An $80,000 loss in 48 hours
Earlier you read about the loser who pissed away $250,000 on penny stocks, where we watched him rid himself of the last chunk of his life savings. With Mr. $80k, it’s a similar true tale (He is in the Getting Started Chat under the name Rob Learn and will gladly tell you his side of the story) however, there is a twist that we normally do not come across with these losers. Mr 80k is a rare breed, that we felt we had to let you step into his shoes for a few minutes and learn from his costly mistake.
Now we come across penny stock losers all day long and we crush them in 1 to 2 responses before they run and go hide under the “so and so is rich from it” (yet it is never them). However with Mr. $80k, he realized how fucking dumb he was and hit on virtually every major mistake a new trader makes when getting their shit pushed in trading that trash. Buckle up because we are about to experience what it feels like to lose a brand new Porsche 911 in 48 hours.
PSA if you are trading loser penny stocks just DM Trading Experts for a cold dose of reality before you piss away your life's savings. Now granted usually the first red flag that someone is full of shit is when they throw around perfect number “I made $100,000 yesterday” or in this case “lost $45,000 today on SGMD” (in said dog shit penny stock). I have seen this thousands of times and not convinced. A moment later he sends over a screenshot of his portfolio with pride.
(always interesting to see someone brag about pissing away their money)
As you can see he was not kidding. He bought the tail end of the pump and is learning an extremely costly lesson. Now take a peep at his portfolio, (its now 1/31/2018, let's recap where these losers and winners are.
Losers/Cheap Shit = All cheaper a month later
CTNXF - no longer exist, 100% loss, loser
GPOR - another cheap loser, down another 20%, loser
MDVX - down 10% from where it was a month ago, another loser
SGMD - went 50% lower than the price above, was never profitable, loser
Of this bunch the max upside is all of these names have been 0%, while the max loss has been 100%.
Real Companies/Expensive Companies = All more expensive a month later
SHOP - $20+ from that entry
FB - $5 higher than where it was a month ago
MU - $1 higher
Of this bunch, the max upside has been almost a 15% gain, while the max loss so far has been 1% loss.
You play in the cheap sandbox with $1,000 and it's gone, you play in the expensive sandbox and you could have made $150 or lost $10. Choice is yours. Anyways let's get back to the cheap sandbox story.
Red Flag #1 - “Haven’t Sold” when you have a winner this tends to be a smart play, yet when you have a loser, it's a career ender. Let's move on as Mr $80k to see how he is fucked four ways to Friday.
Taking home a loser is like chasing grenades
We started the convo on that big ass red bar from $.40 to $.27 where I told him to get the fuck out because anyone with even kindergarten level technical analysis skills could tell you a monster bearish engulfing bar closing at the low of day is asking for continued selling pressure the following day. He's so wrapped up in the story of this loser that he still thinks stripper like him for his personality.
Red Flag # 2 - Rationalizing dumb shit, he did something smart in the past so he can try dumb shit now. Update no less than 12 hours later, he ended up losing $80,000. What took him a year to make, he lost almost 3 years of gains with 1 stupid fucking mistake in less than 2 days. This is the primary reason why penny stock losers fail. Sure you can brag about your little 100% gainer, however all it takes is 1 loser to take you out of the game. Want to guess how many stocks we traded that went to $0 in the past 10 years? 1 which was GM and it took 2 years for it to die.
Red Flag # 3 - “I will not sell until breakeven” is the nail in the fucking coffin, when your getting your shit pushed in and say that, realize you are fucked. On the flip side, when your in a winner and say “I’m willing to give it back to my price” take fucking profit.
Red Flag # 4 - “I win in everything else” cool bro, no one cares, leave your varsity jacket at home because you’re not even the waterboy in this game.
Ahh this is the lesson that the cocky penny stock picker does not learn until it's too late. We have all heard the penny stock trader brag about his tight risk trade, yet stops don't work. When their dropping 40% day after day and there is no one looking to buy the shit they are trying to sell, they learn the lesson of liquidity.
Avoid chaotic stocks, trade liquid ones
Think of an auctioneer trying to sell a painting in a room that’s empty. When there are no buyers, it's worthless. We could throw around 1,000 shares in the names we trade with ease because there's actually a market for them. Even when shit hits the fan, you can get out. In penny stocks that old thing called liquidity is a dish served cold.
Take about the difference of a few days make. Had Mr $80k DM’d us just two days earlier, we could have gotten him out of that piece of shit for a papercut. However this was a lesson that he had to learn the hard way and for now he is completely done with penny stocks.
The loser in the first story is still in fact a loser, I followed up with him which is now a year later and the guys still a bum and salty about pissing away $250k losing in penny stocks. Mr $80k took the prison style ass kicking like a man and after closing out all his shit positions we could hear the calmness in his voice. He is now free from the dog shit. Now granted he wanted to go right back to making that $80,000 back which is Red Flag #5.
After a huge psychological loss like that, time heals the wound, had he gone back into this game with no skills and a bleeding account, he would be wiped out clean. He is now under our watch and all of his money is in cash, he is not allowed to invest a fucking dollar until we say so. He needs time to learn the simple shit and to build back his confidence. A loser wants to make back a loss. A trader takes it as a lesson and focuses on the bigger picture. For Rob Learn our goal is to get him to $500,000+ by the end of 2018, getting back to even is sucker play.