So far for August I'm up 28k for the month. Last month was up 11k. Pretty crazy how everything is happening so fast. I'm still working hard and learning as much as I can outside of market hours . Reading non-stop (Sold Short by Manuel Asencio right now). Audiobooks (New Market Wizards is what I'm listening to at the moment), watching Tim's DVDs (New Rules of Pennystocking the past couple days), and getting as much screen time as possible.
So here are my trades for last week:
Monday, August 24
In general, Monday was disappointing. I had a few good opportunities but just took small chunks of each move. If I had some more focus, I could have had a big win with less trades. Overall up around 1.5k though, so that's cool to get some lessons in while having small wins.
MOGU
MOGU was a Chinese fashion play that was coming off a big move the past few days. Tim Lento went over it in the webinar and I felt comfortable with it being "garbage enough" to short it. The float was decently high (36 million), the run up seemed over (now just dead cat bouncing) and it was doing a little pre-market pop from the previous day's over-extended close. I decided to short 3000 shares and hold onto it before the market open. After shorting it I realize that it was earnings day and I panic and get out for a $450 or so gain as it dropped a little. However, the earnings already came out about an hour or so before and they were bad. Since, it being a Chinese company, I still felt uneasy about it as the earnings were "unaudited" because it's Chinese of course, so I felt ok getting out. The stock continued to drop and I would have had a nice gain. Next time I should just follow through if the earnings are bad regardless of audited or not... bad earnings is bad earnings, if they admit to it being bad with unaudited, that's probably an indicator that the earnings are even worse in reality if you think about it. Good lesson here.
PTI
PTI had merger news which I found to be pretty weak and unwarranted for a big spike, which it had in the pre-market. It has a mid-range, large float which I like (44 million) and was hitting clear, heavy resistance from the recent past and also from since March. I felt comfortable shorting it and waiting for the drop. It was a slow pre-market, so I was looking for quick easy in and outs to hopefully be done for the day pretty early. PTI was one of those.
BPTH
BPTH was coming off of a big run up from the previous day (Friday 8/21). It had no news going for it so I felt the rise was unwarranted. I also though it was another stock I shorted in the past, which was a pump and dump. I was confused, but still that was irrelevant as the stock was up on air. The day of the run-up had alot of volume, so I figured it comes down easy since no more volume and no news. I was right, but the float was small (3.65 million). It was a slow day, so I was looking for an easy short. I got it.
IBIO
Not sure why I shorted this one. Sure it was up on no news and float was high, but good thing I got out in the pre-market, as it just ripped and ripped. This goes to show that when you have a chance to get out with a couple hundred bucks loss in the near term, you just take it, as IBIO didn't come down all week and hovered around this area and then some. The area I shorted was being used at support. Lucky to get out for $200 gains.
THMO
THMO never holds spikes. Float is 4.3 Million. Was up alot in the pre-market on low volume and no news so decided to take it short. However, I caught it late from when it was higher. I had a chance earlier, but over looked it when it was in the 6's. This goes to show you that all you really need is one solid pre-market spiker that is up on nothing, just like THMO was. Could have been a 2-3k winner if I wasn't distracted by my other plays I made. This is why trading less is better. Trade less, more opportunities will present themselves and things will be more clear. Over all $100 bucks here...
Tuesday, August 25
Just 2 trades for Tuesday.
CAAS
CAAS was a Chinese auto play that had a share buy-back program on the news that the board approved for shares to be bought back at a price no more than 3.50. I felt this was a nice risk level as I started to short in the 2.90s and the stock was down from 3.60 in the pre-market. I had very good conviction about this and figured it was an easy trade. The float was whatever (8.5 million). The stock was a bit illiquid, but with having pretty small position, I figure it was a stress free trade. Closed this one out with 1100. Not bad.
RNWK
RNWK came out with some news about napster aquisition. Apparently they were a 3rd party to the deal and received a couple million because of it. The news caused the pre-market spike and it doesn't hold spikes well from previous history, so I decided to short. It came down gradually in the pre market and I got out for decent gains. In the near future I need to start shorting the morning spikes after the dips and watch until it crosses VWAP. 22 million float, gotta start shorting morning spikes on these pre-market failures. 1.1k gain.
Wednesday, August 26
WORX
WORX, scammy stock that was up on a bounce on no news. decided to enter in relatively small and covered when I got my small drop and didn't feel like waiting for it to crack further. Also, IB ran out of shares to short so I couldn't average in. Ideally, I would have loved to re-short it. In the future when I open up a Cobra account, I will play stocks like this more. In the meantime, while I still am learning and growing, I'm OK with IB not having shares for a lot of stocks as I don't want to be jumping into everything.
PLIN
PLIN was a compensated pump and dump. I was thinking to just be done for the day as I was up $1k and not seeing much to trade in the open. Then lo and behold I start getting texts and emails for good 'ol PLIN. Earlier in the year they were pumping it non stop and the CEO even paid Small Cap Voice to get an interview on the podcast. PLIN is a Chinese pork company and just all sketch. I looked at the previous highs from a week or so back and saw the 1.20s/1.30s tons of resistance. I figured I can wait until it spikes to get in. I saw shares on IB drying up and I got too anxious and shorted too soon. This should have been a big winner. Instead I got a small $500 win. It was my biggest size ever as I had tons of conviction about this stock as I traded it short on basically every pump in the past, even when I was under PDT. I knew how the price-action moves all too well, the filings, history, everything. I kept averaging up and got 20k shares short, my biggest position ever... I gave myself the 20k limit and it was too soon. I covered on the first pull back, chickening out and since I was so big, I didn't have any patience to ride the rest of the spike and drop. Next time don't short so soon and short 100 lots until gets closer to top resistance. Not a big win for such a large position, but definitely got some good experience and lessons from this one.
IBIO
IBIO took another shot at this BS stock as it was up a lot. I got my pre-market exit and was up around 1k for the day. As my account grows, I can get more aggressive with shorting the first hour of the market open or so as this stock bounces. For now, I don't need to be so aggressive.
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