Learn From One Of My Best Stock Trades In Recent Memory
Posted by Timothy Sykes on Wed 17th of Jun, 2009 08:00:43 AM
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One of my gutsiest/dead on calls ever was when I shorted 1,000 JAZZ at $3.26 the other day, entering early because I knew the few shares to short at Interactive Brokers would be gone…knowing I’d have an early loss, but it’d be worthwhile once the inevitable fade set in, I sent this to TIMalert subscribers:
Shorted 1000 JAZZ at $3.28ish premarket, small speculative position…they’re presenting at conference yesterday, today and tomorrow and while the news is surely positive, as evidenced by yesterday’s 200%+ runup, the fact that this ran up intraday yesterday, not gapped up makes me think this is a trader-created momentum play, which can reverse…i’d like to wait until mid-day or the afternoon to short, but by then there probly wont be any shares available so i take this small position now and risk some pain in order to eventually profit from any fading action…risky, but thats why i keep it small…just like HEB, my goal is to make $1/share of downside
Dead on as you can see from the initial spike and fade:
I would’ve like a bigger fade, but short sellers can’t be choosers, so I sent this to TIMalert subscribers:
Covered 1000 JAZZ into morning panic at $2.84, great profit, horrible exit…got the morning panic on this one, but I wasn’t patient enough to capture the last 20-25 cents/share of downside…just a perfect trade though, made $400 on a $3000 investment in 1 day…$600 on MAPP puts me over $1000 in profits on 2 small trades…probable further downside on JAZZ, but I’m not sure how much due to all these seemingly confident buyers, so I take my 40 cents/share profit and go…see the pattern yet?
Here’s how TIMalert subscribers did:
I just wanted to say (AGAIN) thanks for the awesome recommendation for JAZZ. I shorted 700 shs at 4.03 and covered at 2.99 for a $723 profit! Thanks man!
-PolarCup
$1135 total profit on Jazz….. Thanks Tim!
-bobsgear
JAZZ + 950
MAPP + 90
IN TIM MONEY ;)
-TraderJoe
Ahh Almost to the 25k no PDT rule limit after JAZZ @ 3.99 Great entry up $1,485 with 1500 today.. NDN yesterday with OMG I made a farging KIlling on $3300ish at the close today with 2k shares @ 11.11 puts tim trade up to UnRelized granted $22,152 Granted most were not alerts many watchlist but many on my own after watching DVD’s over and over and over and over, Best Rule by far… CUT LOSSES Quickly, and Never Hope, only Know, now I have to be patient and not force anything in hope of making this milestone.
-P90X
covered JAZZ. $135 profit.
-Bill
Shorted Jazz @ 3.55 covered @ 2.57 cleared $166.48 after commissions…Thanks Tim ;-)
-Contango
$255 profit on JAZZ - covered at 2.78. Thanks for the call Tim!
-Asparmar
(Do you like that italics or do you guys prefer bold?)
Does it matter that JAZZ later reported positive news and the stock spiked back to the $4s? NO, of course not! When I go into a trade, I’m looking to take advantage of the current setup and probable chart pattern (all my favorite chart patterns are detailed in my instructional trading DVD packages)…not how the stock will do AFTER the anticipated pattern has played out (just like my successful short on DNDN, no matter that it later tripled…that tripling was not the high odds way to play it and I will NEVER bet on the long again (not after CYGT)
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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%)
