Tax Loss Candidate
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Tax Loss Candidate

John F. Carter 12/30/2013

We're going to look at Twitter, because TWTR has had a horrendous volatile couple of days here. Huge volume on the spike day and then today, on Friday, down 13 percent. So look at this entry today a little bit. So I had longs from here on this pull back. Had longs here and then just kind of trailing a stop. You know doing this -- when you get a run like this you just kind of trail the stop behind the previous day's lows.

So this morning we kind of gapped right into those lows and it was just like a flurry of activity, just like stop, stop, stop, stop, stop, stop, stop, stop, stop. And I actually spent most of the day looking for -- like OK, I want to get back in to this. Let's see if this thing's going to go. So then the question becomes, well how to try to time that -- if you can.

Of course, today we had a downgrade. And that usually is always kind of a nice thing. So you can see on this today, and you know, I'd been trading, I hate stop outs like this too. You gap down, you're kind of trading sideways. And what I do on stuff like this, is I'll give it a few minutes and let it set its range, and it's like OK, here's its opening range after the first hour or so and then just place stops below there. And then once you get through that you're done.

I had a nice profit on the stock that I bought at $57.00. I lost some money on the options that I'd added to it. Some I'd added earlier, a little bit more that I added yesterday. And ultimately the options kind of washed themselves out. So I was hoping for on something like this that we'd get a little bit more momentum on a short squeeze and pop us up to 76.77 but obviously that's not the case. And part of the -- I guess you would say suspense in trading stocks is that you get these upgrades and downgrades. So at this point there's no reason to be in this stock long, OK. I'm going to watch it again and see if there's another entry point.

You know it's just kind of the way the market works sometimes. I mean sometimes you kind of have these crazy moods, you always want to have a plan. That was the plan, followed it. It was funny, getting stopped out it was like, ah man you know I bet this thing's going to rally right back up. And it just never did, and on a five minute chart you know if you just keep a trailing like a 21 period moving average here -- and you know I always talk about two daily closes above the 21 is a buy signal -- well it's the same thing when you get some kind of run away like this. And at something like this I was looking to see if we get two closes above the 21 and I was just going to get back into it. And we just never could. And then it just got obliterated in the close. So that was kind of un-fun today. Friday would have been kind of fun to pop off Twitter with some profits. But you know that's the trading life.

Now on the upside I want to give you some examples of the end of the year plays that we'll be doing -- this one, WPCS and this one had met the criteria when it spiked down yesterday. So I've just kind of picked some up as an example for the class and you can see today we popped back higher. So this is one where I started nibbling on it and I was planning to take a full position on Tuesday during the class. And this one doesn't have options so I had to buy the stock. And you can see today it was up a $1.02. So I got in at a $1.82 and it just popped up pretty good in one day. And that's the kind of stocks and situations that I'm talking about. And this one was -- this is unusual -- this actually happened before the end of the year.

These are the kind of situations that I'll be looking for. Some of these stocks do have options and some of them just are the stock itself. If you are interested in joining me on this class these are the kind of things we're going to find. It's kind of the quick hit. Typically these trades can last one day to a couple of weeks. But the idea with this is we're going to learn the low risk high reward tax loss selling strategy, how to time the trades for the best entry, the psychological factors behind tax loss selling. OK.

There's a couple of really good candidates that have been setting up. I'm actually looking at about a dozen candidates. I'm going to have to explain why these candidates, and then you know when to time the entry because that's actually pretty critical too. Money management tricks and techniques, you know the criteria that make a potential tax loss selling stock.

Once I teach you this then you can do it year after year after year. I've done it for ten years, I've made money every time doing it. How to scan for the stocks that meet the criteria and of course this will be turned into a DVD as well.

The class, we're going to post it on the site at $497.00. if you are seeing this you can sign up for $297.00. OK. This class is going to be east coast time on Monday the 30th at the end of the day at from 2 to 4 east coast time, which is 1 to 3 central, and then on the 31st we'll have two sessions. The first one from 9:30 to 11:30, we'll scan these things real time and set up our watch list, and then from 2 to 4 east coast time, again 1 to 3 central, where we'll actually be buying the bulk of our positions. And then the idea, of course, is Wednesday, January 1st the market is closed but then we can start flipping these out on Thursday and Friday and some of them we're going to hold on to for a couple of weeks and I'll show you how to determine all of that.

So again, I've done this every year for ten years, it works every time. It's a very unique -- very unique pulling the markets where essentially you get to play the market maker. And as you guys know market makers always make money. So looking forward to seeing you guys there. Have a great weekend and we'll see you at the next update.