Worst Trades of All Time: Part 3

Oct 24, 2014   //   by Profitly   //   Profitly  //  No Comments

Last but certainly not least, here are four final additions to the infamous “worst trades of all time” series, courtesy of Business Insider.

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Andy Fastow: Enron’s CFO Cooks The Books, Funnels Money, And Cheats His Way To Riches

Most of you will know the story of Enron, a company that went bankrupt in 2001 and was accused of accounting fraud. The downfall of Enron will forever be known as one of the greatest crimes (and tricks) in modern finance. As Enron’s Chief Financial Officer, Fastow was responsible for unloading balance sheet debt into special investment vehicles, including the famous JLM and Raptor vehicles. He also set up off shore entities, directed traders on how they should make money, and lied to investors all in the name of Enron.

When the government went after Enron, he was able to cop a plea agreement that required him to serve a maximum 10-year prison sentence and forfeit $23.8 million in assets. He got six years and is awaiting release in 2011. His losses? Billions of dollars, wiping out shareholders completely, and costing thousands their jobs.

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Peter Young: 80,000 investors get cheated

Young was a fund manager at Deutsche Morgan Grenfell (DMG) and had access to quite a bit of capital. He was known for making big, speculative bets in European markets. He set up shell companies so that he could circumvent financial regulation and place big bets on specific companies. After these bets, regulators came looking for answers and trading was shut down temporarily. Parent company Deutsche Bank was forced to offer DMG a $300 million cash infusion, only to have $400 million withdrawn from its funds in the ensuing weeks.

DMG was forced to pay a $1 million fine and investors profits were cut short after the bank announced to 80,000 investors that money was lost due to trading irregularities. Together, the three European funds Young managed were worth a combined $2.5 billion.

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Bernard Madoff: The greatest Ponzi scheme of all time

You definitely know this story by now, so let’s just give a brief review:

He’s the former head of NASDAQ starts up Madoff Securities in mid-1980s.

For years he showed investors great returns, told them to keep their money in the fund.

Turned out he didn’t have anywhere near as much money in the fund as he claimed he did, bilked investors out of billions when it was discovered he was running a Ponzi scheme.

Goes to jail for the rest of his life, assets and cash divested to claimants in case.

New York Post has a field day with its headlines. “Bye Bye Bernie”

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David Lee: An explosive natural gas play

Lee, a natural gas trader for Bank of Montreal, ended up losing his bank $237 million due to his trading in natgas derivatives. He originally lost up to $853 million using a scheme to disguise his losses – a recurring theme in our presentation.

According to Reuters, it went down like this:

“Lee overvalued the positions on BMO’s books by regularly recording inflated values that were then purportedly validated by Optionable Inc,” the SEC suit said.

It said the three Optionable traders “schemed with Lee to have Optionable simply rubber-stamp whatever inflated values Lee recorded.”

Weekly Roundup October 13-17

Oct 22, 2014   //   by Profitly   //   Profitly, Profitly Weekly  //  No Comments

This was one of the most volatile weeks in recent memory for the stock market, leading our gurus to have plenty of opportunities for big profits!

We’ll start with Tim:

$5,008 profit on MEDL; Long Stock by Timothy Sykes.

Entry comments: Rebuying this pick on a big 50% dip since my last buy, CEO letter today teases new announcement with Facebook http://tim.ly/1rGbzYb anything to do with a new Facebook video platform could be HUGE for this tiny $8 million company, not much risk given this tease should inspire buyers all the way up to the announcement, goal is to sell for 30-50-70% gins, depending on how this news plays out. Exit comments: Sold into this spike caused by news of their mobile development firm getting acquired so now they’re a part of a much bigger company and can focus purely on their mobile video social network…I like that, but this newly bearish market and this company’s inability to announce their Facebook deal for far too many months means I have to reduce risk here, will ONLY re-buy once we get confirmed Facebook news and/or better news about their mobile video network.

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$3,464 profit on LAKE; Short Stock by Timothy Sykes.

