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 PEIX
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Posted on 05-02-14 3:13 PM     Reply [Subscribe]
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PEIX- Was my major win this year and ouch, now it has also become my first stock blunder in over a year. Not a happy weekend. Have a good weekend. Should have walked away with my huge options gain..but as the saying goes..greed kills and I'm ouched all over. Options is -double-edged sword. It can give you awesome gain and at the same time..wipe you out. Not yet wiped out. Hoping for miracle in the next 2 weeks which will make me break even or even make another gain..or else..will be saying good bye to all of my gains so far this year.

In the last 2 days, I've become the biggest fool without any help from anyone but me. 
Last edited: 02-May-14 09:56 PM

 
Posted on 05-02-14 10:33 PM     [Snapshot: 73]     Reply [Subscribe]
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I thought you bought stocks not option.

There is saying " If something can make you reach quick, it can make you poor quick as well if things didn't work" Good Luck :)

BTW, I bought some ERII after reading your post @ 4.97. I like their business model and plan to keep it for long-term but pls let me know if you notice something unusual and plan to exit.

I have started to invest in pot sector and plan make ~10% of my portfolio of this sector. Bought some PHOT on last Friday at .20 then it went down the very next day and I had to buy tons at .12 to bring average cost down. I plan to add 4 or 5 more others in coming days, just looking for right entry point. Sounds crazy idea, isn't it?


 
Posted on 05-02-14 11:17 PM     [Snapshot: 99]     Reply [Subscribe]
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accident it was..will be more careful. don't know about phot. ERII -- you need to hope that their are shipping their products to oil and gas industry. If that happens--this stock price will shoot up higher..They had good quarter last time..it may not repeat...you just have the company information on your google alert or something so you can get updates...you must hope that they start getting orders from oil and gas industry. They had their product presentation in Dallas and they have mentioned in their blog.."http://blog.energyrecovery.com/2014/04/energy-recovery-takes-a-stage-at-the-gas-processors-association-convention-in-dallas/" 
you can read these few blogs to get more idea about where they are. I would not consider this is 'trade' stock..but rather buy/hold. Good luck and glad you're so far- in the money. Did you buy GSB also and JVA? I have some more like PWE/WPRT  which I wanted to but end up not buying. :) I have got more stocks on my watch list but all are long-term ones..

i have some options strategies on my mind..if it works..i'll let you know how it worked..give me several months so that i can work in my sand box with real money

more about options..extremely simple....you pay to 'guess' on what will happen to a certain stock in the future...if you think..positive will happen..you buy 'call' options...as 'guessing positive event'..and if you think stock price will tank...you buy 'put options' as 'guessing negative events'...if you're right..you make money..if you're wrong..you lose money..but 'duration' is there..so you pick up some time duration..and buy/sell 'guesses' ...it's basically being..who is a better fortune teller..than who is not
http://www.investopedia.com/terms/o/option.asp

Someone shared with me this 'intermediate accounting' book..and I'll have this book pretty much open on my computer going forward for any accounting related question I may not understand. If you know accounting very well and you can find awesome companies, you're likely to get awesome result from stocks... 
file:///home/chronos/user/Downloads/Intermediate_Accounting_7e.pdf

"I have started to invest in pot sector and plan make ~10% of my portfolio of this sector. Bought some PHOT on last Friday at .20 then it went down the very next day and I had to buy tons at .12 to bring average cost down. I plan to add 4 or 5 more others in coming days, just looking for right entry point. Sounds crazy idea, isn't it?" 

No real comment on this...I guess you're playing lottery here..like my PEIX options play..

someone said..the best strategy is to average up..and not average down..and that's Jesse Livermore.

" Livermore left traders a working philosophy for trading securities that emphasizes increasing the size of one's position as it goes in the right direction and cutting losses quickly."
http://en.wikipedia.org/wiki/Jesse_Lauriston_Livermore 

Happy trading.
Last edited: 03-May-14 06:21 AM

 
Posted on 05-03-14 6:53 AM     [Snapshot: 161]     Reply [Subscribe]
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Beautifool, didn't you buy peix stock? Was it all options ? Thought you had stocks not options...
Like I said since beginning of march market has been choppy and market is not sure which direction to go.. I have pulled most of my money since then...most small caps have pulled down significantly and what scares me more is some of the small cap bio stocks have already pulled back a lot and the overall market is still at record high, what will happen if the overall markets starts to correct and head south....hmmmm

