An Interesting Stock Breaking Out…
Posted by Timothy Sykes on Mon 6th of Apr, 2009 03:05:25 PM
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When I sent out the following alert to TIMalert subscribers the other day, I knew it wasn’t a perfect play:
Bought 3000 APAC at $3.35…this one is breaking out on strong volume…likes to spike in the morning and gap higher…its holding the previous high of $3.30 after consolidating, everything tells me I can sell this near today’s high of $3.55, or higher depending on how it acts tomorrow morning…low risk, medium reward type play, goal is to make 50 cents/share but i’ll take 25-35 cents/share
Because as I preach in my PennyStocking instructional DVDs, I aim to profit by 50 cents-$1/share so this breakout was at the very bottom of potential plays.\, but I bought just the same because the breakout was on and basica technical analysis confirmed my thinking.
Unfortunately, as I wrote in this post, the overall market got clobbered at the market open, definitely hurting little APAC’s chances for a bigtime 50 cent/share breakout, so I sold near the market open for a 4 cent/share or $160 loss, a drop in the bucket compared to my monthly $2,000 in trading gains (that’s how to protect big gains with small losses!) and lots of other TIMalert subscribers also took small losses.
But there’s no one right way to trade these patterns (which is why my strategy is a lot more scalable than most people assume) and while I prefer taking quick losses, and encourage all beginners to do the same, a few bigger risk takers held for a few more days, were helped by the overall uptrending market, and achieved my 50 cent/share profit prediction and their big gains:
Made $885 on APAC stayed in a lil longer than most did I see and got lucky with a slow buy @ 3.21 w)1500 got out at 3.80, not bad for my first trade somewhat following ya……
-Dave
$475 profit on apac, patience pays!
-J.J.
Got in APAC again made $100 profit.
-TP
Got very conservative on APAC with stops and limits when I couldn’t watch the market, got out with +$87….
-Bob
And since the stock chart has gone near vertical, I’ll look to potentially short sell it for 50+ cents/share, only when my kind of fading action occurs, because the beauty of PennyStocking is that you can play the upside and downside (I’m infinitely better at the downside)
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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%)
