Irrationally mad decision making to obtain the American Dream.

I am triumph! I am a king on valentines day! My first real adult disciplined trade.

Okay so I’m up $45,000 so far in my WTVI trade and the candlesticks are extremely large hitting BB’s and for the past couple of days its been straight upward movement. I’m expecting some type of pullback but I could be wrong. I thought to myself it doesn’t matter if I’m wrong and the stock would of made me a millionaire or if the stock drops to nothing and I regret not selling. So I thought to myself what is $45,000 worth to me? Well the biggest thing that came to my mind is that its one years worth of full-time income at my current rank in the USCG. With that said I immediately got out a dice and said “if it rolls even I’m holding it and if it rolls odd then I’m selling it”. It rolled a five and odd number. I was asking God subconsciously what should I do even though I knew I should sell it. I thought this is the first time I would put greed aside and conquer victory early instead of at the last minute. I feel like I’ve grown up and gone on to second grade with this trade. I ended up selling WTVI at $.047 and made +$38k within the 6 business days I held it. I feel great. I’m not going to regret if the the stock moves higher and higher. $38k to me is a years worth of income, can pay off my car, half of my last mortgage, or use it for a better opportunity down the road. I believe WTVI traded a bit lower, but I don’t even care. To tell you the truth I don’t even want to look up the stock symbol for at least a week so it won’t get to me.

I was actually down -$3200 bucks in an AAPL option trade gone bad which will all expire today worthless. I was told Feb through May are the hardest months to trade and its true. I think what I’m best at is technical analysis, but even that doesn’t work well during these choppy times. Since this trade worked out and I didn’t get over greedy on this 900% + trade I survive another day in the traders world. My account has reached close to my May 07′ goal of $48,000 on my way to $1 million.
I’m not worried about $1 million anymore. I feel so good about just getting out of this trade and paying off my new car possibly in less than 6 months of buying it for $24,000. That my friend is power. I’m putting aside around $10,000 just for taxes and I plan to leave only $2000 in my account to start trading again instead of a higher number just so I dont’ get greedy and buy really big positions that will make me lose quicker.

I feel triumph, victorious, the king of valentines day, and I feel I finally made a real good trade because I was very right about the charts, right buy in price, company hype and selling before actual news comes out, and most of all not being greedy and selling out early.

cheers to me!

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15 responses

  1. Scott

    Wow, man you really should have held on… I would have… and did. All gloating aside, I think you have the right mindset to be a good investor. It takes more balls to pull out when you are happy with your earnings than to hold on to a rocket that might run out of fuel. You should be very happy today… Congrats and good luck in the future.

    February 14, 2007 at 10:18 pm

  2. Congratulations. I probably would have sold half and see what happens in the next day or so. Good to forget about the million dollars and just focus on the trade at hand. Probably wouldn’t go back down to $2000 in the account either. But you know what you are doing.

    February 14, 2007 at 11:59 pm

  3. Jordan

    Congrats

    February 15, 2007 at 4:25 am

  4. Thanks for all the congrats. I have to admit with Moom after I sold I wish I would of left 100,000 shares left in it to keep riding profits up until Feb 19. I also know what goes straight up must also come down. I didn’t have anymore money to repurchase some shares to let the profit rise since I have to wait now for the funds to clear in my account to trade again. I’m not worried. The money I did make will pay off my new car, goto savings, and pay for capital gains taxes. Anyone have any good sites on finding the exact mount I will have to pay to taxes?

    February 15, 2007 at 9:45 am

  5. Mike

    Congrats on your recent success, but I must say
    that it smells of the early stages of gambler’s
    ruin. If you need clarification on this topic
    I would definitely recommend you spend some of
    those winnings on a book called Fortune’s Formula
    which details the situation I see unfolding in
    your trading life right now. By pulling out
    the bulk of your winnings you have helped improve
    the odds of future success for yourself. Also
    just to give yourself a little more credibility
    it is spelled losing not loosing just a pet peeve
    with your entries. Congrats again.

    February 15, 2007 at 5:40 pm

  6. Hey Mike.

    Thanks for the grammar correction because I probably spell that word wrong many times.
    I know I did do something write by getting out once I was satisfied and I also knew if I didn’t get out I’d get too greedy. I’ll correct that error right now. I feel better actually seeing the price of WTVI drop to $.028 and currently below what I sold for it yesterday. I have to fight the greed. I think it will be a good stock if after Feb 19 it shows some changes more geared to a social networking site like free everything and user personal pages. Write now the content sucks, the company hasn’t made any money, and I haven’t seen one statistic that shows how many members are signing up to use the service. I guess I’ll see and be patient for I leave my money in something I can’t say “why” its worth even a penny.

