Trade #15 – Ebola Craze

In Trades by JCLeave a Comment

Yesterday I went short on $LAKE around $10.00. It was a huge mistake. As I’m writing this article today, $LAKE is trading at $18.00 a share.

This is another Ebola stock that’s benefiting from all of this news coverage. The company is Alpha Tech Ltd, ($APT). They sell protection gear such as Hazmat suits, hoods, face masks, etc. Pretty much anything an aid worker would need to stay protected around an infected Ebola patient.

The likelihood of this company selling millions of dollars in products in the coming days is unlikely. The reason this stock is going up in price is simply based on hype/news. Each time $LAKE goes up, so does $APT.

I traded $APT today because Ebola stocks were hot this morning and it only cost around $4.00 per share to get in. My account is damn near busted. I have like $130.00 in it. Thank GOD for SureTrader. If I wasn’t able to leverage 6:1 on my money, I would be out of the game for sure.

I traded $APT 3 times today. I got burnt so bad yesterday that the wounds are still fresh. I kept getting out of this stock as soon as I made a small gain. I just needed to get back on the horse and trade again. Thats what today was about for me.

APT

I’m beginning to realize that CNBC greatly affects volume. I believe in one of Tim Sykes videos, he mentions that CNBC really isn’t all that important when it comes to Penny Stocks. I’ve been trading without the TV on for about 2 month. I get it now. News from any outlet, whether it be from TV or from the web can effect a stocks volume and in some cases the price.

All of this shit probably sounds so basic to experienced traders.

I’m just starting out. Everything I learn is trial by fire. I lost $200 when I used E*Trade. Now my SureTrader account is down $370. It really fucking sucks, but the things I’ve learned have helped to make me a better trader.

Trade 1

Bought 150 shares @ $4.03 = $604.50
Sold 150 shares @ $4.09 = $613.50

Won = $9.00

SureTrader fees for this transition = $10.00

In the end I lost $1.00

Trade 2

Bought 150 shares @ $4.26 = $639.00
Sold 150 shares @ $4.31 = $646.50

Won = $7.50

SureTrader fees for this transition = $10.00

In the end I lost $2.50

Trade 3

Bought 100 shares @ $4.43 = $443.00
Sold 100 shares @ $4.51 = $451.00

Won = $8.00

SureTrader fees for this transition = $10.00

In the end I lost $2.00

I gave SureTrader $30.00 today in fees. From these 3 trades, I lost about $5.50.

I actually thought that I was making a few dollars off of each trade. Now that I’m doing the math, I believe the reason these small gains turned into small losses is because I was buying and selling using the Market price instead of manually entering a Limit price. I learned another lesson! Please a Limit trade whatever possible.

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