I gave my kid a hot stock tip, I missed out. Sigh

[Walt Longmire]

Called him this morning asking about a stock I was checking out that was going up. He bought some. I didn't have enough cash settled in my account. It went up from 1.89 to 4.90 and climbing. I'm just sitting here like........Fark.

[Walt Longmire]

It's at 5.60 now. Kid owes me dinner. Plus the airline ticket to get there.

[willie-pete]

Where is it today ?

 

$10 or $2

 

[RenoF250]

So why are you holding out on us?

[Walt Longmire]

It went up to 7. Pulled back to 3.50 in after hours trading, but still way up from where he bought it. 

[tadbart]

what is this "it?"

 

spill it, Smoke.

[willie-pete]

6 hours ago, Walt Longmire said:

It went up to 7. Pulled back to 3.50 in after hours trading, but still way up from where he bought it. 

He should have sold it at 7.

 

 

 

 

[Walt Longmire]

2 hours ago, willie-pete said:

He should have sold it at 7.

The funds he bought it with hadn't settled yet so he had to hold it.

 

 

 

 

[Walt Longmire]

3 hours ago, tadbart said:

what is this "it?"

 

spill it, Smoke.

EARS

[tadbart]

_{thanks, amigo!}

[crockett]

You don't buy small cap gappers, hold them, and hope it turns out. You have to watch them every single second you are in, with a proper direct routing broker and matching platform.

Shits like EARS can see a secondary offering at any time and every noob will panic sell on the news within seconds after all pros unloaded already. Biggest drops I have seen this year are around 60% within seconds, halted on the way down a couple times with no way out because NOBODY is willing to buy your shares after such news. That can happen when you just got in. 60% of your position gone before it went up. If you went yolo with lets say $30k, over 15k are gone.

And if your ticker doesn't have a gap, it can also easily keep selling off to the point of being delisted from the exchange.

Your chances of being CONSISTENTLY profitable on small cap gappers outside micro scalping is basically zero in the long run. You may make some homeruns, but in the end you will give it all back and then some. Basically buying lottery tickets while getting high on a first few and random hits.

Those very few making money on small cap gappers in the long run hold in average between 1 second and a couple minutes, based on proper patterns on the 10 second time frame. You ride the high momentum hype waves by getting in before the dumb money sheep on RobinHood etc, and selling first, right to the FoMo idiots joining late. Do that a few times on a parabolic runner and you can pull 5 to 30 percent on the ticker, on the day. That is realistic if you had been around for a while (years). Those pulling straight 100+ percent on a runner won't be doing this a couple years down the road, because they nuked their account sooner or later. Seen it countless times.

If you want to gamble, be my guest. If you want to make consistently income, you need to learn what 1.6% of all day traders do right, because the other 98.4% are all losers in the end.

Average time to get into the 1.6% winning bracket? 3 years plus, full time.

Edited December 4, 2020 by crockett

[Walt Longmire]

13 minutes ago, crockett said:

You don't buy small cap gappers, hold them, and hope it turns out. You have to watch them every single second you are in, with a proper direct routing broker and matching platform.

Shits like EARS can see a secondary offering at any time and every noob will panic sell on the news within seconds after all pros unloaded already. Biggest drops I have seen this year are around 60% within seconds, halted on the way down a couple times with no way out because NOBODY is willing to buy your shares after such news. That can happen when you just got in. 60% of your position gone before it went up. If you went yolo with lets say $30k, over 15k are gone.

And if your ticker doesn't have a gap, it can also easily keep selling off to the point of being delisted from the exchange.

Your chances of being CONSISTENTLY profitable on small cap gappers outside micro scalping is basically zero in the long run. You may make some homeruns, but in the end you will give it all back and then some. Basically buying lottery tickets while getting high on a first few and random hits.

Those very few making money on small cap gappers in the long run hold in average between 1 second and a couple minutes, based on proper patterns on the 10 second time frame. You ride the high momentum hype waves by getting in before the dumb money sheep on RobinHood etc, and selling first, right to the FoMo idiots joining late. Do that a few times on a parabolic runner and you can pull 5 to 30 percent on the ticker, on the day. That is realistic if you had been around for a while (years). Those pulling straight 100+ percent on a runner won't be doing this a couple years down the road, because they nuked their account sooner or later. Seen it countless times.

