8/17AM: So I woke up this morning, and going through all the stocks in my watchlist to see what they are doing pre-market. Notice FENG going red. This stock is on my watchlist for a potential short. Even though this is an earnings winner, it has major resistance in the low to mid 4's, and it's going red pre-market. I took a 600 share short postition from 3.91.

 

Market opens and it holds red on the day. Starts to come down pretty quick to 3.80, before bouncing to 3.88. Then comes back to 3.75, and bounces again to 3.83. Then it's in the high 3.70's, and Tim Sykes throws out an alart that he bought 3K shares at 3.80. The stock went to 3.89, and I decided to cut my trade, before all the TimAlerts subscribers follow his alert and chase it up. It pretty quickly dropped back to the 3.70's, and eventually to my target area in the 3.60's. 

Ugh, I'm pretty frustrated to have cut that trade, because it did EXACTLY what I anticipated. This stock hasn't had any multiple green days in a row for at least 2 years. It's not a runner, so I don't really see why Tim bought it. I think this is what Tim means when he says "it's more like an art, it's not science". This is starting to make a lot more sense to me now.

 

At the same time DCTH, the play I was going to hold overnight, but scared me out on it's panic yesterday, is now in the .17's as I'm typing this. Could have made an easy $100 there. But then I wouldn't have been able to short FENG, since I was using overnight margin. 

 

Even though I didn't gain or loose anything, I learned something big here today. The main lesson is, stick to your strategy. Tim Sykes is not right 100% of the times. This time, he was wrong, but he cut his losses quickly and moved on. That's what I need to do more, and so even though I'm a bit bitter, because the stock did exactly what I wanted. I am still happy with the way things went. I feel like I've learned so much since I joined the challenge!