RamtaJogi— Hacking Life for Money and Fame.

Well, it was a very tough day for me today. Today, I was at my computer at around 8 and started looking at potential plays for the day. Once again, I was glancing at Adam’s watch list and I liked two stocks. MYL and BGS.

Here’s why I liked MYL. MYL was moving up for almost a week on no news. It had its first down day yesterday and I thought that it will continue moving down. My co-relation calculator showed that statistically it goes down 50/71 (DJI Green/Red) When MYL gaped down in morning and continued sliding for first 15 minutes, I decided to short 300 shares at 9.10. Here’s what happened next:

MYL Trade 11th Nov

I think this was a very bad trade. Initially when I shorted the stock, I had set STOP price of 9.43 (little above yesterday’s close 9.38). When MYL started approaching the close, I thought that it might go above the close but it will come down, so I decided to cancel my STOP order and decided to trade it manually. Once it was above close, it was trading sideways at 9.5. I was still okie with my negative position. While I was at Office doing some work, MYL decided to move and it touched 10$! I was very mad at myself that I didn’t exit out earlier. Anyway, instead of panicking, I started thinking and realized that 10$ could be a real resistance and MYL should trace back. Sure enough, MYL came back down to 9.60 level. I was still down by 50 cents/share and I decided to hold more down side thinking that in last hours of trading it will crash further (DJI was also tanking towards the end of the day) but well, MYL once again decided to move up and closed at 9.92. I am down by 246$ on this position.

I am not sure what to do next. My mind tells me that it will come down. But there is a fear that it might break 10$ tomorrow. Another thought I have is to short it again at 10$. Hopefully, it will not cross 10$ and I will be able to offset my losses if not make money. Strange thing is that after market hours, there were 1.3 million shares traded in 5 minutes! There were similar spike in volume yesterday as well. I don’t know why these spikes are there. Upon further analysis, I found that MYL is 85% owned by Institutions. This means that MYL is a legitimate company. These Institutional traders might want to cause a short squeeze. God knows what. Anyway, going forward, I am not going to short a stock in which institutional investors has more than 50% stake. As Tim says short the crappy companies, the pump and dumps, you are bound to achieve more success.

Next, BGS. Once again I picked BGS because it was moving up for almost 5 days on no news. Also, the calc showed RED % as 56/74. It gapped down in the morning and I decided to short it and here’s what happened:

BGS Trade 11th Nov

I am down by 100$ on this position. Even though I am down on BGS, I am not worried about it. I think today’s volume was lowest amount amongst last 6 days and I think BGS will crack tomorrow. Let’s see.

Anyway, after my big win with BEE, I have had nothing but losers. Partly it was because I made some bad trades and partly because I didn’t execute better. Trading is makes sure that you remain humble! As I discussed in my last post, I need more preparation before the market open, so that I can execute better.

Well, it’s already 1 in the night, I better start looking for my potential plays if I want to trade tomorrow!

Happy Trading.
RJ.

Status as of end of Nov 11th:

Open Positions: Short 300 MYL at 9.10 (Down by 246$), Short 800 BGS at 4.60 (Down by 100$)