Saturday, October 31, 2009

Updating Covestor again

For a while I stopped updating my Covestor account because it just got too tedious.  With all the trades I was doing with Cy Group, it was a pain manually entering my trades each day (Covestor can't autoupdate with Cy Group).

I've decided to start keeping my Covestor account up to date again, but it will only include performance in my Interactive Brokers account.  Since I only do about 3 trades per week in this account, it will be much easier keeping things up to date.  Once again you will see this widget over on the side of my blog.



I still keep track of my trade performance in Cy Group using TradePerformance.  I will occasionally write posts showing the TradePerformance data.

Friday, October 30, 2009

How to Make 20% on One Trade

Yesterday I had the pump and dump NXTH on my short watchlist.  Luckily Interactive Brokers had borrows this morning, so I grabbed some at the open.  The borrows were gone not too long after that.

I shorted at 2.40.  It hung around 2.42 - 2.43 for a while, then the dump came.  I covered half at 2, and waited to see if it would fall further.  When it didn't, I covered the rest at 2.05 for a nearly 19% profit.


Thursday, October 29, 2009

OT: Mac vs PC Wars....Who Cares?

With the release of Windows 7, the Mac vs. PC Wars are in full force.




Now, I'm not talking about the market competition between Microsoft and Apple.  I'm talking about the war of words between the users of their products.

For example, go on any Windows 7 review board and you'll see Mac users jumping into the discussion and talking trash about the product, Microsoft, and PC's in general.

Listening to people argue over whether Macs or PC's are better is like listening to Democrats argue with Republicans.

My response to all this commotion.....


WHO CARES!!!!?????!!!!!

Seriously, why should a PC user care if someone else likes Macs?  And why should a Mac user care if someone else likes PC's?  

You don't like Windows?  Fine....DON'T USE IT.

You hate Macs?  Fine....DON'T BUY ONE.

The amount of energy people put into these arguments is ridiculous.  Just use what you like to use, and let other people use what they like to use.  There's enough room in the computer world for both.

Each type of system has its unique advantages.  PC's hold a much bigger market share, and thus have a huge variety of software available to them.  They are typically cheaper because of the immense competition between various manufacturers.  The open architecture design has opened a world of various types of PC's with thousands and thousands of possible hardware combinations.  The downside of this is trying to get an operating system that can handle these tens of thousands of hardware combinations....hence why there will always be some type of problem with every new version of Windows that comes out, because no software manufacturer could possibly be able to test their software on every single potential hardware combination.

Apples are typically more expensive because they have a closed, proprietary architecture.  This also limits the upgrade options.  However, this is also an advantage because there are not thousands of potential hardware combinations, so the difficulties that sometimes come with PC's don't happen nearly as much on Macs.  Because Apple doesn't have nearly as much of a market share, they are not the target of virus writers and thus viruses and other forms of malware aren't as much of a problem. 

The fact is, both types of systems have their advantages and disadvantages.  Use what fits your style, preference, and budget.  Who cares what anyone else uses?

Watchlist for Friday October 30th

NXTH is the only one on my short watchlist.  Good luck finding borrows, though.

Tuesday, October 27, 2009

The Way to Make 60% in One Day (If You Can Find Borrows, That Is)

If you had shorted this stock today, you would've made 60% on your position.




This stock tanked from nearly 3.50 to under 1.50.  If you had shorted it, you could've made nearly $2 per share.  Unfortunately, my broker (Interactive Brokers) didn't have borrows, but I do know of some people who did get borrows from other brokers (like Sogotrade) and banked on this play.

Look at this chart.....the very gradual stairstep pattern, with practically no red candles.  This is a stock that is being manipulated and pumped higher.  This is a pump and dump.  As the stock price gets manipulated higher, the manipulators sell into the pumping.  Once the pumping stops, there is nothing to hold the stock price up anymore, and the stock crashes in price, particularly as stop losses get taken out and panic selling ensues.

I have over an 80% winning trade rate when shorting stocks in this fashion.  The most difficult part is finding borrows; borrows can be tough to come by with some of these manipulated stocks.  While I didn't make 60% today, I did make 8% today by shorting AEMD, which was on my watchlist yesterday.

I learned this strategy from Tim Sykes, who sells a number of products that teach how to trade using this shorting strategy.  Michael Goode is another person who has done well with Tim's strategies, and is closing in on $100,000 in a year; here's a video testimonial from Michael:





DISCLOSURE I am an affiliate of Tim Sykes and thus I do make money when people buy his products through my links.  However, I would not recommend a product unless I found it valuable myself.  I don't think all of Tim's products are good; for example, read my review of ShortStocking here.  I do think his book, his original Pennystocking video, and his Pennystocking Part Deux are good products. 


TOMORROW'S WATCHLIST:  There's nothing that really looks good for tomorrow

Monday, October 26, 2009

Tuesday 10/27 Watchlist

Yesterday's watchlist turned out pretty decent.  Unfortunately I only played one (RDCM) and broke even (though I should've held).

