Feeling a little bummed out that I wasn’t able to trade this morning, I began looking for anything with promise as the today came to an end. $EFOI got away from me earlier today and I’m determined to not let something like that happen again. I found out $EFOI was a contract winner before the market opened, yet I didn’t take a position.
As the market opened, the stock jumped from $6.75 a share to $10.71 a share within 7 minutes. This sharp price increase prompted the SEC to halt the stock from 9:36am EST to 9:43am EST as they investigated the cause of the sudden price surge.
No other upward trending stocks throughout the day were within my budget or looked to be runners. I’m not able to short stocks because I use E*Trade and they suck. I’m saving up to open a separate account through SureTrader but that may take a while.
Just minutes before the closing bell, I received a Tim Alert which indicted a possible buy alert. Timothy Sykes, one of the traders I follow purchased $EFOI right at closing and added the following comment.
“Buying this contract winner into the market close, goal is to sell for 40-70 cents/share profit tomorrow sometime as news of their Navy contract spreads, good risk/reward given the stock showed it can spike $3/share in a morning and hold most of its gains.”
In addition to Tim’s awesome recent track record on Profit.ly, he’s also a good mentor and trader. I’ve never held a stock overnight so I decided to buy $EFOI with the hopes of selling it for a profit tomorrow during the early morning run-up. Who knows whats going to happen, but the stock did hold up at $8.00 a share all day long.
In addition, there really wasn’t much going on today in Penny Stock land. I have a hunch that a lot of traders will be revisiting this stock first thing tomorrow. As long as some other company doesn’t announce a major news story, I’m really thinking that $EFOI will be back on everyone’s radar.
I purchased 50 shares of $EFOI at $8.34 per share. I’m looking for this stock to achieve a $1.00 price increase which is possible considering its almost $4.00 price increase today. If I can sell at $9.34 per share, I would net a $50.00 profit. The E*Trade fees for this transaction will be $20.00. I need this stock to go ape-shit crazy tomorrow morning to make any type of money.
Bought 50 shares @ $8.34 = $417.00
E*Trade fees for this transition = $19.99
I’m not feeling nervous, but I am on edge that all of my money is being tied up in this single trade. If you’ve been following me up to this point, you know that I started out with $500.00. I’ve had 2 mediocre trades and I’m down $36.00 due to E*Trade fees.
Starting right now. I need to go big, or go the fuck home!
I’m questioning my abilities and/or lack of abilities as a trader right now. It’s clear as day that every trade I make will need to be like this one. I need to go balls to the wall and risk everything I have, on every trade to overcome these ridiculous fucking commission fees. I’m stuck with E*Trade and cannot withdraw my money for 30 days.
I believe there is some sort of SEC rules that says you can’t transfer money from a new account to an external source for 30 days. Even if I opened an account with SureTrader and paid $10.00 per round-trip trade, I would still need to be go balls out every time just to make $50 to $100 at best.
Now I know why everyone says to start with $10,000. That’s right about the sweet spot where you can make $100 to $200 a trade by gambling only 10% of your total funds. I just need to get myself to $1,000 some how and continue going balls to the wall until I make it big or strike out hard.
Hopefully tomorrow morning I’ll get to watch $EFOI climb like it did today. I’d be nice to see it jump 1 to 2 dollars first thing tomorrow morning. My mental stop loss will be set at $7.50 a share as that’s where it held support today.