If you want to gamble, be my guest. If you want to make consistently income, you need to learn what 1.6% of all day traders do right, because the other 98.4% are all losers in the end.

Average time to get into the 1.6% winning bracket? 3 years plus, full time.

That all sounds great. I'm not a day trader. My account is up 28% since March.

[crockett]

Just now, Walt Longmire said:

That all sounds great. I'm not a day trader. My account is up 28% since March.

So are you telling me you are investing long-term into EARS?

[Walt Longmire]

Just now, crockett said:

So are you telling me you are investing long-term into EARS?

I didn't invest in it at all.

 

[crockett]

You wanted to get in and missed out because you are either on a none-margin cash account or below the 25k PDT limit, hence with 2T settlement requirement. You would have bought into it if you had buying power available in time. So you would be day trading this. Keeping it for a couple days or a week - aka swing trading - is a form of day trading.

As I said, with that approach, you will only waste your time and money in the long run.

And considering EARS as a form of investment is nuts either ways. That **** has been in the shredder ever since, see chart below. That crap had at least 3 reverse stock splits. Without them, they would be long delisted.

03/14/2018    1 for 10
04/30/2019    1 for 1
05/01/2019    1 for 20

 

[Walt Longmire]

My funds hadn't settled yet or I would have bought some, but not a lot. I have other steady gainers where I invest. Being up 28% I must be doing something right.

[Walt Longmire]

Perhaps YOU should be giving ME some winners.

[crockett]

1 minute ago, Walt Longmire said:

My funds hadn't settled yet or I would have bought some, but not a lot. I have other steady gainers where I invest. Being up 28% I must be doing something right.

Steady gainers = investment, and that's fine.

Going long on some solid companies makes perfectly sense. I assume you rode the V shape recovery from the dump earlier this year. Will be interesting to see if you can maintain 30% on the year when the market goes sideways or only gains slowly.

But don't confuse investing with day trading. Totally different game plan, MUCH harder to succeed in, and 30% on the hear through day trading won't pay the bills. Most trade with 30 to 100k because you won't get filled properly on much more on those low float small caps. And 30k profit on the year on a 100k account leaves you with nothing after taxes.

Getting a tip on a hot small cap stock is exciting and all. But if you go in blindly and hold for longer than minutes, you WILL hand you money to the market in the longer run.

Just one example how this often plays out:

1. You go in with 500 bucks on a "hot tip" and end up making 30% on 1 or 2 days. Feels awesome.

2. You keep doing this a few times. You make 5%, 12%, lose 5%, make 40%, lose 10%, make 60%, you get the idea.

3. You think you have figured it all out and go in with your growing account.

4. 4 or5 months down the road playing these small cap gappers you get hit by one of those secondary offerings, or bad news and trading will be halted for DAYS, followed by a massive sell off, and you lose 60% of your grown account. Everything you made in those prior months is gone.

5. Now your emotions kick in, because you realized that you wasted several month of time. You want to get that money back and fall into the so called trap of "Revenge Trading. Meaning you will go back in with your remaining account balance and try to make up what you just lost in a couple minutes. Your risk management is out the window and your ego is in control. Needless to say, you opt for bad trades, and start losing all your budget on it.

Many come back later on with a fresh account, just to repeat it all over again.

I'm a member in 4 huge day trading groups, live chats and streams with thousands of traders. I run my own trading server as well with 130 people in it. 98.4% fade out after losing most of the money, within a few months and up to about 2 years. I see it all the time. Every day. For 27 years now. And your strategy is the number one path for failure. Buying into small cap gappers based on a tip or news, holding, and not watching it every single second on a PROPER broker platform. You need to be able to get within 1 second!

If it would be that easy, there would be a couple million traders in the US with 7 figure accounts. Reality is, those that made 7 figures are about 1 in 100,000 traders.

There is the 90 / 90 / 90 rule, only known to institutional traders: 90% of all retail day traders lose 90% of their money within 90 days. If you would trade your "strategy" full time, you would be right in that group. Since you only trade on and off, you will lose that money over a longer period of time.

Up to you, just trying to help you out, its your money after all, but buying into "hot" small cap stocks and "tips", "pumps", "call outs", whatever you want to name it, will leave you behind with losses over time. You bring the liquidity that the few winning traders need.

