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.

0 thoughts on “Trade recap for November 5th”

    1. 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

  1. 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.

  2. 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

    1. 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

  3. 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

    1. 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

  4. 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

  5. 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?

  6. 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.

    1. 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.

  7. 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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