    Thanks for the comment. -FN

    February 15, 2007 at 9:31 pm

  7. Congratulations on your success. But your bragging implies that those of us who are holding are suckers. It is better to say you didn’t have the stomach or patience to hold. Success in penny stock trading is more patience than anything else.

    February 15, 2007 at 9:53 pm

  8. Newmillionaire(barutiwadaily.com),

    Thanks for telling me I’m bragging for selling the stock because it’s something I really never get the chance to do and I’m proud of my trade. In my book you are a sucker just for trying to make me feel guilty about making a smart move and wanting live another day as a trader. I laugh at your comment of patience with penny stocks. What is there to be patient about? I bought it for a quick profit. If it makes your account goto $1 million bucks awesome! As for me I’m happy with my smaller profit and selling out when I knew I only bought for a short ride. Now, if Wi-fitv.com was already generating revenue and I really liked the site and how it presented itself then hey I’d be a long term holder. When I saw the price close below what I sold it for I was even more pleased with my decision today (2/15). Like one of the comments above from probably a more professional trader “I showed some balls to sell with a profit I was happy with”, in no way did I brag about it. I’m just psyched about how fortunate I am to find the company, buy it, and sell it to improve my financial status. From my experience when something like WTVI is doing too well it bursts and you become a sucker for not selling when you were up up up. I don’t always make good trading deicions, but I wanted this to be my first since it was also going to be one my hardest wanting to be like you and just hold it and gamble more with my profits. However, I chose to be like the professional and sell to move on and trade another day even if it would make me a millionaire. The question in my head is: “What if I’m wrong about the stock?”. Think about that. Well good luck to you and I hope you do sell if you make a milion because you’d be very unwise not to.

    February 16, 2007 at 12:41 pm

  9. Your capital gains tax will be whatever your marginal income tax rates are federally and in Hawaii. Probably 25%+ the relevant Hawaiian rate. So assume 1/3. But this could push you into the 28% bracket? Anyway it’s all pretty close.

    February 18, 2007 at 3:19 pm

  10. If you stay in the 15% bracket yes you’ll be under 25% in tax even in Hawaii but you’ll be moving into 25, 28% bands. Corporations aren’t any use for this purpose. They can have a purpose for professional traders in allowing deduction of health insurance for example, but it won’t change this basic tax rate.

    There are three ways to lower the rate on short term trading:

    1. Move to a zero income tax state: Alaska, Washington, Nevada, Wyoming, Texas, Florida, Tennessee, and New Hampshire (the latter two have no taxes on capital gains. If you renounced US citizenship and moved to some place like Panama or Nicaragua you could avoid paying tax on trading altogether (same for HK but harder to immigrate there :)).

    2. Trading futures instead of stocks lowers the Federal Rate. 60% of the gain in futures is treated as a long-term capital gain.

    3. Do the trade in a retirement account of some sort. Can’t use margin in these but can use options etc. Trouble is the money is stuck in there and subject to penalties for early withdrawal, but there are exceptions and different schemes to get it out early….

    February 19, 2007 at 3:41 pm

  11. stockinup

    I want to learn from you, because I had a
    buy order in on WTVI at .0037 on 2/8, then
    canceled it and bought GMSC instead, over 1m
    shares on both companies. I had to witness
    WTVI skyrocket and GMSC fall slightly just after buying it. GMSC still has great potential with excellent
    news out now, so I am holding. But gosh,
    woulda shoulda coulda on WTVI. Will see where
    it drops to for a better play.

    February 22, 2007 at 5:53 pm

  12. stockinup,

    The stock didn’t sky rocket. It went to almost $.08 cents before dropping to a more normal level of support around $.02 cents. To me skyrocketing is like $1-2 dollars.

    February 23, 2007 at 11:03 pm

  13. during valentines day, i always give my girlfriend a very warm hug that she enjoys *,-

    December 3, 2010 at 4:15 pm

    • you sound like a great boyfriend. keep it up.

      January 3, 2011 at 12:55 pm

  14. :~, I am very thankful to this topic because it really gives up to date information :”.

    January 24, 2011 at 7:31 pm

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