Holdings > Holding Rationales > How I Screwed Up These Two Nea...
Holding: BSHF
TimothySykes [34936] 
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| Symbol | Sector | Return | Exposure | Trades | Last Trade | Status |
|---|---|---|---|---|---|---|
| BSHF | Water | -2.36% | n/a | 4 | 30-Apr-08 | Prior Holding |
02-May-08
How I Screwed Up These Two Near-Perfect Calls To Sell Short
Holding Rationale for BSHF.
Take a look at my latest two trades???shorting 1,200 shares of probable-fraud spam-happy BSHF into a morning dip at $2.55 and 1,000 shares of failing business-so-let???s-float-a-takeover-rumor VM into a nasty slightly negative close yesterday at $4.01???both of which tanked 15%+ within a few hours of market action of my shorting. Great calls to be sure, but I somehow managed to screwed both up–and judging from the comments, I’m glad many of you guys did better!
Unfortunately, the BSHF pattern appeared the day before this new website went live and since it didn???t tank in the early morning EXACTLY like I wanted, I covered for a $75 loss since I had a million things to do to make the launch. Didn’t feel guilty about it until later in the day when it tanked 50 cents/share in a perfect representation of a spam stock falling apart! Sad sad sad, but one of those rare unavoidable situations.
I have no excuse for taking quick 5 cents/share profits on VM–just my ferret-on-crack-like impatience–same exact breakdown pattern???actually an even better pattern considering BSHF hadn???t had a negative day yet???I just got scared out by the fact it didn???t tank as quickly as I expected (as I originally posted pre-market HERE)(notice I even anticipated a morning bounce ughhhh!)
When the big tank came later in the day, I couldn???t re-enter due to buying power restrictions, just the latest example of how absurd the pattern day trading rule is, and certainly not the last.
In both cases, I was right to take short positions aiming for morning panics, but the stocks didn???t act EXACTLY the way I wanted and I???not being patient/having too much other stuff to do???played it safe and got out, basically pathetically losing $50 between the two.
The good news is we know this happens with me–far too often–so you have two choices: a) you can play it safe like me and either breakeven or take small profits or b.) have some patience, take on a little extra risk and hold longer, seeing if this strange pattern is really all it???s cracked up to be.
Either way, I think it’s fair to say I???m beginning to prove PennyStocking, and more specifically this one pattern, is viable cuz it???s not your typical-money-losing strategy (as 90% of traders unfortunately experience) and it CAN be played using very little risk???smack in the face of public opinion regarding penny stocks and short selling, let alone this combination of the two.
So, next week, no traveling, no more website bugs, my head will be clear and I???ll look to play similarly worthy opportunities with the goal of not only enriching my readers??? trading accounts, but also own account!
Posted at 14:22 in Holding Rationales | Permalink | Top
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