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Trading Focus and Strategy: Making the Right Moves

The last 2 weeks have been challenging and gut-wrenching.  I have watched as my penny stock investment moved toward a $10,000 loss and, at least on paper, my goals seem further out of reach than they were before.  But after reviewing some of my previous trades I believe I am in a good position to have a major bounce back if I can stomach the roller coaster ride.  I am concentrating on keeping strong trading focus and strategy in place and not deviating from the path I am on.

 

Penny Stock Review

In the weeks prior I purchased 1,000,000 shares of UITA, an up and coming company that has ties to the airlines.  The price has dropped far below it’s high of $0.017 to closer to $0.005, losing about 2/3 of the value.  Stocks that trade around and below a penny can be extremely volatile and this appearance can be extremely hard on the nerves.  You watch as the price sinks and a loss of a few hundred can quickly turn into a few thousand.

Good news came for UITA shareholders.  A related company with close ties to the UITA filed its required reports with the SEC (Security and Exchange Commission).  This increases the legitimacy of the company and the likelihood that the management can indeed turn a profit one day.  This gave me faith that my investment is good.

I am being purposefully vague and holding back a lot of details of this trade.  I will tell the whole story after the trade is no longer active.  A large part of this blog is sharing every detail of why I make the trades I do.  I don’t provide financial advice, only my story.  You are welcome to follow my trades and if you like one follow along, but realize it’s always at your own risk.  This trade is so incredibly dangerous I am purposefully discouraging anyone from following along.  I will tell the full story after I have the ending, whatever it may be.

6/4 Bought 500,000 shares of UITA for $0.0044 each, total cost $2,177.40.

Dave and Busters Cash Out

Back on 5/2, I purchased 235 shares of Dave and Busters (PLAY) for 42.53, you can read about that here.  The stock has been a rollercoaster ride, dipping as low as $38.00.  Finally, the stock rebound and went into positive territory.  On 6/4 I cashed out for $43.55 per share, total sale $10,229.13.  This was a profit of $249.60, a profit of 2.5%.  At this writing, the price has climbed further, as high as $56.00.  A win is a win and I will take it and move on, but once again I left money on the table by cashing out too soon.

Trade of the Week

Every week Trade-Ideas.com releases a trade idea of the week, you can sign up for free.  This week it was Shake Shack (SHAK), as it approached an all-time high price there was a large number of short sellers.  The theory is that when the price reaches all-time highs, the short seller are forced to buy their shares at a loss.  The buying drives the price per the rule of economics.  More sellers than buyers makes the price go down, more buyers than sellers makes the price go up.  When short sellers are forced to buy back their shares, it drives the price up.

SHAK hit a 52-week high on 6/6 and I bought 160 shares for $62.73 each, a total cost of $10,041.75.  The target price they gave was $70 per share.  As the week progressed the price rose but then began to retreat.  I sold on 6/8 for $65.26 per share, total sale $10.436.88.  This was a profit of $395.13, about $3.9%.  A solid profit and well executed per the direction of free expert advice.

GOOGLE

I took some time over the weekend to review the most profitable stocks I had traded with.  Amazon (AMZN) was up 60% over the past year, Netflix (NFLX) was up 140%.  Facebook (FB), Apple (AAPL) and Microsoft (MSFT) were also at record levels making records gains.  As the NASDAQ, which has mostly tech stocks, is trading at record highs, the S&P500 and the DOW JONES were about even on the year.

I looked to a stock lagging behind but ready to join its peers.  Google (GOOG) was one of the only major stocks not at an all-time high so I decided this was the stock to make a bigger profit on even if it took longer.  I bought 13 shares for $1,140 each, a total price of $14,824.95.

Final Thoughts and Notes

I have decided to be less active, I have made several bets and I will give them time to play out.  I have some cryptocurrencies, weed stock, a true penny stock, a big name and even an Initial Coin offering.  One or more of these is bound to bring me a large profit.  Please follow this blog to see where this investing adventure goes.

I transferred $2,000 from my Robinhood account to the E*trade leave only about $9 behind.

I contributed $50 and $105 to my brokerage account and IRA respectively on 6/8 and 6/15.  On 6/14 I contributes an additional $125 from my side hustle checking account.

Thanks for reading and happy trading!

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