Well it’s obvious I caught some bad luck entering Majesco Entertainment (COOL) on 6/16/11 trying to time the reversal. Just 11 short days later my work trading COOL had milked a solid $4,000 from my account which really pissed me off. As it turns out though, I was fighting an uphill battle because the CEO unloaded 600,000 shares at key support. Unfortunately I didn’t see the form 4 until it was too late. I suppose it’s a good example of why it’s important to cut your losses quickly when a trade turns against you.
As much as I loved that COOL trade, it was hard not to be biter. At the end of the day, however, these are penny stocks and they are volatile so it’s to be expected. Was the CEO’s timing shitty, absolutely… nobody will convince me otherwise — but blaming him is not my style, I’m a big boy and I understand how this game works. I learned early on that losing will happen, but it’s how you deal with you losses when getting back up that defines your future.
So today in chat I alerted GLUU at $4.75 after Zynga hype started to set in (missed my entry by $.01) I knew COOL and MCZ would likely be next so I scaled back into COOL at $2.78 and $2.81 fully expecting a squeeze. See it’s about playing the stock, not my emotions. If I were stubborn and ignorant of a good opportunity or focused on blaming others for my losses COOL I would have missed my entry before the $.25 cent run. COOL is currently at $3.02 in AH as I write and I’m starting to make a dent in that $4k loss with $1.2k profit right now.
Bottom line is don’t blame others and stay focused. I had the right idea with my first entry, just bad timing. With any luck this 15% move will stick and COOL will head to $4 where I’ve said it belongs.