Recent Runner Analysis: $CDTI, $SNES, $BLNK, $FWP

Recent Runner Analysis: $CDTI, $SNES, $BLNK, $FWP

Recent Runner Analysis: $CDTI, $SNES, $BLNK, $FWP 1024 546 Steven Dux

RISK VS. REWARD

Playing the game of shorting stocks is undoubtedly a game of risk and reward. Look at it as if you’re playing a game of cat and mouse, all while doing your best through information, research intuition, and maybe a little luck. With every trade, you hope for the best but plan for the worst while most importantly, learning from your mistakes.

Playing the game of

CAT & MOUSE

For example, I was the cat in this scenario when analyzing stocks $CDTI and $SNES due to their insane volumes. Everything from the long term chart showed they had no ceiling, but with lots of research and a little intuition of the afternoon fade, I was able to trap the mouse at a 20%-25% gain.

However, you can find yourself becoming the mouse quickly. I can give countless examples of stocks where trust is lost. $BLNK was a stock that first I tried to short on a green day, but the fact it showed no ceiling should’ve been my indication and resulted in a decent loss on my part. It was a clear example of when to release earnings and to move on from it.

Playing the game of

CAT & MOUSE

For example, I was the cat in this scenario when analyzing stocks $CDTI and $SNES due to their insane volumes. Everything from the long term chart showed they had no ceiling, but with lots of research and a little intuition of the afternoon fade, I was able to trap the mouse at a 20%-25% gain.

However, you can find yourself becoming the mouse quickly. I can give countless examples of stocks where trust is lost. $BLNK was a stock that first I tried to short on a green day, but the fact it showed no ceiling should’ve been my indication and resulted in a decent loss on my part. It was a clear example of when to release earnings and to move on from it.

The moral of the story is don't try to short on the first green day and don't continue to hammer something that doesn't show any resistance.

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