A long long time ago, I can still remember how that music used to make me smile. And I knew if I had my chance that I could make those people dance and maybe they’d be happy for a while. Wait, what? I’m sorry, let me start over.
A long, long time ago, I can still remember when I allowed ICLD to totally blow my account. And I knew if I had my chance ……dah, dah, dah, dah, dah, dah, daaaaaah. I’m failing miserably at coming up with a rhyme. ANYWAY……….
Scott remembers this story. I had gotten involved with ICLD well before I started learning anything from him. I’m quite sure I would have NEVER taken a position in this stock, ever, had I been under his guiding hand. NEVER. One more time NEVER. Without recounting the whole story, the gist is that I REFUSED to let go of a losing stock. This is a classic mistake of beginners. CLASSIC. And guess what? I still haven’t let go LOL!!!!!!!
Before I met Scott, I knew nothing about trading, nothing about how penny stocks are pumped and dumped, nothing about trade set ups. And I bought this piece of crap as it was going down and I held on through split after split after split. Last March, it had a nice little rally and I dumped half my shares. Don’t ask me why I didn’t dump all of them. Okay do ask. Because I’m an idiot okay! Or was at least, at the time. And to make matters worse, I traded in and out on the way down from that rally. I did make some good short term trades, but why I didn’t totally get out of the full position is still a mystery.
I ran into a big problem in, I want to say June, when they did another split and the stock actually stopped trading. I couldn’t access my shares to trade them for a couple of weeks and when all was clear, well folks, I was down $10,000. What a disaster. How could I have allowed this one little crappy penny stock to take out half my account? And what should I have done to prevent it?
#1 Buying a stock on the backside of an uptrend (top) only makes sense if you’re trading the bounces and getting in and out.
#2 Wishful thinking won’t get you anywhere. No matter how great a company seems or the technology they promote, the market is bigger than your hope.
#3 Stick to your stop loss. Whether it be 5%, 7% or 10%, Just stick to it. Take your loss, then take your cash and find something that has a higher probability of working.
#4 If you’re losing, sell into a little rally. At least you’ll lose less.
Okay, so anyway I’ve had these 575 shares that used to value $10,000 sitting on my account with a value of something like $40. My ego and anger would absolutely not allow me to sell them. At this point, I’ve just been curious as to what will happen with this company. The loss is there, but with some pumping through some clever PR, maybe I could make some of the losses back.
This morning, the company put out some PR, good news with earnings or something like that. I didn’t really care what it was. I just wanted to watch the chart and apply everything I have learned from Scott and get a good trade out of it. And I did. Not only was I able to start selling off my original position, I took a new position at .15 and sold at .25 for a 66% profit. I still have a partial position from the original shares just for fun. Like I said, I’m more curious than anything to see how high they’ll pump this thing. But I’m glad, with the knowledge I’ve obtained from Scott’s mentoring, I felt completely comfortable with my entrance and exit points on the trade. Definitely, one of the more exciting trades I’ve done lately.
So what’s the moral of this story? Let your losers go. Just let them go. AND, listen to Scott’s videos. You’ll learn a hell of a lot.