I have netted $1,776.12 buying stocks on my watchlist since I started this blog. I have learned to buy stocks on simple breakouts by following what Tim Sykes teaches in his Pennystocking Part Deux DVD (and his other DVDs), although I do have my own style when playing these. While this is not large relative to my account or other profits, it is impressive because I am generally very poor at buying stock. I am satisfied with my gains so far and if I can keep generating such nice profit margins I may look to increase my position size. I have tweeted some of these trades (like my great trade of GSAE yesterday).
(click chart for full-size chart)
Following are some details on these trades:
Average profit: 4.63%
Weighted average profit: 3.02%
Winning trades (%): 86.7%
Normal position size: $5,000.00
| Ticker | Type | Shares | Open Date | Price | Position | Close Date | Price | Profit ($) | Profit (%) |
| AXL | long | 1000 | 8/19/2009 | $5.72 | $5,717.00 | 8/19/2009 | $5.99 | $268.00 | 4.69% |
| RTK | long | 2000 | 8/19/2009 | $2.44 | $4,870.00 | 8/19/2009 | $2.47 | $60.00 | 1.23% |
| XIDE | long | 700 | 8/24/2009 | $7.74 | $5,414.50 | 8/24/2009 | $7.85 | $77.00 | 1.42% |
| VG | long | 1000 | 8/26/2009 | $2.29 | $2,288.00 | 8/26/2009 | $2.58 | $287.00 | 12.54% |
| HLCS | long | 2500 | 8/31/2009 | $1.85 | $4,617.50 | 8/31/2009 | $2.08 | $570.00 | 12.34% |
| HLCS | long | 1000 | 8/31/2009 | $2.21 | $2,205.00 | 8/31/2009 | $2.30 | $90.00 | 4.08% |
| SVA | long | 200 | 9/1/2009 | $11.60 | $2,319.00 | 9/1/2009 | $12.02 | $84.00 | 3.62% |
| GTN | long | 200 | 9/8/2009 | $1.24 | $247.00 | 9/8/2009 | $1.28 | $8.00 | 3.24% |
| EXXI | long | 4000 | 9/8/2009 | $1.49 | $5,940.00 | 9/8/2009 | $1.40 | ($360.00) | (6.06%) |
| VVUS | long | 400 | 9/10/2009 | $12.65 | $5,058.00 | 9/10/2009 | $12.68 | $15.20 | 0.30% |
| IVAN | long | 2500 | 9/11/2009 | $1.93 | $4,812.50 | 9/11/2009 | $1.86 | ($175.00) | (3.64%) |
| RAME | long | 4000 | 9/15/2009 | $1.14 | $4,540.00 | 9/15/2009 | $1.26 | $501.80 | 11.05% |
| YRCW | long | 800 | 9/24/2009 | $5.99 | $4,793.60 | 9/24/2009 | $6.08 | $74.12 | 1.55% |
| GSAE.pk | long | 1000 | 9/29/2009 | $1.08 | $1,075.00 | 9/29/2009 | $1.32 | $240.00 | 22.33% |
| VSR | long | 900 | 9/30/2009 | $5.41 | $4,864.50 | 9/30/2009 | $5.45 | $36.00 | 0.74% |
Here is my reasoning for each of the above trades:
AXL looking for continuation on strong breakout on (so-so) financing news — was up 117% previous day; opened red like market and I bought on red/green cross; got stopped out (was using too-tight mental stop); hit hod of 7.11
RTK looking to short, opened red with market, but bought on red/green cross; sold with too-tight stop; was up on puffy news previous day 86%; hod was 2.93
XIDE solid one-day breakout, bought on second up-day on red/green 3 min after open, sold as it fell off of 7.96 hod
VG up from 0.50 in two days, showed big 50% gap up on day three and I bought right after open and sold quickly (was filled only 1k out of 2.3k shares due to routing issues)
HLCS opened red (mkt gapped down 1%) then went green, had great breakout chart, made breakout previous day, bought (late) as it went green and broke previous day’s high of 1.78–went over $3 for a good chunk of time
HLCS opened red (mkt gapped down 1%) then went green, had great breakout chart, made breakout previous day, bought here as it re-broke hod
SVA was up from 7 to 9.7 previous day on 10x normal volume on some good news, strong throughout day; bought as it broke morning’s highs 2 minutes after open (slow due to computer issues, should have bought at 11.30), sold as it showed weakness; would’ve played larger but was distracted by computer issues
GTN watched for big breakout above 1.14, but gapped above that to 1.24, tried waiting until it showed strength, should’ve just gotten in around 1.22; when I tried to get in I only got a tiny fill so I got out; it hit 1.48 less than 20 minutes later
EXXI was big runner on earnings previous Friday, opened red, went long on green/red, got out after it failed at 5 cents below previous close; good trade
VVUS was up big previous day on drug news, bought on breakout above 12.50, previous day’s high, was slow (even though I had alarm and order set), not good entry, so I got out quickly; also, it had been choppy the previous day
IVAN significant break of 1.85, broke it in pre where I bought it 3 minutes before open (a little late too considering the break) broke my rule of not trading pre-market thinking it is meaningful for market … should’ve waited for open where I would’ve ween its price action suck and wouldn’t have bought
RAME saw alerted by IL in GOTS chat (now Investors Underground chat) he was watching for hod test; looked at multiday chart and saw hod of 1.12 was a significant technical breakout. Bought when it broke hod and started printing 1.13s, sold 20 minutes later on a bit of weakness
YRCW broke out above huge $6 mark in pre-market, opened at 5.90, bought right as it looked to break 6, it took a minute longer, but then it did and hid a hod of 6.20, I sold as it fell off that; later went below 5.70
GSAE.pk huge run chart from .30 to .90 in two days, bought early in morning as it broke morning’s high of 1.05 and sold as it looked like it was fading a little; 5 minutes later it hit a high of $1.79 and quickly dropped off of there
VSR gapped up on news above technical resistance at 5.20, bought right out of open (waiting for a tiny bit of upward momentum), hit hod of 2.70 then quickly dropped, I sold quickly as it tanked
Disclosure: No positions. I have a disclosure policy.
I’ve profited ffrom several of picks from your watchlist as well, but I’ve missed more trades than I care to admit. That’s something I am going to get better on, buying the fast movers early in the morning, using smaller positions as you suggested.
Missing good trades isn’t nearly as bad as making bad trades. Even the best traders will miss some.