0 PSP Picks & Profits Posted by shawn | at 3:34 PM

I have talked about PennyStock Prophet and his picks in my recap often.  I finally was able to compile all the stock picks along with potential profit someone could have made if staked 5k shares, bought at open and sold near highs)  Considering his picks are available free on twitter I say profit while the crazy ride lasts.

For those that are interested, I created the spreadsheet in Google Docs and used Google Finance function to automatically query open, high of the day prices.  It took me less than 10 mins to do. Neat huh?

0 Trades Recap for 11/17/2009 Posted by shawn | at 1:33 PM

Excellent day today due to NASDAQ:NLST, it went up 700% in 4 days and stocks that go up supernova like this usually will be followed by days where it trends down.  Today happened to be a nice downtrend and I shorted when it went went green to red ( dropped below the opening price of $5.65) The green to red or red to green are important psychological pivot points. I'm holding the current short of 5000 shares overnight and possibly selling into the market open tomorrow.

0 Trades Recap for 11/13/2009 Posted by shawn | at 3:31 PM

Well looks like pennystock prophet's run has possibly ended or is ineffective for the time being.  The last few picks haven't been running up that much or at all to warrant any attention.  I'll continue to monitor his picks which are free by the way, no need to sign up his 97$ subscritpion.  He provides his picks on twitter here as soon as the market opens at 9:30AM. I recommend twitter streaming service like stocktwits

On with the recap, NASDAQ:NLST was uptrending since monday. Take a look at the 5 day chart.  Volume really started to pour in since thursday.  I scalped 10, 20 cent blocks thursday and friday.

OTCBB:IMGG had a huge sell off mid-afternoon losing 0.50 cents looking at the 1 day chart below.  This is a great opportunity for bounce plays and I caught the bottom as soon as I got the green candle.  It went up in choppy fashion and I wanted to sell into strength as you should always do with OTCBB stocks.  Scalped easy 15 cents.

0 Trades Recap for 11/03/2009 Posted by shawn | at 4:41 PM

Pennystock Prophet announced that his picks will be released Mon, Wed and Fri only. I have played his past 15 picks and made money on all of them. I say that is a excellent streak. He claims he finds stocks that are greatly under-valued  using his 'secret formula' but in reality he has built enough subscribers that when his alert gets out, the stock shoots up when all of them buy in at a massive scale. It's called the PSP alert effect, very similar to Tim Alert effect and Cramer Alert effect. If you have enough subscribers and the stock is low float, you would be surprised how fast they shoot up. Keep in mind, I trade these alerts for quick scalps only.

Speaking of Tim Alerts, he sent out a alert today:

NYSE:COT was alerted by Tim Sykes. Nice uptrending chart. As per Tim,

Reuters has a story that they sold $215 million worth of debt up from an expected $200 million at 1:30Pm ESt today...I expect a press release later today or tomorrow...stock is 10 cents off its 52-week highs, methinks the press release will spike it over $9 and then potentially momentum traders can push this up to $10 as it'll be a perfect breakout.

BUY +5,000 COT @8.72 LMT

SELL -5,000 COT @8.89 LMT

0 Trades Recap for 11/02/2009 Posted by shawn | at 1:29 PM

AMEX:NVD was today's Pennystock Prophet's pick.  You have to be really quick to pull this trade off.  I have auto-send triggered with active trader on ThinkorSwim platform and makes executing trades quick.  As you can see, I got out of the trade right at top when It was getting toppy.

BUY +10,000 NVD @.26 LMT
SELL -10,000 NVD @.32 LMT

NASDAQ:YRCW was halted pending news at 9.30AM.  As soon it opened at 10AM the stock fell hard from 3.50 to below 2.  I tried to catch the bottom for bounce play.  This is always a risky trade but results can be nice.  Quick 0.22 cents scalp.

