Another HotOTC gap and crap (although hardly a gap)

And yet I messed it up. I will blame it on a large loss ($2500 or so) on an unrelated trade today.

HotOTC & StockRich & StockEgg pumped ETNL for $45k cash: “Hototc.com has been compensated by a third party BuzzBahn Media forty five thousand dollars for a one week ETNL advertising services contract.”

09:37:09    ETNL    SS    0.0084    1500    NITE
09:37:13    ETNL    SS    0.0084    50000    NITE
09:37:20    ETNL    SS    0.0084    20000    NITE
09:38:39    ETNL    SS    0.0082    29000    NITE
09:39:30    ETNL    SS    0.0082    100000    NITE
09:41:20    ETNL    SS    0.0079    200000    NITE
10:33:54    ETNL    B    0.0085    200500    NITE
10:34:36    ETNL    B    0.0085    200000    NITE

My trading journal entry: “was sub-penny hototc pump, half their sites ($45k); opened with tiny gap at .0082, dropped very quickly (around 9:50), briefly hit a lod of .0071 then climbed back up; covered to protect myself at .0085 at 10:30am and then it dropped again, hit .77 again within 20 minutes; hit a lod of .007 at noon, had good volume at .0067 by 1pm; trade at BroadStreet; had good volume later in day at .0064, lod was .0063”

I lost $208.44 … had I held on through the spike and covered at .65 I would have made about $600, and this was on 400k shares, not the 650k shares I had borrowed. Lesson: Get shorter earlier, hold on longer. The best way to mess up when trading a strategy (shorting HotOTC pumps) that gives a 90% win rate is to play too conservatively.

Disclosure: No positions in any stocks mentioned. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.

 

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