Comments on: Trade recap for February 5th

By: Reaper

Reaper — Sat, 06 Feb 2010 15:24:14 +0000

With SogoElite you can short under $3 … OTC supposedly as well. With normal Sogo you can’t short under $3.

By: chuck

chuck — Sat, 06 Feb 2010 08:58:55 +0000

Hey Reaper, got a question.
OT:
You mention before you have Sogoelite. Some people says that you can’t short stock under 3 or play otcc stocks. Is that true? Thanks.

By: Reaper

Reaper — Sat, 06 Feb 2010 02:14:05 +0000

Thanks for the good reply. That is better than what I could have said.

By: Jamal Chahboune

Jamal Chahboune — Sat, 06 Feb 2010 01:14:55 +0000

Thanks for your insight James!

By: James Krieger, M.S., M.S., no B.S.

James Krieger, M.S., M.S., no B.S. — Sat, 06 Feb 2010 01:04:13 +0000

Hey, Jamal, I can’t speak for Michael, but I look for bounce plays for stocks that are likely heavily shorted. So any stock that has had a huge run-up, and followed by a big drop, is likely going to have a bounce as shorts cover their positions. Typically you’ll see a 5-10% move on green on those types of plays. But you do want to take profits quickly….I find these types of plays are meant to be day trades as the moves often won’t be sustained.

It’s even better if the stock has a relatively low float, because it doesn’t take much buying pressure to get the stock to move.

By: Jamal Chahboune

Jamal Chahboune — Sat, 06 Feb 2010 00:55:59 +0000

Hello,

In reference to the bounces, how do you find buying bounces in general? I have tried in the past and find most of the bounces are too puny to profit from. Also the consistency is similar to breakouts, in that most quickly reverse after showing signs of recovery. I would appreciate your thoughts!

Thanks in advance.

By: tbohen

tbohen — Fri, 05 Feb 2010 22:44:58 +0000

Whatever the beer and frito’s cause 90% of traders to lose money!!

By: Tastylunch

Tastylunch — Fri, 05 Feb 2010 22:33:59 +0000

Reaper RE: the end of your interview the other day as to why 90%+ of traders lose money

I thought Dr. Steenbarger by coincidence remarked on an interesting observation the same day, that may help explain why that occurs

http://traderfeed.blogspot.com/2010/02/salience-principle.html