When PEIX hit $18s that was the time I would have sold and walked away... Not saying it won't go back up again but I have learnt to take profits and lock it instead of watching all my profits evaporate... Its the greed that kills us..
Its our human nature that we end up keeping the loser stocks in the hope that it comes back up and sell the good ones very early thinking that it may go down.. All psychology ... Averaging down is just a way of convincing yourself you're not losing much but when it heads south from there then we start to panic and end up selling everything at the bottom and then price starts going back up lol .... Happened to me many times... I have learnt a lot from those mistakes....
I mainly trade bio stocks and so far doing too. +400% in my account so far.. March and April not so good, choppy market....only focusing stocks with strong catalysts these days... Shorting more than going long. Changing my strategy as the market seems weak.
Cutting losses quickly definitely helps...
I like GSB ,on the last spike few months ago I saw some of my trader friends playing it and that spiked during that time. On my watchlist right now waiting for some dip them I may get in...watching on the sidekines . not chasing it I'll let the price come to me if it doesn't there are other better plays !

Good luck guys
 
Posted on 05-03-14 7:19 AM     [Snapshot: 173]     Reply [Subscribe]
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@i-485 - As I said..buying selling $PEIX stock was very good experience..and then 2 weeks ago..I started with options. I had really good calls the first few ones...was up 200% on my SDRL $33 strike price..lost a little bit on my GM call option...and then I saw my favorite PEIX also has options play available. My mistakes on it are 3 things..

1. No experience of course..
2. I was not really sure about figuring out 'what price is the right price' to pay for premium
3. Not realizing that options are extremely volatile (I was up more than 100% with my PEIX call 3 days ago and now I'm down more than 50% on the same shit...lol- I almost sold at the peak..but almost is not enough :)

You do bio tech...if you have $20 or more stock price of biotech stocks..please share with me..I'll use some options strategies to see if it works..

Not knowing what I was doing...I sold all of my GSB shares...with 20% gain..and ended up buying GSB call options..I have until September for GSB to reach $3 and I'll be in the money..Worth a try I thought..

"most small caps have pulled down significantly and what scares me more is some of the small cap bio stocks have already pulled back a lot and the overall market is still at record high, what will happen if the overall markets starts to correct and head south"
"+400% in my account so far.. March and April not so good, choppy market....only focusing stocks with strong catalysts these days... Shorting more than going long. Changing my strategy as the market seems weak."

As someone I know told me that ...his biggest losers were right after his biggest winners..and he recommends..that whenever you have your biggest winner...take a long vacation...I'd recommend you do the same...you're already 400% up....may be a little break is good.. just my opinion. Take a break..is my opinion again!!

P.S - I was almost about to take a vacation until I got stuck with the PEIX options shit..lol..should have sold on Thursday..but shoulda/woulda is not enough..
Last edited: 03-May-14 07:37 AM

 
Posted on 05-03-14 8:08 AM     [Snapshot: 199]     Reply [Subscribe]
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Beautifool--- My goal is to make 50k profits this year..well at least that was my goal when the year started really well but seeing the market conditions i might have to adjust that down to 35-40k for the year ! Let's see if i can do that or maybe i lose it all lol..... who knows... sometimes best trading is to not to trade at all !!!! yeah i need a break i think....this is a good time to take a break as well...

I am not into options i might as well start doing that.....hmm

 
Posted on 05-03-14 8:27 AM     [Snapshot: 205]     Reply [Subscribe]
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In my opinion the best way to judge where the market is going -- is by reading berkshire hathaway's quarterly report. The old man tells enough about where the market will head. I'll be looking forward to read the report summary...even during recession, there were companies that were up..so it all depends on what company we end up picking....and of course, finding the right company is not enough..finding the right price is what counts..good luck with your ambition of achieving your goal..

options are fun...one thing that I have quickly learned is....options need to be diversified. and try to pay as minimum in 'premium' as possible..force yourself to pay the least premium...if you have 10 different call options where you put 200 bucks on each...you only need 2 or 3 winners and they should be obviously big winners....and rest can expire worthless..you'll still be up...i'm going to work on figuring out ...how to best approach...no book is a good book..your mind is the best book..is what I have learned..no matter what you read..if you don't put things in a disciplined way, whatever you read --becomes worthless knowledge like those worthless options that expire..

