So I have had some great wins this week with shorting URRE XGTI IMGN, but the trades that I didn't do so well on are my losses. I had some range that I was willing to give the stocks to move but instead of cutting my losses when they got to those levels I decided to add to my position to get a better average. Then when they kept getting further away I was like well I will be able to add since I still have small position. An example of this is ETRM probably the worst trade I have had. I actually bought the break of R/G perfectly at 15.30 only 100 shares and made 1.50 on this trade then I tried to dip buy after the high was put in around 17.60 this is where the problem began I bought 200 shares thinking that it would go higher on the next ramp up. Then it kept dropping I was comfortable with the size I had so I held on. Then it kept dropping I was like I will average down. So 16 comes and I doubled down so now 600 shares with 16.41 average. Well it kept gradually going down. I was not panicking yet I was thinking that this could get going once momentum changed. So comes noon and the stock is about to go past 14 now and I was like if I doubled down now I could get my average a lot lower but I needed to go to the bus stop and get my daughter so I didn't want to chance the fact that this could break 14 then go past the low of day quick and I wouldn't be able to sell fast enough because I wouldn't be able to watch it. So I had to make a tough decision and sell the stock for a loss of $1462 on only 600 shares this was so tough to do and I really wasn't expecting such a big loss on little amount of shares I thought that I was going to be able to get my average down and be able to come out with a big win. So now in hindsight I could have averaged down and made a good $1 a share but this isn't worth it and I don't like buying stocks in the first place and now I really don't like averaging down to try and save a trade. This was a good learning experience but still hurts.
Next is TBIO I knew that I shouldn't short overnight but I know how ETRADE is and shares would be hard to come by the next day so I decided to take a 2000 small short overnight which was another mistake. After hours I was on my way to the gym and the stock was rising and I was like its ok not past the high yet and then the high of day breaks and I still don't cover which this was my risk. The stock keeps going after hours and I don't cover; soon I am down almost .45/share and I still don't cover. I was waiting for the stock to have a nice pull back but never happened. So the next morning premarket its close to its after market highs at 1.51 and I am like if this breaks I am going to have to cover because I don't know how high this can go. Well it breaks and I have to cover at 1.54 such a bad trade instead of losing just .20/share I lost .48/share such a bad trade I should have cut losses when it didn't go down in after hours and get out of the trade when its not going your way. I also tried shorting at open and ETRADE was out of shares so I lost my shares and traded this stock horribly. Moral of the story is I need to cut losses quicker and I need to think about my broker and switch to center point so I can have better borrows and get the borrows when I want instead of thinking ahead and risking so much pain.
Then comes GLBS on Friday it doesn't come out with PR for the dilution news and shipping sector gets hot again and there are lots of shorts in this stock I am short 500 shares at 3.78 as of Tuesday. The stock starts spiking quick halt. Then when it reopens I take another 500 shares short at 4.78 thinking that I will average up because this stock is going to fail eventually. Well rehalt and the stock breaks 5 so the next time I end up buying 1000 shares at 5.13 just in case it continues going higher I have boxed my position and the most I will lose is the .70 inbetween my short and the box well the stock drops to 4.30 the place I should have bought my boxed shares and I panic and sell on the next little spike at 4.50 down 600 then the stock ramps back up and I take more shares short at 4.80 so now I am 1500 shares short 4.45 average and I decide that no matter what I am going to hold onto these shares because I know that eventually this is going to come back down. Well the stock goes to 7.35 and then gets halted at 7.24 pending news. I am happy that the stock got halted but still nervous because I am down big $4200 and that is the biggest number I have ever seen either + or - so I am just glad that they had bad news and either way it was bad news thinking about it know either they were going to dilute shares if the parties agree or what actually happened that they couldn't get the private parties to agree to the offer of shares around 1.60 so this is even worse news for the company because they couldn't even give away shares for a private company to invest in the current company so this stock should drop on Monday back to the recent lows in the 3's So I feel better about this trade now that I am only down 600 but I still didn't like being down this much. This goes back to the broker problem I knew that Etrade was going to run out of shares quick and they did by the time the stock was over 5 Etrade was out of shares to short. So I was glad that I had averaged up my short but not enough and I knew that I couldn't cover because I couldn't get back in. This seems to be a problem that I struggled with this week in knowing that if I covered I wouldn't be able to get back in.
All in all I finished up $1320 on the week and I am short ETRM 100 shares at 20.20 holding for the long term as I think this stock will go back to the 5's. I am short 190 shares of DFFN at 5.85 waiting for this to go back to the low 4's since its a small position I will hold for a while. Finally short 1500 shares of GLBS at 4.45 hoping to cover this week sometime in the low 3's
Thanks for reading and leave comments if you want to
Thanks Again and Happy trading hope 2017 is the best trading year ever!!!