Feel Good Friday: Nailing A Perfect Short Sale On Vermillion, Inc. (VRML)

Posted by timothysykes on Fri 9th of May, 2008 05:53:59 PM

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Was I bitter that a stupid mistake cost me between $750 and $1,000 in missed profits the first time VRML squeezed the shorts (as I posted helping other, not knowing I was already short!)? You bet I was! Was I going to let it influence my future trades on that stock or any other? Hell no!

So, after surging pretty much straight from $1 to $5, back down to $3 and then squeezing a few over confident shorts to $4 in a few days all on an ill-researched media story, on Wednesday, I posted how I shorted 1,300 VRML (all I could find) at $3.75, a little too early, but I was confident since I knew this thing would be volatile and shorts would be aggressive.

A few hours into my short, when it was a typical 25 cent profit (as you know I take too many of those) in the $3.50 range, I posted how I was gonna have patience on this one and cover under $3 cuz it was one of the few truly ideal PennyStocking Supernovas to pop its trashy head up in the past few months, even if as I also noted that this was the 3rd great shortable penny stock action in as many days (LGDI which I made $350 on and VRML round one, where I screwed up and lost $180, even while calling it perfectly for readers!)

After all, this truly was the successor to my most successful trades on similarly failing biotech companies REED, DARA, VION and PSTI—this would be the 5th king in that line of royally trashy companies

Unfortunately, taking out the trash day would have to wait as on Thursday, they issued a fluffy PR that tempted a few amateurs and scared a few shorts enough to spike this thing back to the $3.80 range, even if it was only at the market open with the rest of the day being a gradual fade right back to the $3.50 area

Going into the third day—this was clearly a long-term trade now–but without any fluffy PRs to save it from destiny, I posted how I was more confident than ever since the gradual downtrending was in place along with the wall of sellers, gradually ratcheting down the price (after all, not many people wanna buy a stock up 380% in a few days, especially when its chart resembles a midget trying to hold up a basketball player.

And after some initial buying (but no spiking whatsoever), the day was finally focused on the front line—the key $3.40 x $3.60 area that’d held for the previous 2 days…ever so slowly the bids got taken out, particularly inspiring was whenever a big buy block came in, or upticking, somebody took it out—meaning short sellers were chomping this thing to pieces so it was just a matter of time before the key $3.40 level got taken out, as I kept posting about AGAIN AGAIN and AGAIN (helping to remind my impatient self as well as others)

And then, in one fine minute at 3pm today, $3.40 got taken out, the stop losses did the rest, taking out $3.35, $3.25, $3.10 all the way down to $3.02…having already had an inkling this kind of stop loss surfing might occur, I had already put my buy to cover order at $3.05 and it got taken for a 70 cent per share, $905, 20% return in 2 days. I frigging nailed it!

vrml5day Feel Good Friday: Nailing A Perfect Short Sale On Vermillion, Inc. (VRML)

I wanted under $3, but with some big buyer orders lined up there and the quickly disappearing liquidity, I wasn’t gonna risk it. Turned out to be dead on accurate as the stock dipped under $3 for a minute but then bounce a bit. Monday, Tuesday—the stock will either tank ore, stay flat or bounce (how’s that for neutrality?), I don’t care. The goal of PennyStocking isn’t to pick tops and bottoms, it’s to profit 50 cent-$2/share by predicting the meat of the move…at 70 cents/share, pretty much calling every spike a fakeout and nailing the key breakdown level and exit point, this is one of the most perfect trades I’ve ever executed. Even more important, several readers have posted they profited from this too! That makes me damn proud and inspires the Jew in me to ask for donations

(Seriously, please help me pay my badass web designer!)

Now I’m up a mistake-filled (and mistake-detailed) 56% in just over 6 months, already 6% this month…when’s the next play? Who knows! Take it one pump at a time and try not to have any expectations or deadlines. That’s TIM’s key to success. Good night and good luck, it’s nap time!

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Related Reading

If At First You Short A Pump And Dump And Succeed, Try, Try Again! April 22, 2008
Controlling A Stupid Trading Mistake Means An Opportunity Lost May 6, 2008
The Old Morning Drop Following The First Down Day After A Big Runup Trick April 24, 2008

YngvaiMalmsteve

Nice work Tim. Quite the opposite of my NNVC experience, which I entered waaaayy too early (posted about my lessons learned from that on the forum). I learned the hard way why you don't short in the morning. I even had that in my rules list that I've been making and I didn't follow it! Sometimes it takes a little bit of punishment to realize why those rules are in place.