Entry comments: Looks to be blow off top day, goal is to make $1-2/share. Exit comments: Wow that was quick and easy, amazing how fast these collapse when they’re ready to go, MANY brokers have shares to short today.

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$5,231 profit on APT; Short Stock by Timothy Sykes.

Entry comments: Shorting some overnight, goal is to cover in the 7s before the market close, afterhours or tomorrow. Exit comments: Ha best trade of the day for me and I’m so pissed I missed $2/share on APT from before…but can’t think about missed opportunities, now up $10k+ today getting better.

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$3,450 profit on APT; Short Stock by Timothy Sykes.

Entry comments: Got a crack in the short squeeze, should be first sign this spike will fail, goal is to make 30-50 cents/share once it takes out day low. Exit comments: Got a crack of the day low to 8.30 but not much more than that, will revisit the short later this afternoon, probly still too early, could still squeeze.

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$3,185 loss on IBIO; Short Stock by Timothy Sykes.

Entry comments: Up a ton in 2 days, shorted due to just now breaking Seeking Alpha expose http://tim.ly/1z4c5bj not the Ebola play, goal is to make 20-40 cents/share. Exit comments: Covered remainder, not cracking big, minimized loss, but got too excited, GREAT video lesson coming.

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$6,540 loss on SIMH; Short Stock by Timothy Sykes.

Entry comments: New Ebola play is up from 2 cents/share, in a few days goal is to make 15-30% drop this week, keeping position small, will add to short on spikes probly but scary price action. Exit comments: Went big, going against me, can’t risk bigger spike, rule #1.

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Next is Superman:

$49,249 profit on VSR; Long Stock by Super Trades.

Entry comments: TRADE/SWING new page on website devoted to ebola products and more than suits – http://www.versarpps.com/about/news/prepare-protect-prevent-against-ebola-virus personal stop loss low 4’s and personal target 5-10 plus if it catches on like LAKE. Exit comments: SUPER TRADE will revisit if more ebola news.

 

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$14,250 profit on AHPI; Long Stock by Super Trades.

Entry comments: TRADE / SWING respiratory products.. u of MN said he alt workers need respiratory masks if so this may be go to ///personal stop low 2’s and personal target 3-5 plus IF it gets picked up. Exit comments: SUPER TRADE will revisit if more ebola news.

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$2,200 loss on NVAX; Long Stock by Super Trades.

Entry comments: TRADE – vaccine maker WILL SELL IF GOES AGAINST ME 5.35-5.50 plus personal target if works. Exit comments: no gap – ebola stocks seem like so yesterday as of right now haha.

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Check out some of our most recent roundups here:

June 30-July 3

July 7-July 11

July 14-July18

August 4-August 8

August 11-August 15

August 18-August 22

August 25-August 29

September 2-September 5

September 8-September 12

September 15-September 19

September 22-September 26

September 29-October 3

October 6-October 10

 

Weekly Roundup October 6-10

Oct 16, 2014   //   by Profitly   //   Profitly, Profitly Weekly  //  Comments Off

From Ebola to fears over global growth, it was a volatile week in the stock market and our gurus were ready to profit!

$2,208 profit on PSID; Long Stock by Super_trades.

probably sold too soon – these stocks are not my favorite.

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$2,700 profit on OBCI; Long Stock by Super_trades.

Entry comments: TRADE on LAKE and APT momentum ….personal stop loss low 4’s and personal target 5 plus if it works. Exit comments: may go higher but perfectly executed watch list trade off LAKE and APT strength ….will watch for re-entry….followed trade plan.

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$19,385 loss on GBSN; Long Stock by Super_trades.

WORST trade in a while – it worked but i NEVER Sell into initial pops from my alerts………should have used tighter stop loss.

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$12,724 profit on VOXX; Long Stock by Timothy Sykes.

