Easy Short Plays: Short Selling Hyped Up Failing But Spiking Biotechs The Sequel
Posted by timothysykes on Thu 10th of Apr, 2008 08:05:49 PM
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Last night, I posted about how excited I was to short another failing biotech into a ridiculous penny-stock-promoter-fueled price spike. Just like the last time, I wanted a 25% drop in stock price, but I didn’t get that, the price action just didn’t play out as I wanted it to—a decent 8% drop, but no big freefall. I still made $180 today off my wrong thinking, so life could be worse.
After an initial 15 cent spike to $4.67—not scary at all cuz it was just one big buy 14k buy order (what is it with these guys, other one at $5 yesterday) that got taken out quickly—the question was could we take out multi-day support at $4.35-$4.40…most of the morning it couldn’t so I covered 700 of my 1,000 shares at $4.40, a disappointing 10 cent/share gain…then it bounced, then very gradually it declined, but still didn’t crack, so I covered my other 300 at $4.37, then gradually…so gradually…$4.35 got taken, then $4.31, $4.25—I re-shorted 1,000 at $4.25 looking for a domino type fallout from stop losses getting taken out there, then onto $4…
But it never made it to $4, there were big block buyers at $4.05, $4.10, $4.12—forget that, I covered at $4.15, another pathetic 10 cent/share gain…this thing is just too illiquid/slow moving for me. When I say domino-effect stop-loss-induced-panic-selling, I want the intraday graph to look like this:
But I couldn’t find shares of NCEN to short. Oh well. Bsides, after shorting PSTI at $5, a normal person would be up $800 right now…but I have the patience of a ferret on crack. I’m serious, a 2-day coma patient would’ve shorted at $5, gone into a coma and woken up here at $4.23 and cover their position tomorrow probly around $4 (to spend the profits since they’re so happy to be alive) and yet for all my mistakes, I’m up just over $500 on it…all hail PennyStocking!
Might re-enter again tomorrow, might not, this stock is sure to get even more illiquid and I don’t have the excess capital lying around to wait for it to really dump…next!
Now you can Twitter any questions/comments to TIMhelp and obviously you can follow TIM on twitter too!
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Other Websites Referencing This Post
- Scanning The Horizon For Worthy Stock Trades | Timothy Sykes - Stock Trader, Author, Entrepreneur
- Short Selling Penny Stocks: Decent Profits But The Mistakes Remain | Timothy Sykes - Stock Trader, Author, Entrepreneur
- How To Short Sell A Media-Sponsored Pump & Dump | Timothy Sykes - Stock Trader, Author, Entrepreneur
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TIM Alerts
View All| Date | Stock | Position | Ideal Exit | % Gain |
|---|---|---|---|---|
| Nov 24 | KVHI | Short | $3.70 | 18% |
| Nov 20 | STSX | Short | $3.10 | 11% |
| Nov 18 | PERY | Short | $3.75 | 25% |
| Nov 11 | IIJI | Short | $2.80 | 5% |
| Nov 6 | CVI | Short | $4 | 15% |
| Nov 5 | MECA | Short | $1.95 | 51% |
| Nov 4 | CVI | Short | $4.81 | 4% |
| Nov 3 | NAK | Short | $3.20 | 5% |
| Oct 29 | EVC | Short | $2 | 26% |
| Oct 28 | HSNI | Short | $6.80 | 7% |
| Oct 28 | HSNI | Short | $5.75 | 4% |
November: 9 alerts, 15% avg gain
October: 11 alerts, 14% avg gain
Sissy value investors do worse than random strategys http://news.morningstar.com/ar.....erformance
I aggree with that. Morningstar is beginning to sound facist, Tim has got me hooked on penny research. Theres this tiny little solar company in the town I live in. Ive watched it for months and nearly everyday at certain points it flies up like 3X or more from like .003 to .011. Im so into following TTTHEDGEFUND and getting my substantial losses back but tim is a proven winner on the little fellas and when I get my balls back Im in. TTT Got short into the 1375 top and now is loading up for a 7-10% rally by Memorial Day ..He thinks we can double our money in that time …..on options and futures long. Check these guys out but tim is still the man.
humboldt this is your last warnings, stop spamming my site, if you want exposure for your site, stop being so cheap and buy an advertising package, they’re not that expensive and instead of deleting your comments, i’ll actually help drive traffic to your site!
http://www.timothysykes.com/advertise/
if its not right for you then so be it, but for heaven’s sake, stop comment spamming!
Im sorry I digressed and didnt name the solar stock. Its TSSP.pk. Six Rivers Solar. Real up and cummer with solar hot water systems in huge apt complexes. I did get burned by two pennys a couple months ago, scra.pk and cnoa.pk in a pump and dump I got sucked into. Im telling you when you read Tim then TTTHEDGEFUND and feed the bull right after each other its like a personal session with Tony Robbins. These guys will be huge someday.
so u really dont know how to read do u?
Wow, that guy is a sad, sad tool.
BANHAMMER THIS DOUCHE
Ok guys, enough cocktails whats on the agenda?
Hey Tim,
A friend of mine gave me a WSW season 1. Did you ever hook up with Sandra? Very Niiice! Anywho, I was big on investing like the gurus. I read books from Peter Lych, Buffet, and Ken Heebner. These guys are great at what they do, however their strategy was great when the market was good, however put me in a 40% loss in my portfolio to this date. I need to get my ass in gear and I decided to day trade. I have always shorted in a similar fashion as you do, however I look for more news hype and make a judgement on it is creditable or not. I have been alwasy pretty successful doing this however never really thought about just doing this daily. I followed you today on PSTI and NCEN, however could not borrow shares for either. So i decided to short GERN from my own screening. Made a quick profit and had to go golfing with my pops. But I need your advise on how to setup a day trading account. I use TD right now to trade and they have limit of day trades I can do or they would require more capital in the account. I am trading with TD and using TOS and my charting resource. How are you borrowing shares for these securities and how do not get haggled for day trading.
Hey ChartD,
Checkout the forums. Specifically the Q&A and Basics forum — all of your answers pertaining to how Tim borrows for shorts to the pattern day trading rule can be found there.
Psti…I figured when it hit 4 the stops would hit…but guess not…now on to envi what are you thinking a couple more days of run up?
Tim hope you dont mid this isnt spam…but I started a league for practice to turn 12,315 int 1.65 million if anyone wants to goof around and practice Tim’s methods.
Use the information and directions below to join the game.
Game ID: timsykes1
Open this link and read the competition summary:
http://vse.marketwatch.com/Gam.....=timsykes1
Click on the ‘Join Game’ link.
If you are an existing Virtual Stock Exchange member, enter your Email address and Password in the login panel and get set to trade. If you are a new user, follow the link to register - it’s easy!
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Join now, and see if you can win my timsykes competition! The more participants the higher the level of competition. Can you master the market?