Category Archive: Trading Psychology

Nov 19

How to be dead wrong about Kalobios Pharmaceuticals $KBIO

Needless to say, my previous post on KaloBios Pharmaceuticals was dead wrong. Martin Shkreli and friends bought up the majority of the company over the past couple days (at under $2 per share on average) and their SEC Form 4s after the close yesterday caused a massive short squeeze that sent the stock up to …

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Oct 26

A Short blog post of much importance

If you come across a bear and decide to run, what matters is that you run faster than the slowest person you are with, not that you be able to outrun everyone you are with or outrun the bear. This same sort of logic applies to trading, too. You don’t need to be the smartest …

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Oct 23

What is your edge: Real estate edition

As a hobby I dabble in real estate. It is quite different than day-trading stocks in many respects but it shares some important characteristics, the most important of which is that to consistently make money you need to have some edge. I wrote about the importance of having an edge in my classic blog post …

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May 11

Riviera Tool Corp $RIVT does a NEST

When people ask why I prefer to trade penny stocks and preferably OTC stocks, my answer is that I prefer to trade against people who are less intelligent and experienced than I am. Considering all the smart people working at hedge funds I would likely be less intelligent and less experienced than the people trading …

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Jun 19

Global Gaming Network (GBGM): First the pump, now the big dump

The GBGM pump has been one of the more interesting pump and dumps of late. It started on Friday June 8th around the open with pump emails from (disclosing $200,000 in compensation). I thought the email was simply spam because I could not remember ever signing up to pump websites with that email ([email protected] …

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Feb 18

We are all in this together … or not

Whenever you hear that phrase, “We’re all in this together,” be very, very cautious. That is what scammers will say to convince you to do stupid things with your money (like buying pumped stocks) and what both hucksters and even non-fraudulent trading gurus will say to try to get their hands on your money. The …

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Dec 22

Do you even know what you don’t know about AMCORE Financial?

One trade today, a short of AMFI … I would’ve played it bigger and held on longer but I am just finishing up my SEC Filing DVD. You probably only have a few days to a week left to order it at special pre-order pricing. For more information on Canopy Financial and Jeremy Blackburn, check …

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Dec 16

Trade recap for December 16th: Failing utterly on SNSS

I have updated my disclosures and disclaimers, which is now upgraded to a terms of use. Please read it: I suggest reading the amusing exchange between Tim Sykes and The Lionmaster about EONC today. Here are Lionmaster’s first comment and Sykes’ first reply. +    BOT    3,000    SNSS    false    Stock    1.850    USD    DRCTEDGE    08:09:08       …

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Nov 18

The seven rules of trading

I post this today as a reminder to anyone who is caught short in the big NLST short-squeeze. Sometimes I’m asked why I don’t make more money. I have two responses to this: first, I am not actually a very talented trader; second, I trade for a living, so my goal is to make a …

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Nov 13

Trade recap for Friday the 13th: Previous resistance becomes support; set stops accordingly

I have to be the only one to lose money going long NLST today. Oyvey. After recording the video I bought 50,000 VGPR at $0.0201 and sold 50,000 at $0.021  +$23.62 realized BOT    2,300    NLST    false    Stock (NMS)    2.3200    USD    SMART    09:32:00        11.50 SLD    2,300    NLST    false    Stock (NMS)    2.1700    USD    ISLAND    09:33:56       …

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