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Welcome to my blog. A lot has changed since I started this thing. I'm now trading live after about a year of paper trading and studying. Originally I had planned on starting part time and slowly growing my account but life has a funny way of changing your plans. I found myself at a crossroads of sorts and quickly realized that I was being given a once in a lifetime opportunity to pursue my goals. I took the leap and I'm not looking back. Follow me here and see the triumphs and the losses.

Updated (08-10-16)

I tend to look for momentum trades that I can hold for anywhere from a few hours to a few days. I usually take positions of $5k to $10k in size to allow larger gains on smaller percentages (it's easier to hit a 1% to 5% gain vs a 10% to 20%+ gainer) and I like to use a trailing stop.

This blog is a way for me to log my progress and to aid me in learning, I hope that you find it useful. Financial freedom isn't given, it is earned. So plant the seeds of education and grow your pennies!

Monday, October 26, 2015

Why I'm Happy I Didn't Trade $IMMY Today.

The title is a little misleading isn't it? You may read that and think I avoided a big loss or that I was wrong about it... I did lose money, but only because I didn't play it.


I started to watch $IMMY after someone on Profit.ly posted that it had hit the news for countering that infamous pharma villain's $750 aids pill by offering an equally good pill for the low price of $1 per pill. Naturally the media went crazy with the story and articles popped up on everything from Fortune to the WSJ.


Friday trading saw a huge spike to $9 a share from around $6 a share, a big pullback, then a gain for the EOD at $7.01 a share... this being a great example of how media can effect a penny stock and while, if played correctly, playing with pennies can be so dang profitable.


I ran the numbers with the stock profit calculator that I like to use HERE to see if the $7 a share would be worth me trading. I have what I call a "micro account" of $300 to trade with so the cost per share plus commission slippage really limits what I trade. I will be adding to my capital as funds become available, but for now that is what I have as disposable funds.


The calculator showed that I'd have to see some major gains to see profits and while the news was hot and I figured there would be a good gain on Monday, jumping in Friday at the close and holding over the weekend still felt like more of a gamble than a calculated risk, so I stayed on the sidelines.


I decided to paper trade it as a "pretend" play and follow the rules that I've put in place for myself.


Since I was not in at the EOD of Friday I would have definitely waited to avoid buying at the top of a morning spike, which climbed to the $7.50 range and then quickly fell to the $7.10 range. That would leave me with a likely entry point around the $7.30 range. Following my rules I would have exited in one of two places, $8.10 range mid-day, or $7.80 range closer to the EOD.


I would have seen gains of roughly $0.50 to $0.80 a share...


So while I didn't make any money today on this play, I'm happy I didn't trade $IMMY because I stuck to my rules, was smart about calculating in my cost per share, commission slippage, and % needed to hit green and made the smart decision to learn from this. I hope you did too, and I hope if you did play this that you banked!


ps. I think there may be enough momentum to see more gains tomorrow especially since more news came out with $IMMY in the articles HERE and HERE, but I doubt the same amount of gains and I wouldn't hold this overnight.

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