How I Lost Some On China Finance Online Co. (ADR) (JRJC) & Zagg Inc. (ZAGG)
Posted by Timothy Sykes on Mon 16th of Feb, 2009 08:45:07 AM
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Straight from the TIMalerts themselves:
Bought 5000 ZAGG at $1.49 on the breakout…previous high of $1.49, plenty
of support in the $1.35-$1.40 area…they make invisible shield for mobile
devies like blackberries, todays report out of RIMM saying people aren’t
buying new blackberries means they have to take better care of their old
ones! I know its a stretch, but sales are zooming, see all their
achievements in a recent CEO letter HERE…yes, it is hype, but gotta
love a stock that knows how to hype itself with only a $28 million
marketcap, potential upcoming nasdaq listing and published financials
that actual show sales up exponentially and profits, yes
profits…supposedly gonna earn 20 cents/share next year on a doubling of
sales to $36 mil, see for yourself, good story for now, remember FORD,
the laptop case-maker that surged a few years back, eerily similar here…my
goal is to sell at $2 within the next few days/weeks, careful it is a bit
illiquid
The setup was sweeet, as I detailed in my initial post, and the stock closed at $1.60, a nice $500 unrealized gain for me….but the overall market looked like it was gonna fall off a cliff the next morning so I:
Sold 5000 ZAGG at $1.51, Not Risking It In This Market…i don’t care how excited i am about this company/breakout, the overall market is close to breaching key levels, we’re talking multi-year technical support…not the time to be going long any speculative illiquid OTCBB stock, sorry, I trade conservatively, this was a great setup, but 3 out of 4 stocks follow the market, i ain’t going down with the ship! i didn’t even get out at very good prices, and i still profited….i’m sure you can do better…what i’m going to do is stay fully liquid and be prepared to take advantage of some possible panic…no rush to trade, just have to wait until some unimaginable opportunities show themselves
Very disappointing, but gotta play OTCBB stocks extra careful…’twas a good safe sell, although I was overprotective as the market didn’t crumble, ZAGG dropped a bit but held around $1.45-$1.50, as helped by Obama’s massive manipulation.
And I say Obama’s manipulation bitterly because the market was all nice and ready to crash bigtime so I shorted this other stock, same day as I sold ZAGG, to try to capture that:
Shorted 1200 JRJC at $10.69…perfect stairstep pattern down, nice resistance at $10.80…looks like a clear path to $10…this is China’s TheStreet.com but they spam people…this is a play on the hope that the market breaks big and instead of just going for 50 cents/share of probable downside, this thing could really crack as it had in the past after spiking for several days….this is a true technical play, low risk, high potential return
The tock faded perfectly to $10.26, yet another $500 unrealized gain for me and that’s when the Obama manipulation came and the entire market spiked…I played it safe, as usual, and as i’ll always try to do:
Covered 1200 JRJC at $10.80…gotta love the irony, i was dead right, the thing took out morning support perfectly, stock market taking, justifying me getting out of ZAGG this morning, then we have last minute news from Obama…beautiful just beautiful…pretty much a scratch for me, up $100 on one, down $100 on the other…playing it safe in this uncertainty….this is how bottoms–no matter how temporary–are formed, stubborn short sellers get their butts kicked.
So, one small gain and one small loss from a long and short trade, two “almosts”, but no matter, that’s the point of good PennyStocking–put yourself in good positions to profit, only delve into high percentage setups like this and then accept what fate the market decides by cutting losses quickly. Never whine about mishaps, just move on and learn from what went wrong.
Do enough good trades and inevitably you’ll have more profits than losses over time, as evidenced nicely by my 197% return last year and 5% in losses this year aka 30,000 steps forward (my approximate $ profit last year) and 2,000 steps back (my approximate $ losses so far this year).
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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%)
