Yeah.. so I just feel like writing something. It is kind of like a rant, but also not. Maybe even informative. IDK.
Anyway, four years ago my journey as a trader started with buying local (Dutch) companies. This did not earn me much and, because I was a freakin' NOOB, I lost all my cash. Well ok. not really. But USD 200 felt painful at the time. So I panicked and took out all my money. The total loss must've been around USD 600 dollars or so. Starting cash was USD 3,500 and I took out USD 1,000 back to my personal account at that time for save keeping. Ok, so now my balance was around USD 1,900 and within two years half was lost.
After two years of practically losing, my mind shifted a little. If losing money is so easy, wouldn't shorting earn me money? And I shit you not, my USD 800 account grew to USD 2,000 purely on shorting stocks the next year. Mind you, these were actual companies (SBM Offfshore, AEGON, KPN). So I found an angle. But the Dutch marker started to improve and it is not so versatile. What was working, started to fail. My logical move was to look for stocks abroad. I found this strategy where stocks seem to move between certain prices. Like SWM.asx (an Australian equity), which moved between AUD 0.60 to 0.70/0.75 for a few months.
But this USD 100 per month gain strategy was not working for me. Not enough money for me to live on. For an investor USD 100 or 10% per month gain was a lot (or so I was told). But I needed more! More money, more risk (mind you, at this point I was trading high risk equity anyway). But I could not find a new angle and it was way too much work to keep up with these sheets I was working on. Like, it took me a whole weekend to find stocks and a full freakin' day too keep up with the changes. and I reviewed EVERYTHING. Fundementals, analysis, book value per share, turn over per share, every forecast I could find, moving averages and all sorts of garbage. This took to much time.
So I entered High Risk Trading in google and found Tim Sykes.
Anyway, A little back ground I guess. No idea why I am telling all this. But screw it.
So I was taking long positions for a few months until I started to short. Now I am finally learning to take overnight positions. Especially garbage like SPEX (on which I almost blew my account), YUMA, TEUM and today SNGX (yes, I found shares to short. deal with it!).
Now I aim to earn USD 2,500 a month and for some reason I am able too so far.
So am I the only one that has more trouble with finding break-out patterns? When I do take long positions, I buy pre-market. Sure I make a nice gain. But shorting stocks is where the real money is at. That is where I am making my money right now. Not my favorable strategy, mainly because you can blow your account. Like, if SPEX held that bastard USD 4,15 or higher I could've lost something like USD 2,500 and lost all my hard work for the period.
Also, holding short positions overnight feels like a gamble. You do not know, or have less certainty, than compared to break-out plays. Although, if you think logically, I am playing pump and dumps (right now thinly traded garbage), and they almost always fail, unless there is a catalyst.
Anyway, for this strategy, today I am looking at CAPR to buy and hold overnight for a potential gap up tomorrow. FDA approvals are always a good catalyst. I could miss out so I might short this pre-market tomorrow if there are any shares available (a big B. for shorting strategies) and ti fails. I am expecting it to fail the day after that, so I should be able to short tomorrow afternoon.
The same goes for MBRX. Contract winner which blew a while ago. This should run tomorrow as well (although, it blasted on a double contract winner last time). I might buy this, if it holds support nicely. If not, it is also a potential short.
Give me a karma if you liked this post. Maybe you learned something. It was nice to write a little. HAVE A NICE TRADING DAY! Play save, manage risk and cut losses quickly!