Nothing interesting today, except for the trade I passed on, FONR.
Daily profit: ($0.00)
Disclosure: No positions. I have a disclosure policy.
SEC standardizes rules for canceling erroneous trades
The SEC has enacted a new rule for busting (canceling) clearly erroneous stock trades. Previously each exchange has made its own rules.
The rules force exchanges to investigate potentially erroneous trades within 30 minutes, and to resolve the matter within 30 minutes thereafter.
As well, exchanges can only consider canceling a trade if the share price exceeds the last public sale price by more than 10 percent for shares priced under $25, by more than 5 percent for shares priced between $25 and $50, and by more than 3 percent for shares priced at more than $50.
See article here. Also, prior to this rule exchanges could take hours to cancel trades.
Disclosure: I have had about four trades busted by the Nasdaq, wiping out over $15,000 in profits. Two were on fat-fingered shorts, one was a buy of Google when the exchange was having computer issues, and one was a buy of GVBP in pre-market trading for half the bid price.
Watchlist for October 6th: Radio Ga-Ga
Investors are going ga-ga for radio stocks. ROIAK, RGCI, CMLS are all radio stocks. It pays to know industry groupings and to know how different industries trade.
ROIAK – This is the most interesting to me due to its big volume big move. Long on strength, short on weakness.
RGCI – Has a much smaller ADR.
CMLS – Again, a much smaller ADR.
MIC – Nice breakout appears imminent at $9.50 – $9.58. Has a history of runs of white candles, although its ADR is not large.
QSFT – Nice breakout. Had an upgrade and a new product notice, not sure if there will be continuation. Long on green, otherwise I’ll ignore.
Disclosure: No positions. I have a disclosure policy.
Trade recap for October 5th: Yawn
I know I’ve been getting a ton of comments on each post throughout the trading day most days as readers discuss stocks. Would anyone be interested in me hosting a chat on this website? The likely program would be Parachat (used by InvestorsUnderground and TimAlerts). I would charge $9.99/month to cover the cost of hosting the chat and to compensate me for moderating and contributing to it. Please leave a comment with your thoughts.
I sold EPGL at $0.002 after making the above video.
Daily profit: ($99.00)
Disclosure: No positions. I have a disclosure policy.
The long-term outlook for every penny stock
As demonstrated by Skinns, Inc. (SKNN) long-term chart. See my write up on Skins from two years ago on my GoodeValue blog.
Disclosure: No positions. I have a disclosure policy.
Watchlist for October 4th: Not much
Nothing exciting on watch. Seriously. This time I’m not just being lazy; I found no exciting setups.
LVCA has a nice breakout on Friday but I don’t play OTC BB breakouts. It is a pump (see the comments for details).
DYAI also a pump I think, on short watch, although I think it has another big up day in it. (Thanks to Preston for bringing it up in the comments below. I added it to the watchlist in response to his comments.)
Here is a chart of GSAE for posterity.
Disclosure: No positions. I have a disclosure policy.
ONCY's lesson: Don't sell a stock if it is banging the offer
I messed up an easy trade on ONCY today. Lesson: if a stock keeps trading only at the offer (ask) and not at the bid, and the bid keeps rising, it is probably going to continue to go up.
+ BOT 1,300 ONCY false Stock (SCM) 3.220 USD SMART 09:32:08 6.50
+ SLD 1,300 ONCY false Stock (SCM) 3.300 USD ISLAND 09:33:20 6.50
Here is a screenshot of the time and sales from right before I sold (I sold at 9:33:20). It actually was not just printing at the offer, unlike how I remembered, but it was at least balanced between bid and offer and the bid did not drop after hitting 3.26.
Daily profit: $91.00
Weekly profit: $3583.25
Disclosure: No positions. I have a disclosure policy.
Trade recap for October 1st: Boring!
Boring day. No watchlist tonight … I’m going to attempt to have a life for one day. I’ll post a watches in the comments to this post.
Daily profit: ($3.00)
Disclosure: See my disclosure policy.
Update on trading Tim Sykes' system
My fairly consistent profits from trading using Tim Sykes’ system have continued. Despite some sketchy trading, my profits have been helped by the plethora of pump and dumps recently and me scalping TimAlerts for quick profits (in fact, my recent trade of RODM nearly paid for the TimAlerts lifetime subscription that I bought a year ago). I thank Tim for all he has taught me and I heartily recommend his Pennystocking Part Deux DVD to anyone who wants to learn how I and he trade stocks.
(click chart to enlarge)
Note that the profit on this chart does not include the profit from my watchlist longs, which are definitely in the style of Tim Sykes. As I write this I have accumulated $1770 in profits in that strategy over the last 40 days. See my recent detailed report on how successful those trades have been.
If you like more detailed statistics, here is a histogram of my profit margin on Sykes-type trades:
(click chart to enlarge)
Unfortunately I am not the most experienced with creating histograms in Excel. No trades fall below the -16% return bin, but eight trades generated more than 22% profit (they are just thrown into the 22% bin; the largest profit margin was 51%).
Disclosure: See my disclosure policy.
Trade recap for September 30th: Pumpty dumpty sat on a wall
The next pumped up OTC stock that is due for a fall: Nutra Pharma Corp (OTC: NPHC). I shorted this today and covered for an easy $776.65. I had a few other small trades today. Tim Sykes has a good post on Nutra Pharma.
IB trades:
+ BOT 900 VSR false Stock 5.400 USD ISLAND 09:30:10 4.50
SLD 900 VSR false Stock 5.45 USD ISLAND 09:31:50 4.50
+ BOT 400 HOKU false Stock (NMS) 4.105 USD SMART 09:41:11 2.00
+ SLD 400 HOKU false Stock (NMS) 4.110 USD SMART 09:41:51 2.00
+ SLD 10,000 NPHC false Stock (OTCBB) .830 USD SMART 09:46:35 41.50
SLD 500 NPHC false Stock (OTCBB) 0.8300 USD SMART 09:46:35 2.08
BOT 1,500 NPHC false Stock (OTCBB) 0.7370 USD SMART 09:51:14 5.53
+ BOT 5,000 NPHC false Stock (OTCBB) .750 USD SMART 09:52:07 18.75
BOT 4,000 NPHC false Stock (OTCBB) 0.7500 USD SMART 09:52:07 15.00
Daily profit: $781.20
Disclosure: No positions. I have a disclosure policy.