Friday, November 20, 2009
Tim Sykes' AENY trade, Nov 19, 2009
I continue building a database of Tim's trades on the basis of trade log on his site for research and education purposes. What interests me is not so much when exactly the trade was entered intra-day but rather, the longer time scale context in which it was placed. Since selecting trade ideas is the key to success in penny stocks, the goal here is to reconstruct the selection criteria, not the details of trade execution. The trade was closed Nov 19, with buy level at $2.80, sell level at $3.02. According to public data on Tim's site, this is a long trade entered on Nov 18th -- and that's essential to know. It's interesting again at what price level this break-out was bought, and note that even though the next day opened with a gap upward, the stock was sold -- which in this case proved prudent. So again, ignoring technicals when closing the trade once it's profitable is the thing I take home from this trade -- it could be a chance or it could be a time-tested wisdom.