Entry comments: Worst timing ever I’m prepping for #PSC7, but this stock is breaking a multi-day basing pattern & has a conference call late next week, probable buying in anticipation of that due to their http://360fly.com subsidiary/possible $GPRO killer/October launch, but as I was researching it for my #PSC7 presentation, I found their http://eyelock.com iris-security investment, natural fit for Apple Pay, writing full report for this weekend, goal is 50-75 cents/share, already have small long term pos…Exit comments: Fading in the wrong direction, holding onto my http://tim.ly/timlong position.

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$6,498 profit on VOIL; Short Stock by Timothy Sykes.

Entry comments: Re-shorted on seemingly double top in low $2s, now testing support at 1.85-1.90, Mr. http://tim.ly/gregmill is short too as is http://tim.ly/jewmark just took out day lows, very good for shorts, goal is to make 20-40 cents/share, IB had shares to short earlier now I’m using my high net worth broker. Exit comments: Got some nice fading but no true panic yet, fading more as I type but I can’t risk it on this stock, I have meetings all day due to http://tim.ly/timlong new videos, solid profits though, congrats to http://tim.ly/gregmill & http://tim.ly/jewmark on their shorts too

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$4,195 loss on LAKE; Short Stock by Timothy Sykes

Entry comments: Fading, looks to be going red, goal is to make 50 cents – $1/share as panic sets in. Exit comments: Terrible trade, thought it’d go red, fell into classic trap of anticipating in order to give better alert, I need to have patience, these will all pop eventually, but luring in amateur shorts like this is just pathetic.

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$6,540  loss on SIMH; Short Stock by Timothy Sykes

Entry comments: New Ebola play is up from 2 cents/share, in a few days goal is to make 15-30% drop this week, keeping position small, will add to short on spikes probably but scary price action.

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Check out some of our most recent roundups here:

June 30-July 3

July 7-July 11

July 14-July18

August 4-August 8

August 11-August 15

August 18-August 22

August 25-August 29

September 2-September 5

September 8-September 12

September 15-September 19

September 22-September 26

September 29-October 3

Weekly Roundup September 29-October 3

Oct 9, 2014   //   by Profitly   //   Profitly, Profitly Weekly  //  Comments Off

Time for the roundup of our guru’s biggest trades on Profit.ly! This week we definitely need to start off with Super Man again. It’s safe to say he had yet another amazing week!

$26,448 profit on SPY. Long Option by super_trades

Entry comments: just a hedge. Exit comments: SUPER TRADE will re-visit based on market.

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$23,904 profit on SPY. Long Option by super_trades

Entry comments: just a hedge. Exit comments: SUPER TRADE will re-visit based on market.

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$4,960 loss on CYBR. Long Stock by super_trades

Entry comments: small starter position on pullback…. 4ema personal stop loss and personal target 32-35 plus if it works….may add or sell if it goes against me depending on 4ema and overall market. Exit comments: stopped for loss.

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$3,746 profit on CNET. Long Stock by timothy sykes

Entry comments: Buying the dip into the market close, it’s been fading but holding being unchanged/multi-day support right here so far, the fact that it spikes/gaps up 30-90 cents/share every day limit my risk, all I want to do is make 20-40 cents/share afterhours/premarket or morning spike tomorrow, hopefully fun for my live http://tim.ly/sykesmc webinar tomorrow 9-11am EST! Exit comments: Now spiking to 3.38 afterhours so I played it too safe, but I gotta take the easy profit with no overnight risk, sold some right into the market close, some afterhours (partial executions still have a problem with our software, we’re working on it, but this is why I report my sells all at once to reduce bugs right now)…PERFECT example of dip buying a volatile stock near support that refuses to go red on the day and then watching it squeeze into the market close.

