Today has been an interesting day on stock movement, especially for a couple of pumps that have been going for the past week or so.
$ECRY finally crashed after about 2 weeks of continuous promotional emails by Stock Tips, I really wanted to short this stock but I was way too late in the game to be able to secure any shortable shares.
$MEDA is another pump that is still going but that I don’t think I’ll be able to play either for pretty much the same reasons as $ECRY; shortable shares have become unavailable for it.
I also completely missed a play that I was watching pre-market and had contract news, making it ideal for a spike: $CYRN.
I couldn’t find any other plays for today in the stocks that I was watching.
The lessons that I’ve learned today:
- Pump shorts most of the time require a higher capital and higher loss tolerance than buy/selling; this tip was given to me by a way more experienced trader, that sometimes multiple brokers are used to both buy and short the same stock simultaneously in order to balance the gains/losses of the other account until it’s ready to crack
- Pump shorts need to be acquired very early: sometimes 1 week before it crashes, it is otherwise very hard to short at the small accounts brokers (unless you have Centerpoint, which I hear is very good at acquiring vast quantities of hard-to-borrow stocks)
- Hesitating to transmit or to do a trade is just a lost opportunity. Either go or don’t but especially with morning spikes and panics.
- Holiday seasons seem very slow for stocks.
That sums it up, I’m not satisfied how the day turned out, but I didn’t lose any of my money, so that in itself is a success.
Hopefully tomorrow will turn out to be a more productive day.