"Almost all good businesses engage in 'pain today, gain tomorrow' activities." - Charlie Munger ‪#‎BRK2014‬ ‪#‎Mungerisms‬

If you're on twitter, follow the hash tag for an awesome afternoon filled with wise tweets!!
Last edited: 03-May-14 12:11 PM

 
Posted on 05-05-14 12:34 AM     [Snapshot: 323]     Reply [Subscribe]
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Beautifool,

Thanks for your input on ERII, I will keep eye on it.

No I have not bout any of these stocks PWE/WPRT, GSB. Who had alerted these and when? I must have missed that thread. I know you had alerted JVA, PEIX etc but I have not bought any of those.

I have been thinking about to learn option trading as well , I will probably start with small position once I do some study and DD.

Regarding Pot sector, its somewhat similar to lottery as you said but its little bit more than that. I think its medical marijuana will be big industry for next decade. I think even recreational marijuana have chance in some states as they will probably follow CO. Now most of the companies are trading as penny stock except GWPH and couple others. We just have to choose 5 or 6 companies which are transparent and have chance to grow, PHOT, FITX, BRDT, EDXC, HEMP are in my mind . If 2 or 3 out of 5, survive, it will give huge return on the investment. GWPH is a serious one but the prices has just gone up recently, Morgan Stanley has price target of 103 and Crammer has also covered and recommended it recently.
 
Posted on 05-05-14 8:15 AM     [Snapshot: 375]     Reply [Subscribe]
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Nepboy, options is highly volatile and it is time-sensitive. You buy and sell 'premium'. Got out of my PEIX calls. Huge loss. But that's the life of a trader.

"I have been thinking about to learn option trading as well , I will probably start with small position once I do some study and DD." - I'd recommend you pick up a book from your nearest library. This was my major mistake..I started without reading the book. Now I just finished 20% of the book and have understood the overall rules of the game. The other stocks, I alerted but not really alerted..I posted pwe/wprt...after the price already moved up. So, won't call that an alert.

The price you pay to buy premium of options..decays as the expiration date reaches closer..so, you'll normally pay very cheap premium - I call it- 'guess' price..when the expiration date is close..every options expire on Friday. So, it is a weekly thing. And not all stocks have options available. Read the book first (whatever book it may be)..you may even find a book online. Good luck.

Now, I'm working on to recover..Its like in a football game..players get injured and are sidelined for sometime..I'm in the same situation..lol
 
Posted on 05-05-14 10:51 AM     [Snapshot: 411]     Reply [Subscribe]
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your PEIX is taking a big hit today
 
Posted on 05-05-14 12:18 PM     [Snapshot: 436]     Reply [Subscribe]
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It is no longer mine..:)..I took a big hit with it. But that's what you get for trading with emotions. If you plan to play with options, better finish the options book first and then try out. This was my first loss of bigger than normal size - in more than a year. But that's okay. I earned my lesson..lol
 
Posted on 05-05-14 12:43 PM     [Snapshot: 448]     Reply [Subscribe]
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Risk management is the only thing that will keep u in the game. instead of dreaming of changing zip codes, u should learn to manage the risk. There is no need to hold big chunk of position around the earning. That is just a fools greed. PEIX had plenty of technical warnings. It amazes me to see Why u want to be a trader without mastering technical?

First, master the stocks. which is easiest to do, then move into complex instruments like options. There is always a better chance of smarter and professional trader at the opposite end of yr option trade. Remember, little knowledge is always dangerous.
Its my humble suggestions....take it easy.
 
Posted on 05-05-14 12:56 PM     [Snapshot: 467]     Reply [Subscribe]
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"There is no need to hold big chunk of position around the earning. That is just a fools greed. " Actually they had an outstanding earnings..but warrants killed the show. I take your humble suggestion as a very good advice. 

Adding - I do not think that holding a position around the earning is a bad idea either..AAPL $560 strike price call option was available for 75 cents..before it expired. And you know what happened? AAPL stock price touched $568 before the expiration. That was more than 1000% return for whoever held the call options at 75 cents (568-560.75). I'll continue to hold through earnings..But of course with not large position.  

I had too many good results in the last 1 year..So, that's one reason. The rest, I've already explained in my prior posts on how I failed here..Good luck to you and everyone else. It's not only good to share your wins but also good to share your losses. And that's what I did here..as no1 really asked me with what happened or what's happening with my stocks. Sharing experience, making other's aware of what can and can not happen. :)
Last edited: 05-May-14 01:24 PM

 


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