After seeing posts on Twitter and Profitly about other traders blowing-up their accounts from holding a short position overnight with $KBIO, this has caused me to establish some hard and fast rules that I will be utilizing in my trades.

1: Never leave a short position unattended - not even to use the bathroom unless I take my laptop with me. If the ticker moves as quickly as $KBIO you need to be able to cut losses quickly.

2: Never hold a short position overnight. The risk of a catalyst in a/h and p/m to drive the ticker in the other direction is too risky - especially when you think you are finished trading for the day and have moved on to the other aspects of your life (church, gym time, work, family, etc).

I want to institute these rules specifically for holding short positions for one simple reason - decreased risk. Unlike a long position, the most you can lose is the total amount you put into your position. Theoretically, if a short goes wrong, your losses could be an infinite amount. However, we know that brokers will margin call these positions when they want to - not when it is hopefully best for you and I. When the broker margin calls that position, nobody wants to be stuck owing the broker thousands, tens of thousands or even more.

On another hand, I'm glad that I haven't been trading this week while I've been transferring some funds around so I can work around the PDT rule. This was a good week to accomplish that as I have been in extra work meetings during trading hours. I'm not even able to speculate whether or not I would've had a position in $KBIO. But I'm glad I was protected from potentially going tens of thousands of dollars in debt to a broker.

I would encourage anybody that reads this post to be encouraging and uplifting to those that are transparent with huge losses and to take time to evaluate their trade and incorporate lessons in with your own trading practices.