I decided today to do battle with the mouth. He really is a nice guy and means well but his viewers do not trade his recommendations like they should. There were 3 last night - KOP TRN and DRI - his main recommendations.
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Each night I look at the ones most likely to move taking a good look at the after hours market. KOP traded as high as 27.70, ended at 27.45 and had started at 26.65 (yesterdays 4 pm close). TRN numbers were 48.75, 47.50, and 46.75. DRI numbers were 44.50, 41.35, and 40.70. So the plan for all you home gamers - is to try to figure out if at 8 am there is going to be enough interest to try shorting at that time or to wait until the opening. His 4 lettered stocks under $20 are much more likely to be shortable at 8 then any high priced or NYSE stocks. Last nights were all 3 letters stocks and ones without a great deal of volume - hard to play but I was determined. You watch the action at 8 and/or 9:30. Sometimes these work out were you can short twice. Sometimes it is even crazier were you can short, go long, short again and then go long again. Regardless - the mouth puts them into play. You try shorting them around yesterdays after market high with a minimum target of the after hour low and if you get lucky - yesterdays close. The tricky part is when to pull the trigger.
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All 3 stocks looked like there was not going to be enough volume to play until the open - correct guess. I wanted to short KOP in the 27.70 area - TRN somewhere above 48 and DRI around 41.45. I caught KOP at 27.70, TRN at 48.12 and had an order for DRI at 41.40 but pulled it thinking I missed but 5 minutes later it would have gotten filled. So I had good entries but a smaller number of shares than I would like. I then covered too quickly on both and left too much money on the table. I was nervous about the Dow opening over 13k and being short. Such is life and tomorrow is another day. If you play the big mouths stocks correctly - you can make a lot of mad.. er.. I mean fast ... er... I mean easy money.
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The numbers gross +165, net +155 and shares traded 2000. Work cut my trading day short.
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