Yesterday, I bought 200 shares of $SHIP.
Yesterday was the end of a 3 day run for other shipping companies like DCIX, TOPS, GLBS and most recently RLOG.
SHIP gaped up yesterday on positive earnings and was testing the intraday high with less than an hour left in the day.
RLOG ran yesterday on no news from $0.48 the day before to a high of $1.93 right at the market close.
I bought at $1.59 after it double topped, it looked like it had a strong rally from support towards resistance. (First mistake)
SHIP triple topped at $1.63 for a single minute.* (First bad sign after purchase)
For the next 50 minutes I anxiously waited for the market close.* (Second bad sign after purchase)
I would have sold and waited until closer to the end of the day but I didn't want to pay comissions 4 times (second mistake)
I lowered my mental stop loss by $0.05 and hoped and held while I watched SHIP dance off my new lower mental stop loss. (Third bad sign and mistake)
It cracked in the last few minutes.
I sold in the first 5 minutes in the AM to at $1.20.
I closed at $1.16 as the rest of the shipping stocks collapsed today
DCIX was the most volatile, it was as high as $28 on November 6 only 2 days prior
TOPS was second most volatile and went as high as $3.55 at the open on Nov 7, after that it was a violent crash and a gap down the next day which least to $0.85
RLOG was at $0.45 all until the morning of the 7th, where it gaped up to $0.72 and closed on the high at $1.93 on no news. Today, as the penny stock shippers imploded RLOG lost 63%. Woulda been a good short as there was signs that DCIX and TOPS where imploding and RLOG ran on no news.
Friday the 3rd was when DCIX and TOPS started running and GLBS has a small spike in the same time frame as the other two but it wasn't as violent.
On the 7th GLBS was as high as $2.26 in the morning.
Roland, one of Tim's top students, made 15.8k (47.8%) by buying GLBS for $1.10 on the 3rd when it showed some sign of life and selling it on the 7th for $1.67.
Always remember the taste of bad sushi
Always wait to see what happens when a stock is about to test resistance/ support before making a decision
Always cut losses quickly
Pretend like there are no comissions
There is always a better play
Even on good news if stocks in the same industry are crashing it doesn't inspire optimism
Create watchlists of volatile penny stocks and ones with high volume by industry, watch for plays on sympathy spikers like Roland's