I placed my bets too early on the penny financials. I went long on a group of 5 of them. BKUNA, SCA, ABK, DSL, and RDN. I spread my money and waited. I could have suffered big had I gone all in on one. RDN fell over a 1$ on my position. These are penny stocks, %age wise, the movements were significant. I held through some minor red, but slowly, the cummulative losses had me worried. I covered my long positions and my account is down $1500. Its tough. This means its back to shorting pumps for me. Chasing momentum plays is hard. Shorting pumps requires waking up on time and patience. Further, all of this intense charting i've been doing keeping track of the penny financials and the usual lot from the % gainers list from yahoo.
My stocks broke their 52 week lows. I took big losses on them. My account has been corrected. The most important thing is the lessons i've learned. I really am not in the place to take positions like I did. Seriously, I bet on a government bailout. I was way too cocky, and my account was not big enough. This is why i'm down over 1500$ at the moment. In fact, I think this is a lesson that extends beyond account size. Shorting pumps is so easy. Its just waiting for the right price break. Seeing stocks like OPTR, DIN, and DDR had me ready to get a piece of the action. I was ready to break 10k in one position. People in GOTS may do it every day, but I'm going to be working slowly back to even. From there, I anticipate continueing the shorts to 10K as I originally planned.
Despite my mistakes in the penny financials. I know they are LR buyins. ABK broke 1 dollar today. Anything that breaks 52 week lows is on my radar for long positions. Checking extended period MAverages wouldn't have predicted this dip either. Credit ratings cut these corporations down, and they are part of why DJI isn't at its top either. Auto corps are stealing media at this point. Once the fluff dies down, I want the small lenders to get the help they need. ESPECIALLY if the automakers get what it looks like they might.... a piece of the FED.
