Shared by
snaxatrillion
really wanted to have more size on this one but still solid trade, just sad I could have doubled it easily, good entries.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2020-04-09 09:30:07 | CLSK | sell | $3.800 | short |
| 2020-04-09 09:52:56 | CLSK | sell | $3.740 | short |
| 2020-04-09 10:09:28 | CLSK | buy | $3.180 | short |
| 2020-04-09 12:49:01 | CLSK | buy | $2.420 | 0 |
Comments
snaxatrillion
coltenroney
How often do you find they don't have shares to borrow with small cap stocks? I would've had a green day if I shorted this :(
@coltenroney not very often. as long as you're there early to get them because they do run out. for instance a 3m float company that's gapping up will probably run out of borrows by open so u gotta purchase the locates if you even think you might want to short it later. cost of doing business. i have locates go unused all the time
TheTapeTrader
Been looking through some of your trades, I am impressed. You seem to be far more shot-biased. Looking to short lower priced stocks on 1 day of upward momentum. You will need to have some nerves of steel for that. You even jump into a stock in the first few minutes of opening. How do you decide when to enter a stock? I noticed a few trades where you allowed stock to more 30 or 40cents against you before it drops and you make a tidy profit. How do you decide a stock is too strong and you exit for a loss?
@olugardner thank you for the kind words. The gap and crap strategy has been working well lately but yes i am far more short biased. There are many factors I consider when entering these positions but generally strength right off the open is quickly sold off, the problem is i rarely cover enough, holding out for the later unwind. Small caps are so volatile that timing them is very difficult so i have a lot of small entries, hopefully resulting in a decent average. I generally have no set stop out level but a hod break after the opening rush then basing above it would definitely have me size down or exit. Another thing I’ll point out is that this strategy wins often with wide stops, but when it is wrong, it is usually a large loss, but they happen so infrequently that it doesn’t phase me. I’m working on refining my stock selection for this setup, there are red flags (e.g. high short interest or company profitability) that will make stops tighter
@olugardner and make no mistake it took years to get consistent with this strategy and tons of losing. But in general, trading is about developing a bias given what the market is telling you, then positioning in such a way to not get stopped out by market noise. If market makers see that too many people are short, they want to take your money by ramping it until they find your stop
Throne
@snaxatrilion do you use DAS Trader Pro or CentrePointer Trader and why? I assume executions are faster using DAS trader? I assume you also get access to same stock investor using either platform.
@olugardner I use DAS trader pro. The platform runs well, rarely has glitches and uses very little cpu. They have 100+ routes (some offering liquidity rebates), great execution, simple programming of hotkeys and various data packages for level 2 etc. I’ve never used centerpoint trader but it’s more about your clearing firm, they both use the same one: your selected clearing firm which I use Vision, though I’ve heard that Hilltop has just as good of locates. I use E*TRADE a little bit for scanners and options data
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Great Trade. Which broker do you use as my broker does not have many stocks to short