August 10th trading recap: 3 wins, 1 loss, +$80

SPDE was a nice short on the morning panic. It would have been easy to play it profitably for 40 cents as it went red, just like I said on yesterday’s watchlist. OPXA did almost nothing. Rather than trade SPDE, I saw Rentech (RTK) up big in pre-market trading on a great earnings release. It hit a high in pre-market trading of $1 and then opened around $0.88. Buying it was a good idea:

+ BOT 2,000 RTK false Stock .910 USD SMART 09:30:46 9.10
+ SLD 2,000 RTK false Stock 1.000 USD SMART 09:37:31 10.00
+$160 (8.74%)

Pre-leaders that have strong news but open significantly below their highs in pre-market trading are often great longs. Another good trigger for going long pre-leaders (or any volatile stock) is when it crosses an even-dollar amount.

BOT 1,000 YMI false Stock 1.03 USD ARCA 09:33:35 5.00
SLD 1,000 YMI false Stock 1.10 USD AMEX 09:40:35 5.00
+$60 (5.80%)

YMI was another pre-leader with news (drug news that was not that great in my opinion). I bought it as it crossed $1 (when it was alerted by Muddy in the Investors Underground chat) and I sold it after it backed off of its high of $1.20.

My lone loss of the day was a TimAlerts scalp play that I should never have traded. It was my watchlist stock SPDE that he shorted, but by the time I got the alert it was way off the price he traded it. Some may ask why I scalp stocks that Sykes trades. I do it because it is easy money (as long as I am quicker than most of his subscribers). Rarely does one come across a situation where one can predict exactly when a bunch of buying or selling pressure will occur. It is imperative to derive profit from such circumstances. This does not mean that I do not also often trade alongside Sykes on his alerts: I do. It just means that this is one other little niche for me to profit from. (For those searching for easy profits from mindlessly following Sykes’ trades, be aware that I have made almost twice as much money by making trades in the style of Tim Sykes than by following the trades of Tim Sykes.)

+ SLD 2,000 SPDE false Stock (SCM) 2.630 USD DRCTEDGE 09:41:03 10.00
+ BOT 2,000 SPDE false Stock (SCM) 2.743 USD ISLAND 09:48:00 10.00
($246.00) (4.69%)

My last trade of the day was a traditional Tim Sykes-type trade. I bought a steady runner that was finishing the day strongly, in anticipation of a gap up tomorrow. That stock was of course RTK; I sold it in after-hours trading while dealing with my website troubles. If I had not had to work on my blog I would not have followed it after hours and I would have planned to sell the next morning.

+ BOT 1,000 RTK false Stock 1.270 USD SMART 15:47:57 5.00
SLD 500 RTK false Stock 1.3900 USD DRCTEDGE 17:52:13 BookTrader 2.50
+ SLD 500 RTK false Stock 1.382 USD DRCTEDGE 17:52:15 BookTrader 2.50
+$106.08 (8.32%)

Today’s profit: $80.98

Disclosure: No positions. I have a disclosure policy.

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