ERI IPG RMTI XIDE DEPO DRL BIDZ GYMB OPK ARTG NED PERY INWK WRSPQ LTXC BUF MCGC ROIAK HZO STEC
Shorted GNVC again yesterday after it went red,good again for the 2nd day in a row,watching.
Watching for a HSNI pop/drop also...been a great scalper of late
VTEX crushed again,down to .08 now from .63 Monday!
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14 comments:
Muddy,
For the past couple of days, there have been relatively big rallies. Today DOW shot up right into the close.
How do you handle such situations? Do you take profits quickly, cut losses short, or hold out with the firm belief that the bottom is yet to come?
After 45 years I don't pay attention to the market...only individual stocks...in that time I've seen it all..most times during the day I don't even know if the market is green or red,only by watching the hod/lod list do I know if we are rallying or falling..I never even glance at the market numbers,I'm too focused in to the price action of the stocks I'm either in or following
Thanks for your reply. It seems majority of your most profitable trades are shorts nowadays, but I know you do scalp both up and down as well and have big run-ups. I just listened to your interview and you mentioned previously you only did long and never shorted.
What was it caused you to start shorting?
Yes I go about 80/20 short now,even on scalps and I only feel safe holding o/n short,ones I feel are pretty junkie stocks,very very few long holds,rare.
Plus if a short goes against me,most times I will add on the way up.
I will NEVER average down on a long,ever.
Funny,that interview was in Nov of last year and I never shorted then.
I didn't short until Jan of this year so I'm still new at it...shorts are the MAIN source of my income now..
I am so lazy ,I always knew these under $5 junks fell and often hard...but I never researched that you could actually short these on brokers like IB,TOS,Speedtrader,etc.
I had just always read/thought it couldn't be done...after finding a post on my Muddy Stockfetcher website about it and Tim Sykes blog and reading it could be done I was in hog heaven.
Now I short with a vengence.
I have no connection with IB whatsoever other than a customer...but the available borrows there are amazing...even on under .01 stocks that are hardly even traded!
Muddy,
If you don't mind sharing, which positions you are currently holding overnight, and what is your exit strategy for such junk stocks? How do you know enough is enough? Have you shorted a stock that went up big time and you had to take a loss?
Thanks for all your kind help! Your blogs and your contribution in the chatroom are invaluable.
Anon...I have a of bunch short side holds
LVS DDR DRYS LEA BEE FCH PSUN BQI CROX SOLR
The rest of the account I daytrade.
Yes I got smoked on JRCC.
I shorted early in the year at 13.
I finally threw in the towel at 32.
Then it ran to 62 but now sits at 6!
Wild.
Muddy,
What type of orders do you typically execute on entry and exit of your shorts and why?? Thanks for your time and willingness to share!
My exit strategy is when I feel i've made enough profit and or the stock stays green awhile of is flattish too long,and the money can be better used elsewhere on a fresh trade.
Honestly I haven't had many shortside losses,because I only enter with about 1/20 to 1/30 of my whole account on the 1st short entry I can afford to double up if the stock runs on me ,then when it does fall I make out even better cause I'm doubled up.
This is why I didn't start fulltime daytrading until I had 2 years salary saved up to hold me over.
You need the ammo,if underfunded you end up trading 33 or 50 or 66% of your account on 1 trade.
Talk about "scared" money...no wonder folks get so antsy on any little price movement.
Don't kid yourself...if you want to trade fulltime you need fundage to free wheel...if you don't you'll get shaken out time and time again if you trade the super volatile(which give the nice gains) stocks I do.
RR,
95% of the time I use market orders...I just push the buy or sell button!
At least how much capital do you think is required for shorting stocks?
How much do you keep in your trading account normally nowadays?
If I remember correctly Muddy mentioned in his interview that he had around 75k savings and 75k for trading when he went full-time trading. In the interview he also said something like he resets the account back to 35k each month, putting the rest into a mutual fund.
In this entry: http://darksidetrading.blogspot.com/2008/09/watches-924.html
He said he keeps around 60K, so that he can hold some shorts and day trade the rest.
Muddy...I'm always taking notes from you sir! I absolutely love your trading style.
Anon...
I'd say to give yourself a fair chance at least $10k is needed to short,I'd go with $2500 each a trade if I was at $10k...of course $25k is ideal,then you beat the pdt rule plus you can add to a few of your positions as seen fit,without overextending the money amount in 1 position.
I now keep $90k in my trading account at all times.
Because of market conditions I want to take advantage of as many shorts as I can...it won't last forever this opportunity,as of now I have 10 holds short and daytrade the rest of the account,some longs/most short.
Thanks for the kind words, IL Torello
Hi Muddy,
Thank you for taking the time to reply to the comments.
I understand you use around 1/20 to 1/30 of your account per trade, which means for a 90k account, $3000-$4500 per trade.
Do you have a predefined maximum loss per trade? For example, if we use 6% (I saw this number somewhere in your blogs), then if a trade loses value by more than $180, then you bail out.
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