 

 

[Walt Longmire]

Most of my stocks are large cap big name companies. I have an account with WF where they do all the leg work for me. All I do is add money to it. It has done very well over a number of years. I have a couple smaller accounts with brokers, but I'm not impressed. They barely keep up with inflation. Also have a Roth. I have the one account where I decide what to invest in. Most of it is in a fund that is up 32%. I have bought stocks myself in it like Coke, PFE, and others. Actually just sold the Coke for a nice gain.

[crockett]

31 minutes ago, Walt Longmire said:

Perhaps YOU should be giving ME some winners.

 

I see a potential winner on my "Rapid Rising" scanner, increasing volume in my chart study script, and on Level 2 real time data from NASDAQ, the second it is happening.

There is no such thing as working call-outs on small cap gappers. That's a myth. A trap for noobs to bring in their money and hand it to us.

As I said, for active day trading, especially high momentum small cap stocks like EARS, you need education, a proper computer, fast internet, a pro broker like LightSpeed or TradeStation with DIRECT routing (none of that RoginHood, E-Trade, Webull or TD Ameritrade nonsense), subscriptions to PROPER live data streams, full time seat time in years on a paper / simulated account (or you will lose your money while learning).

Day trading is nothing you can learn or be successful in as a side gig. I don't know ONE trader that survived by going in as a side job. Keep in mind, making some money for a couple month or even 1 year means nothing. Once your trading income paid for all bills, after paying capital gains taxes, for at least 2 or 3 years in a row, you may have arrived.

So many traders thought they finally made it, after a couple years, just to get wiped out when the market changed, or they changed, or they became emotional.

This is my trading station... active day trading on a cell phone or a regular computer, based on tips and hearsay etc will not work out.

 

 

[crockett]

7 minutes ago, Walt Longmire said:

Most of my stocks are large cap big name companies. I have an account with WF where they do all the leg work for me. All I do is add money to it. It has done very well over a number of years. I have a couple smaller accounts with brokers, but I'm not impressed. They barely keep up with inflation. Also have a Roth. I have the one account where I decide what to invest in. Most of it is in a fund that is up 32%. I have bought stocks myself in it like Coke, PFE, and others. Actually just sold the Coke for a nice gain.

 

Investing etc is all good. I'm only trying to warn you when it comes to trading, and stocks like EARS.

[MO Fugga]

You got a sister? Maybe she's single?

[crockett]

11 minutes ago, MO Fugga said:

You got a sister? Maybe she's single?

 

Nope, only child, hated my dad, and spent most of my time sucking in information. One reason why I arrived at day trading... processing a ton of live data is my world. As monotone and sad as it is.

[Walt Longmire]

33 minutes ago, crockett said:

 

I see a potential winner on my "Rapid Rising" scanner, increasing volume in my chart study script, and on Level 2 real time data from NASDAQ, the second it is happening.

There is no such thing as working call-outs on small cap gappers. That's a myth. A trap for noobs to bring in their money and hand it to us.

As I said, for active day trading, especially high momentum small cap stocks like EARS, you need education, a proper computer, fast internet, a pro broker like LightSpeed or TradeStation with DIRECT routing (none of that RoginHood, E-Trade, Webull or TD Ameritrade nonsense), subscriptions to PROPER live data streams, full time seat time in years on a paper / simulated account (or you will lose your money while learning).

Day trading is nothing you can learn or be successful in as a side gig. I don't know ONE trader that survived by going in as a side job. Keep in mind, making some money for a couple month or even 1 year means nothing. Once your trading income paid for all bills, after paying capital gains taxes, for at least 2 or 3 years in a row, you may have arrived.

So many traders thought they finally made it, after a couple years, just to get wiped out when the market changed, or they changed, or they became emotional.

This is my trading station... active day trading on a cell phone or a regular computer, based on tips and hearsay etc will not work out.

 

 

I'm sending you all the money in my change jar to invest for me. Before you laugh, you haven't seen my change jar.

[crockett]

7 hours ago, Walt Longmire said:

I'm sending you all the money in my change jar to invest for me. Before you laugh, you haven't seen my change jar.

 

I don't have a Series 7 license, and I have all hands full trading my account size without any emotional impact. Trading other peoples money will make you trade differently, that's in another league altogether.

This is a hedge funds managers video for his clients, being sorry and explaining why he lost all their money... within a few days... in average over 1 Million per customer. I would never want to be in a hedge fund managers position.