by Gavin M.
The next victim of my painful shorting is JC Penney. Albeit this was more fun whe it was at $11 or so but I think a bottom will form in the coming weeks. I wish to highlight the peak stupidity of the people out there. Yes, I'm heartless. Yes I'm a douche bag. Deal with it. I'm not here to sugarcoat things for you.
If you've been buying JCP below $10 expecting a quick rebound to $12 you really need to get your head checked. I mean that in a kindest of ways. It has been manipulated so many times by big institutions dumping that the poor traders and investors are getting creamed.
Take for example one casualty today. This person said they made $5,000 buying the bounce from 8.60 to 9. Cool, that's fine. But for that person to be stupid enough to allow all of that gain to be wiped out by doubling down on JCP, is just shtooopid. If you made $5,000 and you wanted to make more, as soon as you are down by 20% (ie $1000), you should've called it quits and be happy with your net $4,000 profits. It's really that simple.
The problem with traders is not how they trade. It's how to keep staying green. You can make a million dollars in a day, but what good is it if you're going to lose $900,000 the next day???? You must know when to say enough is enough. Think about that, it might just save you.
Traders from Equity Sense will be writing on this blog on positions and other market-related things.