+$345 today. VRX and MBRX. It’s days like today though that can create serious stubbornness issues for traders.
You will see in the chart below that I tried two shorts on MBRX. The first short I took 1/2 off when it held green and the other half at my average. I shorted again when it looked to be rejecting 3.60. It held green again so I took that off just before my average. Now, it would be easy to regret taking my positions off as hindsight shows that MBRX finally tanked… BIG TIME, however, in my opinion, it would have been wrong for me to have stayed in as it was contrary to my trading plan. Look at SPEX for example. Had I had the borrows and played it the way I just described…holding my position and just adding…I would be so upside down and likely would have stopped out in the 4.70s with a massive loss. Even MBRX this morning. What if you got stubborn on that HUGE para from a morning short?? MBRX this afternoon could have just as easily spiked above 4 on that last run. The fact is I stayed safe. Yes, staying safe seriously minimized my profits today, but what about tomorrow when another SPEX or MBRX comes along? These low float runners can be dangerous. There is no room for stubbornness. I have seen them go from $1 to over $100 (no joke!). I have seen fellow traders blow up, heck I have personally blown up two accounts as well by getting stubborn. When they are holding like MBRX was today it can get ugly fast. I am ok missing the gain today because there will always be another one. The point is, it is so important to stick to your rules and trading plan on these types of plays. You cannot let stubbornness get the best of you if you want to short low floats.
@AT09_Trader made a comment today that really stuck out to me. He said, “If you are a short seller and end green today u have a bright future.” I think he said that because the reality is these low float plays today were hard. Very hard! If you came out green then you stuck to some solid rules and traded very well. You could have been mowed over if you let stubbornness or poor trading plans get the best of you. I need to take that comment to heart and not let the gains I missed out on bother me, but instead be grateful that I traded well. (and if you lost $ today that’s not bad as long as you stuck to your rules and plan, that’s the point here)
I live to fight another day and I’m grateful. I will not allow the missed profits today create stubbornness in my trading on future plays! I am committed to quality trading, not gambling.
Now if you want to see poor trading… look at my VRX exits below. Yeah, still need to work on keeping a piece to maximize gains! lol! I’ve been doing well on that all week just none of them worked out. Had to take them off at breakeven. Wouldn’t you know the one I don’t keep some on ends up tanking all day. Such is the life of a trader!