Trade recap for November 5th

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I’ve decided to give up on making trades based on things I see alerted in the Investors Underground stock chat unless they fit into one of my other trade categories. I have done nothing but lose money trying to trade in their style (with the exception of my slightly better than breakeven trading of pre-leader longs). While I have made, according to my handy-dandy trade spreadsheet, $5,622.26 trading general stocks alerted in the chat, with the exception of a few pump and dumps, GGC, and DNDN (where I made over 100% in less than five minutes of actual trading), I have lost $2,902.85 trading based on the alerts. What does this mean? I will continue to subscribe to the chat, because I do find it helpful in identifying stocks on the move (and I would not have made the money I did make in GGC, DNDN, and several Stockpreacher pumps if I hadn’t been in chat), but I will no longer make any trades based on the chat unless they fit within my own trading styles.

Daily profit: ($101.89)

BOT   10,000   MXGD   false   Stock (OTCBB)   0.0570   USD   ARCAEDGE   09:30:23       2.85
BOT   10,000   MXGD   false   Stock (OTCBB)   0.0600   USD   ARCAEDGE   09:31:20       3.00
BOT   5,000   MXGD   false   Stock (OTCBB)   0.0600   USD   ARCAEDGE   09:31:20       1.50
+   BOT   10,000   SNSS   false   Stock (SCM)   .500   USD   SMART   09:34:06       27.75
SLD   10,000   MXGD   false   Stock (OTCBB)   0.0510   USD   ARCAEDGE   09:34:14       2.55
SLD   10,000   MXGD   false   Stock (OTCBB)   0.0500   USD   ARCAEDGE   09:34:34       2.50
SLD   5,000   MXGD   false   Stock (OTCBB)   0.0500   USD   ARCAEDGE   09:34:54       1.25
+   SLD   10,000   SNSS   false   Stock (SCM)   .492   USD   SMART   09:37:38       29.86
+   BOT   200   FSYS   false   Stock (NMS)   40.070   USD   SMART   09:40:47       1.00
+   SLD   200   FSYS   false   Stock (NMS)   40.490   USD   ISLAND   09:44:29       1.00
+   SLD   900   QXM   false   Stock   4.760   USD   NYSE   09:52:42       4.50
+   SLD   3,100   QXM   false   Stock   4.702   USD   NYSE   09:52:44       15.50
+   BOT   4,000   QXM   false   Stock   4.660   USD   ISLAND   09:53:04       20.00

Disclosure: No positions in any stocks mentioned in this post. I have a disclosure policy and you can find all my disclaimers there as well; those disclosure & disclaimers are incorporated by reference into this post.

This entry was posted on November 5, 2009, 4:40 pm and is filed under All Categories. You can follow any responses to this entry through RSS 2.0. Both comments and pings are currently closed.

16 Comments

#1 by stkonlinetrader on November 5, 2009 - 5:44 pm

I second that too. Trading stocks that are outside my comfort zone has not worked well for me…since i am blindly trusting the chat alert…
- #2 by InvestorsLive on November 5, 2009 - 7:49 pm
  
  How exactly are you using a chat alert?
  
  I post when I’m pretty confident about entry for all to make money my exact in and price but for pump stuff and/or lighter vol trades I post exactly what I’m looking for
  
  Just curious how you ‘take’ or ‘trust’ a chat alert
  
  I watch some of Reapers trades many times when he tweets them and he’s actually in the money just doesn’t lock in – one thing I would suggest is when you get the initial pop to lock some in – you can’t trade momo stocks like you trade multi day swings.
  
  I think a lot of people forget to take profits, for example with the initial run on WDAS today everyone is up nearly 75% and then acts surprised that it pulled back hard so reminded everyone playing EEGC
  
  [Nov 5, 2009 7:51:53 AM PST] InvestorsLive those playing EEGC if this pops to .09-.10 here just remember.. lock some in – WDAS pulled back etc – pops are good for taking a few off
  
  but that’s the mind set you need to be in, otherwise yes strategy isn’t for you
  
  Not defending the chat room just curious how in fact you do take a chat alert and what you do with it
  
  Going in blind is not a solution, I can go over again on Sunday what you should be doing with alerts – the daily chart (3 month), the intraday chart etc
#3 by Yngvai on November 5, 2009 - 5:53 pm

I’ve had the same problem in the past. I don’t play chat alerts anymore. And I’m tweaking and developing my own system for longing the preleaders. The system seems to be working…..66% winning trade rate over the past month, and 3.6 ratio of gains to losses, if I follow the rules I’ve developed for myself.
- #4 by Reaper on November 5, 2009 - 8:31 pm
  
  Nice winning percentage considering 3.6 ratio!
#5 by Simon on November 5, 2009 - 6:20 pm

Hey Reaper,
In your video when you where speaking “MGDD, or MGXLQ whatever” you mentioned you bought in anticipation of a pump by stock preacher or beacon equity, what are your methods of looking for possible pumps before they are even put out by a promoter?

