As I stated in a past blog, I had shorted the obvious pump and dump GVBP at an average of 37 cents. Well, the SEC quickly caught on to GVBP's shenanigans and suspended trading today until October 6th. If and when it does re-open for trading, it will most likely open around 1-5 cents per share, and I'll walk away with nearly a 100% profit.
Unfortunately I used almost all the capital in my small Interactive Brokers account to short this, which means my capital will be tied up until October 6th. So for now I'm stuck trading only out of my Cy Group account. This also means I won't be able to trade any OTCBB's or pink sheets since I can't trade those with Cy.
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Welcome back, nice seeing all this robust posting again the last couple weeks, and thanks for the TY card via snail mail. It's the only physical evidence of my cyber blogsphere world.
I'm having trouble with focus and direction in trading, not sure what to do, but not giving up. Can't even find time to really paper trade....we'll see.
Good job on getting shares, I couldn't get any on IB. Did you just set a limit at the price and wait for shares?
Interesting.... it's the first time I heard of something like this. But it's good to see that you will be coming out ahead on this :)Your money will actually just be tied up for a couple weeks..........
good trading :)
Androo,
Shares were available the day that I shorted it. However, the shares were gone by the afternoon.
Thanks for the comment, Quentin!
Hey, Charlie,
My trading has been up and down too.
Here's what I'm doing to correct that. First, keeping stats of my trading using TradePerformance really helps me. It helps me figure out what is working and what isn't.
With that software, I found I do really poorly from the long side but great from the short side.
So, recently, I'm mainly just trading shorts with real money, and just going long with paper trading (with a few exceptions like AIG) until I'm consistent from the long side. I lost some discipline yesterday and took some losses on longs again as I played some longs with real money that I shouldn't have played.
What I'm also doing is dramatically reducing how much I long the preleaders. I find many of them will give you fake breakout moves. I now won't even bother longing anything until after 7-7:15 AM PST....I want to make sure there's a clear trend in place.
I'm more focusing my longs now on Scott Fornham's type of longs....the high priced day rangers. I look for a clear direction, good volume, and a clean chart. I watch the scrolling HOD list for a ticker that hits it multiple times, which tells me it's a potential momo candidate. I'll pull up the chart then to see. For example, HRS is one that I caught yesterday using this method. You really want to pay attention to the volume, though, and make sure the chart is clean and not choppy. For example, a chart like GS would be an example of a choppy chart that I would avoid. And regarding volume, you want something typically trading nearly a million shares or more. Otherwise you can get caught in stocks like HAWK (which i did on the 17th) which will suddenly show a big spread and drop quickly on you. You want clean intraday action.
Even on the preleaders, I'm trying to avoid choppy charts. It's too easy to get caught in a pullback. And you have to keep wide stops on the choppy stuff which I don't like doing. I'm also moving away from trading the lower priced day rangers and sticking mainly with stocks over $5 (like YRCW yesterday).
Hey Yngvai,
I'm curious who you use for your HOD/LOD list... is it Scott?
Looks like adjustment of method is always part of the game. With the much less time I have to devote to trading practice now, I'm considering putting on hold my "trading the tape" approach for something that will yield some consistent solid results allowing me gains that to "get me in the game" full time. Narrow my focus then study the more difficult method as time goes on. We'll see how it goes. I know trying to play every potential trend is wearing me out. Looking for one or two opportunities per day with a high probability of success might be where I need to start.
Seems like you are holding your own as a full-time trader. Glad to hear it. Someday I hope to join you.
bc,
I use Laser's HOD list.
Can't say that I'm holding my own as a full time trader though. I've had 3 red days in a row, and my Cy account is at its lowest it's been since April (although my IB account is up).
I really struggle momo trading from the long side. Sometimes I do awesome, but sometimes I make some critical mental errors that really cost me (such as today....made a couple big mistakes with AIG and with RODM).
So I'm having my doubts myself whether I'm going to be able to trade for a living. The only thing it seems I can trade with reasonable consistency is Tim-style shorts. But there's not enough of those opportunities to be able to make a living off of it.
Sometimes I feel down because I've been working hard at this and it's just not clicking from the long side. We'll see.
Hey Guys,
This might be off topic, but i am thinking about joining Cy Group and I was wondering what your experiences have been? Any info would be much appreciated.
Thanks
Hey Guys,
This might be off topic, but i am thinking about joining Cy Group and I was wondering what your experiences have been? Any info would be much appreciated.
Thanks
Yng,
I find that I also do better when I trade stocks over $5..........
StratiG,
My experiences with Cy have been positive so far. They sometimes have better borrows than IB if you like to short. You can't trade OTC or pink sheets with them, though.
Yeah Quentin...HAR was a good higher priced momo trader today.
My really big winner today, though, was MJN...shorted it when it fell below 49 and I covered at around 46
Some friends of mine alerted me to an OTCBB stock that's heavily pumped. Since I am in the industry and this enables me to know that this stock cannot last, I think its a worthwhile consideration to short it. Is Interactive Brokers the best broker to go through?
Thanks.
Interactive Brokers is one of the few brokers that has decent availability of OTC stocks to short. Sogotrade will sometimes have borrows if IB doesn't. Thinkorswim will also sometimes have some but tends to be the worst of the three.
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