JMoates77

Tim, just landed in Phoenix...damn. I heard all the good news and I still haven't dumped my shares. I've got 3000 sitting at $3.06/share. Oh well, looks like you get the trophy for best traveler/trader. I like the very monotone forecast of what VRML will do monday. Right now I'm up about $1650 and would like to get out with at least $1000 depending on what happens. I'll probably forego the morning dead cat bounce and hope for an afternoon fade. What do you think? Seems like the safest bet to me. Who the hell knows? It might tank another $0.50 and I might double up! lol. Just kidding, not that stupid.

Bob (VC)

Hah! Sorry Tim, I'm a very generous person, but my only donation will come when my trading earnings reach the +$300 mark (I'm currently at -$220), and then I'll buy your DVD. Yes, I do see the stupidity in this comment, as your DVD may help save me from the mistakes that have me losing money on my day trades, but I digress..

As of today the $10k I put into the market in late February is up to about $17k, so I can afford to lose a couple hundred here or there (oh, and to all you haters, I have realized really good returns using my own version of "tried and true" long-biased investment approaches, and yet I STILL see the huge value in Tim's system, so until you can beat my 70% in 3 months, STFU!). Sorry, that was a bit harsh, but the truth of the matter is there is room here for several different approaches. Mine is what I call the "Feed the Dragon" approach- I (plan to) use day trade proceeds to fund an account with long investments (none of which I will be married to- keep an eye on your money people, and cut your losses!). If you do that, then Tim's (self-described) non-scalable investment approach can sustain you for a good long time.

Ok, I'm done for now.. Time for another glass of Vino..

YngvaiMalmsteve

Hey, Bob, that's a pretty impressive return. I'm also experimenting with mixing short & long strategies. I signed up with Faus, and am going to mix Tim's short strategies with Faus's longs, and then throw in some long-term investments too (I like your idea of taking some proceeds and putting them in long-term investments). I've taken a few lumps the past week but it's all good in helping me set my "rule list". Looking at my list now, 75% of my losing trades I wouldn't have even entered if I had just stuck with my rules!

timothysykes

congrats jmoates, u'll probly be fine, i was waaaay early in htis pattern, after all today is only the first down day which i normally look to short into! but with this little capital and my whole focus of getting to 25k, i just take my 20% and move on

Anonymous

Tim and others, look @ NNVC, nice increase in volume and pps last days.

Jibri

Hey Tim have you seen this?

http://www.cnbc.com/id/15840232?video=735143181...

unAmerican, Hah!!

YngvaiMalmsteve

Hey, Aegir, I got burned a bit on NNVC today...shorting it WAY WAY WAY too early, and not following "da rules". But NNVC is looking promising. Maybe the next time I'll do it right.

ivegotstylekid

hell of a trade, and even better patience. good job tim

novalis78

Thanks Tim for sharing all your insights. I guess the donations will flow in soon ;-)

jibri

Hey guys checkout STEC for me. I'm looking for my first short.

huva959

hey tim, ive been browsing your site for the last few days and just registered now. your posts and blogs have really opened the door for me to try shorting. i c u were right on about vrml. i'm in the process of applying for margin now and have roughly 14k to work with after margin. look forward to posting here. thanks for helping all of us tim!

JMonie

Beautiful execution Tim!

Hopefully after a few trades this upcoming week I'll be able to pick up your DVD and increase my returns and see 25k even sooner.

lmsmith

Nice! Tim......... approx. 6k away from that golden #---

Testing my gravatar

ndfan19

hey tim, i am gald to see that you finally held this trade a little bit longer than a couple of hours. keep it up because i can't wait to see when you get to the 25k mark!

Bob (VC)

Yngvai- It's funny, because I did the exact same thing a couple of weeks ago, by making a list.. I've also been keeping track of all of my real and paper trades, and making notes on what I've learned from them. Had I followed them more closely I would have made out much better in my VRML trade.

