the longs did their best to make their case on the message boards that the potentially crushing news was overblown. In the end, they lost as FRPT finished down 11% at $9.60, but not before an early morning spike to $11.80 scared me and a few other shorts out of our positions. I covered at $11.25 (before the morning spike), for a devastating (not so much) loss of $25 including commissions.
It was a good exit because I don’t like spikes and as a short seller, you can never tell how long they’ll last, so it’s best to get out ahead of them. Sure, I don’t like the fact that I missed out on the gradual drop throughout the day, but on the other hand, I showed some discipline for once, which is very rare for me. And, it’s just the latest example of me showing how I’m not that great a trader (I’m 1,000% honest when I say you can do better than me).
I’ll be speaking at the University of Arizona the next few days, so I’ll be MIA for the most part–although SOLF is looking mighty strong and might lure me back to short a few shares. We’ll see…