Any help would be greatly appreciated,
Thanks
- #6 by InvestorsLive on November 5, 2009 - 7:44 pm
  
  Beacon and stockpreacher were doing a gold stock that had triple just months before they said… MXGD had fit the ticket and was trading a few prints premarket and then I saw a bidder, little did I know it was Reaper lol
  
  Turns out AMNP fit the ticket as well and was it
- #7 by Reaper on November 5, 2009 - 8:31 pm
  
  Simon — IL answered the question. But if I lost money doing it, why would you want to emulate me?
#8 by Preston on November 5, 2009 - 7:45 pm

These are possible breakouts that have nice charts, the overall market could have caused some of this today.

Symbol Last Net Chng %Change Volume
VRNM 4.24 0.82 23.98% 103,678
BLTI 2.29 0.44 23.78% 193,112
LACO 3.35 0.51 17.96% 312,783
SNTA 3.04 0.45 17.37% 110,309
AGYS 7.21 0.86 13.54% 194,447
TTMI 11.35 1.3 12.94% 532,499
ASGN 6.7 0.72 12.04% 145,613
AEZ 2.68 0.28 11.67% 968,824
BKCC 8.37 0.86 11.45% 1,145,772
PARD 7.89 0.8 11.28% 1,448,288
PWER 3.14 0.31 10.95% 2,210,913
UNTD 8.64 0.85 10.91% 1,503,491
#9 by Reaper on November 5, 2009 - 8:29 pm

IL – No, I didn’t buy pre-market. I saw those same pre-market prints.
- #10 by InvestorsLive on November 5, 2009 - 9:16 pm
  
  oh yea, I just saw it was after market open now hah, I was curious why they were so active that’s what made me take a second look and start digging.. that and the fact that all these campaigns now print stocks at like 8am to get them on peoples watch list… seems like its catching
#11 by Reaper on November 5, 2009 - 8:36 pm

Yeah I don’t even bother trying to play most of those sub-dollar stocks, because I know I suck at them. Most of the ones I trade I don’t get more than 1% in the black before it goes against me. Maybe I’ll post some trades later.

InvestorsLive :

How exactly are you using a chat alert?

I post when I’m pretty confident about entry for all to make money my exact in and price but for pump stuff and/or lighter vol trades I post exactly what I’m looking for

Just curious how you ‘take’ or ‘trust’ a chat alert

I watch some of Reapers trades many times when he tweets them and he’s actually in the money just doesn’t lock in – one thing I would suggest is when you get the initial pop to lock some in – you can’t trade momo stocks like you trade multi day swings.

I think a lot of people forget to take profits, for example with the initial run on WDAS today everyone is up nearly 75% and then acts surprised that it pulled back hard so reminded everyone playing EEGC

[Nov 5, 2009 7:51:53 AM PST] InvestorsLive those playing EEGC if this pops to .09-.10 here just remember.. lock some in – WDAS pulled back etc – pops are good for taking a few off

but that’s the mind set you need to be in, otherwise yes strategy isn’t for you

Not defending the chat room just curious how in fact you do take a chat alert and what you do with it

Going in blind is not a solution, I can go over again on Sunday what you should be doing with alerts – the daily chart (3 month), the intraday chart etc
#12 by Reaper on November 5, 2009 - 8:36 pm

And I definitely don’t go in blind … I tried that when I first joined GOTS chat back in mid 2008
#13 by Reaper on November 5, 2009 - 8:38 pm

Oh gosh, here’s a great losing trade of mind from the GOTS ‘style’:

VRMLQ.pk Long 1000 9/11/2009 $1.085 $1,085 9/11/2009 $0.985 -$100.00 -9.22% up from .03 on FDA news, why the fuck did I buy this? Bought right at top and sold when it faded. Idiot

Who would’ve guessed I’d later make a couple hundred bucks buying that at $20?
#14 by Yngvai on November 5, 2009 - 9:22 pm

Hey Reaper I notice a lot of similarities in our struggles. Like you, I’ve never done too well with the small pennies either. If I ever do play them now, it’s with a tiny position (like $100 or so), and playing for the 3-10 bagger. So a 20% loss means only a $20 loss for me, but if the stock triples, then I make $200.

It’s taken me a long time to get consistent trading the preleaders too. I’m now getting very selective for what I look for. I wait at least 10 minutes from the open, and I look for breaks from patterns….consolidation or basing, ascending triangles, etc. Also, once it’s past 7:45 AM PST, I won’t touch any preleaders until the afternoon (after 1 PM PST)….I find that mid-day breakouts tend to be less reliable.
- #15 by Reaper on November 5, 2009 - 9:30 pm
  
  The funny thing is, the one time I’ve been reliably profitable buying pre-leaders is with biotechs with FDA news buying right out of the gate. I do agree on the timing for most though, especially avoiding mid-day fake-outs.
#16 by Yngvai on November 5, 2009 - 9:42 pm

I’ve always gotten burned trading preleaders right out of the open. I admire the people who do it well. I just never know when my odds are good versus when they’re not when it comes to trading at the open.

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