Tim- The more I think about it, the more I think your "donate" button may be the way to go. I'd much rather see that, then see you go private like Fous..

timothysykes

exactly bob, i dont wanna charge people monthly cuz that puts the pressure on to trade and i'm trying to teach against pressure and expectations...this way if someone makes $1000 or $2000 due to my picks/blog, they might throw me $20 or $50...if my strategy is as good as i think it is, those little tips should be plenty for me

Ben_Bien

the tips will come Tim, the tips will come. Give and you shall receive, my friend. Many of us are already planning to buy your DVD and watch your talking mug for 6 hours. Plus, aren't you making some dirtyass money from your website sponsors? Anyway, I'd rather donate to you when I make gains off of your sweet picks than donate to the market when I don't follow your technique and lose $300 like last time.

Ben_Bien

P.S. If Tim were to go PRIVATE like Fous, that would put a dent in his whole spiel about FULL Transparency and showing what it takes to come up in the finance world with a small account, a shorting method, and a big mouth. I think Tim's operating on an entirely different business model, and he's not here to advise us to do anything like a Pay-for-Access site would.

P.P.S I wouldn't mind joining Fous' black service actually.

Ben_Bien

Think about it, the cost of internet is about $50. Or, the cost of some fancyass meal or grocery items will amount to $50 a month. And would those costs yield the kind of returns Fous' screening would? Hmmmm. If you're willing to cough up $50 for internet per month so that you can trade, why not cough up another $50 and let Fous do the research for you, while you work on improving your trading precision? Given all that I've just said, I just convinced myself!

YngvaiMalmsteve

I joined Faus's service recently. Already made a few bucks on some of his picks.

noobtrader.08

Timmer... i'll donate. how? as i told you before i'm only trading via WSS right now (not using real $$$ until I buy your video), but out of good old fashioned respect, I'll send you an $25 now and an additional $25 more when I purchase your DVD in the couple of weeks. So $50 bucks total.

How do I send you the quon?

noobtrader.08

stupid question... i'm tired... hit the "donate" button noob!

noobtrader.08

done... let me know that you got it though. i don't trust the internet... thanks.

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Who Is Timothy Sykes And Why Should I Care?

See Tim's full bio HERE. Tim turned a few thousand dollars into a few million by taking small gains time after time on hundreds of volatile penny stocks, discovering that his trading strategy, while consistently successful, works best for those with smaller accounts.

Determined to teach others this PennyStocking trading strategy (learn more HERE), he went back to his original $12,415 roots (already $58,000+ even though the stock market has crashed) to show everyone how to turn thousands into millions, even while having a life (somewhat) and making plenty of mistakes. Currently he is the #1 ranked trader out of 25,000+ on Covestor)

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Hard work to learn how the greatly misunderstood niche of penny stocks provides opportunities every now and then on which you should pounce.

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Long story short, wait for stocks that are extremely volatile - for whatever reason - and then aim to take small profits (between 10 and 50% within a few hours, days or weeks) here and there, either from betting on higher or lower prices (yes, you can make $ betting on lower prices, it's called Shortstocking (learn more HERE).

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TIM Trades

View All

Date	Stock	Buy	Sell	Net
Nov 19	AENY	$2.80	$3.02	$1148
Nov 18	NLST	$4.16	$4.40	$947
Nov 18	IMGG	$1.42	$1.64	$2094
Nov 17	NLST	$5.04	$5.59	$2195
Nov 13	VRMLQ	$21.50	$22.97	$2901
Nov 11	EONC	$2.61	$2.80	$687
Nov 10	EONC	$2.74	$3.36	$9784
Nov 6	QXM	$4.31	$4.80	$1936
Nov 4	COT	$8.66	$8.88	$642
Nov 4	QXM	$4.61	$4.89	$822
Oct 30	DDRX	$25.70	$26.53	$812
Oct 29	CTDC	$4.00	$4.42	$781
Oct 26	AWSL	$3.24	$4.10	$2516
Oct 23	RODM	$5.27	$5.23	$301
Oct 22	AMLM	$2.69	$2.97	$820
Oct 22	USEG	$6.12	$6.09	$85
Oct 20	CBOU	$8.93	$9.06	$243
Oct 16	VRMLQ	$16.79	$18.65	$2773
Oct 13	YONG	$11.05	$11.66	$1202
Oct 13	NPHC	$0.59	$0.71	$583
Oct 12	IMGG	$0.60	$0.70	$682
Oct 9	ZAGG	$5.50	$6.10	$2380
Oct 7	GVBP	$0.03	$0.27	$702
Oct 1	NPHC	$0.70	$0.85	$1482

Total: $98,094 (681%)