A little humor for the Blog haters or just the stock flippers.
Without going into too much detail, I personally got a good chuckle over JS's posted trading record as of late.
If I got this straight, he used to own 75,000 shares purchased somewhere around .30. He panicked and sold all around .63. Good for him, he banked a profit. Nothing wrong with that trade (now pumping and dumping with his blog forum is entirely different and he should go to jail for it....). Now he thinks that ERHE is ready to run again and this time buys 30,000 shares (on margin???? whoah nelly, a OTC:BB volitile speculative stock on margin. That's taking a risk!) for .80. OK, he is forced to sell the next day after a Fed call on his margin, which he does at .88. Yippee, another $2,300 banked short term profits. Today he jumps back in with a purchase of 25,000 shares at .96 and jumps out at .983 for $683 short term gains.
Now again, never complain about a person taking a profit. But in this case, JS used to control 75,000 shares from .30 which would now be worth $73,500 and a paper profit of $51,500 which if held over 1 year would be taxed at 15% Cap Gains rate. JS has exchanged that option for in/out short term gains of $27,733 (24,750 + 2,300 + 683) and no position. Not only has he lost out on the potential for a lower tax bracket, he has lost out on the 75,000 original shares owned for leverage as apposed to what he will likely purchase next at over $1...LOL
This is why I don't day trade or try to time the market. Invest in fundamentals (even in the high risk/ high reward arena). It will pay off!
GLTA,
Strategyone