BUY +5,000 NVD @1.78 LMT

SELL -5,000 NVD @2.00 LMT

0 Trades Recap for 10/29/2009 Posted by shawn | at 1:55 PM

OTC:GETA had some bad news this morning and saw a whopping drop from 0.60 to 0.17 and started basing around 0.10ish.  The drop is too big and without a doubt I knew it was going to rebound.  Bought at 0.12 and held for a crazy ride.  Sold at 0.25 at the first red candle.  After that I was done for the day :)

OTC:TNUS saw unusal heavy volume and bought at the open to see what it does.  No disappointment here.  Bought 0.64 and sold 0.79 when I saw volume dying down.

0 Trading is simple right? Posted by shawn | at 2:03 PM

Trading can be simple if you make it so.  People traded long before there were computers and indicators. So why do you have so many computers and indicators? Read some excellent words of wisdom below:

“Unless you experience the unpleasant symptoms of being wrong, your brain will never revise its models. Before your neurons can succeed, they must repeatedly fail. There are no shortcuts for this painstaking process.”

Pg 54 - HOW WE DECIDE

“Look, for example, at this elegant little experiment. A rat was put in a T-shaped maze with a few morsels of food placed on either the far right or left side of the enclosure. The placement of the food is randomly determined, but the dice is rigged: over the long run, the food was placed on the left side sixty per cent of the time. How did the rat respond? It quickly realized that the left side was more rewarding. As a result, it always went to the left, which resulted in a sixty percent success rate. The rat didn't strive for perfection. It didn't search for a Unified Theory of the T-shaped maze, or try to decipher the disorder. Instead, it accepted the inherent uncertainty of the reward and learned to settle for the best possible alternative.

The experiment was then repeated with Yale undergraduates. Unlike the rat, their swollen brains stubbornly searched for the elusive pattern that determined the placement of the reward. They made predictions and then tried to learn from their prediction errors. The problem was that there was nothing to predict: the randomness was real. Because the students refused to settle for a 60 percent success rate, they ended up with a 52 percent success rate. Although most of the students were convinced they were making progress towards identifying the underlying algorithm, they were actually being outsmarted by a rat.”

Pg 64 - HOW WE DECIDE

“Think about the stock market, which is a classic example of a “random walk,” since the past movement of any particular stock cannot be used to predict its future movement. The inherent randomness of the market was first proposed by the economist Eugene Fama, in the early 1960's. Fama looked at decades of stock market data in order to prove that no amount of knowledge or rational analysis could help you figure out what would happen next. All of the esoteric tools used by investors to make sense of the market were pure nonsense. Wall Street was like a slot machine.”

Pg 67 - HOW WE DECIDE

TRADING IS SIMPLE:

* Price either goes up or down.
* No one knows what will happen next.
* Keep losses small and let winners run.
* POSITION SIZE = RISK / STOP LOSS
* The reason you entered has no bearing on the outcome of your trade.
* You can control the size of your loss (skill) but you can't control the size of your win (luck).
* You need to know when to pick up your chips and cash them in.

Don't let the rat beat you.

“Since your mind is your most valuable asset and your most valuable lever, you need to be careful what you put in it. Sometimes it is even more difficult to get rid of thoughts and ideas that are already in your mind than it is to learn something new” - Pg 119 WHY WE WANT YOU TO BE RICH

F - Follow
O - One
C - Course
U - Until
S - Successful

- Pg 110 WHY WE WANT YOU TO BE RICH

If the rat is beating you, you are the reason why.

Here are some reading material:

• Fooled by Randomness: The Hidden Role of Chance in the Markets and in Life by Nassim Nicholas Taleb 
• The Black Swan: The Impact of the Highly Improbable by Nassim Nicholas Taleb
• How We Decide by Jonah Lehrer
• Trading in the Zone: Master the Market with Confidence, Discipline and a Winning Attitude by Mark Douglas
• The Disciplined Trader: Developing Winning Attitudes by Mark Douglas
• Why Smart People Make Big Money Mistakes And How To Correct Them: Lessons From The New Science Of Behavioral Economics by Gary Belsky & Thomas Gilovich