AEMD had a nice afternoon fade but I wasn't around to play it as I was having internet connection problems after having upgraded to Windows 7; I was randomly losing my internet connection (turns out that Linksys has yet to produce a compatible driver for its WUSB600N even though they've had MONTHS to do it...I ended up getting a Linksys WET610 Ethernet bridge today and that solves my problems).

MEVT continued to tank but unfortunately Interactive Brokers didn't have any borrows.

RDCM turned out to be OK.  I shorted at $2.40 but got shook out at $2.40 to break even on the bounce.  It closed at $2.21.

CASB would've been a good short under $2.60 but I wasn't entering new trades due to my internet problems.

TMI would've made a good short but it was really illiquid; I didn't play it.

AWSL continued to tank but IB didn't have borrows.


Tomorrow's watchlist:  AEMD

Sunday, October 25, 2009

Monday Oct 26 Watchlist

MEVT would've been a great short from Friday's watchlist; I tried to short but I couldn't get filled and the borrows disappeared.  RDCM would've been good if you were quick to short out of the open, but I missed it.  I did try CASB but it didn't do much and I broke even on it.

Tomorrow's watchlist:  AEMD MEVT RDCM CASB TMI AWSL

Saturday, October 24, 2009

Position Sizing

Dr. Brett Steenbarger recently made a good post on the psychology of position sizing.  Check it out.

I know personally that I've gotten shook out of winning trades when I had position sizes that were larger than what I should've had.  I've really been paying attention to position sizing the past 2-3 weeks.  I size my positions according to risk and volatility....the more volatility, the smaller the position size.  However, I have a certain max position size that I will not exceed, even if the risk and volatility are low.  This has really been helping my trading and helping me stick with winning trades better, as well as not taking big hits when I do take losses on the more volatile plays.

A perfect example is my recent short of AUTCW.  At times the spread was $1 or more.  So I only took a 50 share position, knowing that it could easily move multiple $.  My only problem was I still got a bit too "scared" and took my profit too early.  But the small position size did allow me to hold through some morning spikes as I was short from $17.87, and at times the stock hit over $19 with the big spread.

Thursday, October 22, 2009

Friday October 23 watchlist

AWSL would've been a great short off of yesterday's watchlist, but there were no borrows.  CHFI would've been OK but you would've had to have been quick out of the open.  I did try shorting CASB but took a loss on the choppiness.

Overall a small loss today....longed a bunch of preleaders, which was OK, but also played some longs off the scrolling HOD list that I shouldn't have played.

No positions currently.

Tomorrow's watchlist:

MEVT RDCM CASB

Wednesday, October 21, 2009

Watchlist for Thusday October 21

AUTCW turned out to be a great short from yesterday's watchlist.  I shorted a small 50 share position at 17.87.  I covered way too early at 15.35; I got nervous about how illiquid it was and was concerned about a bounce where I would've had to cover at the offer (sucks covering at the offer when you have a big spread).  Thus I had put in a standing order at 15.35 so I could get filled near the bid.  AUTCW fell all the way below $12.  I made $124 on the trade but left at least $150 on the table.

CHFI would've been a great short off of yesterday's watchlist as well.  I tried to short but couldn't get filled, and then the borrows at Interactive Brokers vanished.

Tomorrow's watchlist:

AWSL (gonna be tough getting borrows), CASB, CHFI (probably some more downside to this one)


Tim Sykes recently made a post about the sketchy company NPHC.  I just made a post about their B.S. product Cobroxin in my other blog.  Check it out.

Tuesday, October 20, 2009

Watchlist for Wednesday October 21

JOEZ and USEG turned out to be great shorts off of yesterday's watchlist.  SSCCQ would've been decent as well when it fell below $1, but I had no day trades in my IB account so I didn't trade it.

Wednesday's watchlist:

CHFI ECOS AUTCW (pretty illiquid, good luck finding shares) AWSL SSCCQ JOEZ

Monday, October 19, 2009

Watchlist for Tuesday October 20th

From now on I'm only posting my short watchlists.  I don't do very well with pre-planned long watches, so I don't keep a long watch anymore (I just watch the preleaders and scrolling HOD list for potential long plays).

The short watchlist:

CHFI AUTCW JOEZ USEG FIGI AWSL SSCCQ

In my last blog post I talked about GVBP re-opening.....I covered the day it re-opened at 3 cents for nearly a 100% gain.

Tuesday, October 6, 2009

Watchlist for Wed Oct 7, and a new blog

Short:  LWLG
Long:  EMMS, FTWR

GVBP's suspension ends tonight.  We'll see if it re-opens tomorrow.  If it does, hopefully I'll cover at 1 cent or less for nearly a 100% gain.  Of course, it may never re-open which means I'll eventually get a 100% gain anyway....it's just a matter of when my IB account would be credited.

I also have a new non-trading related blog called Wading Through Shit.  In this blog, I will be exposing the bullshit that frequents the health and wellness industry.