Another Week Of Hitting The Jackpot Shorting Dying Stock
Today, I exited my short on SGX with a wonderful profit of 5.2%.
I shorted it on 31/7/15 at $8.01 and exited today at $7.61. This stock call was posted here on 30/7/15 and as usual, the next day it plunged continuously till I exited today.
Last thursday, I also exited my short on M1 with a nice profit of 4%.
I shorted it on 3/8/15 at $3.11 and exited at $2.99. This stock call was posted on the sniper trade blog 31/7/15 and similarly, it plunged continuously till I exited.
I love to short dead and dying stock. It is the easiest way to profit from the market. These stocks are being dump by the BBs and the latter have their reason for doing so. But some retail investor and ignorant trader pick them up because they are ‘cheap’.
Sometimes I wonder how these people determine whether a stock is cheap, expensive, undervalued or overvalued.
Look at Value Investing, it has different methods of valuing a stock. None is superior than the others.
Look at the recent scandal at noble. There are different methods of accounting for the commodity profit. Each method has their own setbacks.
For me, I only trade and invest according to the chart. If the chart says sell, I sell. There is only one entry signal and one exit signal. I just execute the signal and collect my profit. This is called objective rule-based trading and investing.