Trade review 2-16-10

Late in the day I tried to take a real position short of AENY, following an alert by Sykes, who entered at 4.60 No shares at IB to borrow, and this is my only funded broker currently, a problem I am working to change which I will detail in another related post. I probably would have entered around 4.59 if shares had been there. It collapsed nicely, down .35 cents from where Tim shorted. He may hold overnight, trying to cover into morning panic or a gap down.

I tried to short at IB SQNM on its vertical spike late mid day, with a limit @ 5.40 missing by a cent. The gap from last September nearly has filled, which before the fall had been at 5.42. The result was a missed chance, because the stock peaked out @ 5.39 and faded, closing at 5.17.

I mishandled a paper trade early of breakout continuation long PIR, which had gapped up, spiking. Then tanked back to near key 6 support, which had been previous resistance. I got impatient with the trade when it did not bounce as fast on volume as I wanted. As I noted in an earlier post, one must give trades time that are not yet working, but have not proved themselves wrong. Unless it had dropped below 6, I should have sat on my hands. The result was a missed chance as the stock closed at 6.35 while I had entered at 6.10 long, selling soon after at 6.09 for a small loss. Post your trading rules above your monitor and vow not to break them!

I papered a very risky play of an early pump, going long with Reaper on ISPI in at 0.2390. If it goes well, gapping up as hoped, I plan to sell shortly after the open or even premarket, depending on events. I am slightly red on this.

Be aware the paper plays are usually very small positions, because they are strictly for action when no real plays are possible or advisable. They merely serve test out IB's TWS interface/booktrader as a repetitive exercise and to test out strategies or for entertainment. I do not care about the P&L results, only the logic. I still hold TSHO short on paper, down less than before somewhat, and am waiting to see if it collapses.

BOT    200    PIR    Stock    6.100    USD    ARCA    08:49:59        1.00
SLD    200    PIR    Stock    6.0900    USD    ISLAND    08:59:32    BookTrader    1.00
BOT    200    ISPI    Stock    0.2390    USD    SMART    13:49:18    BookTrader    1.00

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