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$2,257 profit on MVIS. Long Stock by timothy sykes

Entry comments: New Apple patent here about holographic displays http://tim.ly/1v0DyEB outlines MVIS’s product, stock should run on rumors of upcoming deal/AAPL product alone, right market environment now for such speculation, limited risk, stock is only up 15 cents/share right now on this blog post, let’s see if this can pull a NETE, OTIV, RADA, NXTD type move, all I want is 30-50 cents/share of upside, careful though as this stock never holds its spikes, already hit 2.08 today so I’m dip buying here. Exit comments: Got a little spike and a Seeking Alpha story mention, but now a double top at 2.14, most newsletters/chatrooms just ignoring this since its spike/volume isn’t big enough to really run and it never holds its gains, wall of sellers coming in, no thanks, worth a shot but this is basically a scratch, gotta play safely when wrong.

1 2

$4,182 loss on VOIL. Short Stock by timothy sykes

Entry comments: Shorting this crack via my high net worth broker, a little late, but this could still crash 30-50% today/tomorrow. Exit comments: Not cracking, not sure if it’s the OTC data issue or it really is the promoter holding it up yet again, can’t take the risk as I’m traveling tomorrow for the conference, not going to be able to watch it like a hawk, disappointing but trade safely as my new Huffing Ton Post article says http://www.huffingtonpost.com/timothy-sykes/5-millionaire-traders-on-_b_5907208.html

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Check out some of our most recent roundups here:

June 9-June 13

June 16-June 20

June 23-June 27

June 30-July 3

July 7-July 11

July 14-July18

August 4-August 8

August 11-August 15

August 18-August 22

August 25-August 29

September 2-September 5

September 8-September 12

September 15-September 19

September 22-September 26

Worst Trades of All Time: Part 2

Oct 7, 2014   //   by Profitly   //   Profitly  //  Comments Off

We already gave you four of the worst trades of all time, so let’s continue on our journey and add four more to the list, courtesy of Business Insider. These guys really could learn a thing or two from our gurus.

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John Rusnak: Lost $691 million and thousands of jobs trading FX

Ouch dude. He definitely didn’t hear about our number one rule. FX is tricky in the first place, so he should have taken the time to learn more and taken a smaller position with less risk. Rusnak was a currency trader at Allfirst Bank who placed bets he couldn’t handle. He was sentenced to 7.5 years in prison for bank fraud and lost Allfirst a total of $691 million. As a result, Allfirst was sold by parent company AIB Group to M&T Bank. Over 1000 employees lost their jobs as a result of the case.

joseph-jett-the-hacker-who-lost-it-all

Joseph Jett: The hacker who lost it all

This guy looks like he knows he should have signed up for our trading alerts. Sheesh. After GE purchased investment firm Kidder Peabody, it ended up finding out the company was more trouble than it was worth. Joe Jett, an MIT and Harvard Business School graduate, worked for Kidder in its fixed income department. He exploited a weak computer system to emulate trades to appear as if he was making sums of money. He appeared to have made $264 million when in reality, he had $75 million in losses that he covered up.

After becoming a rising star in the company, he was fired for reportedly causing over $250 million in losses according to then-GE CEO Jack Welch. As a result, the SEC charged him with record-keeping violations and ordered him to forfeit $8.2 million in bonus pay in addition to a $200,000 fine.

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John Meriwether: The hedge fund that almost blew up the entire global economy.

That’s right, the entire global economy was at risk because of this guy. This story is one that’s appeared in many a book about finance. It goes something like this:

Back in 1998, John Meriwether’s hedge fund, Long-Term Capital Management, had levered up 100:1 on Russian bonds. Russia defaulted and as a result, the fund lost $4.8 billion in a matter of months. A consortium of Wall Street banks was brought together by the New York Fed in order to bail out the hedge fund and save the economy. Firms like Goldman Sachs and Credit Suisse were all forced to post hundreds of millions of dollars to keep the firm afloat. Over $1.9 billion in principal was completely wiped out, making Meriwether the laughing stock of The Street.

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Yasuo Hamanaka: Attempted to corner the copper market and lost

Commodities is another volatile market, so he should have exercised more caution. This Japanese copper trader used to be employed by the Sumitomo Corporation, which was one of the larger trading firms in Japan. Back in 1996, Mr. Hamanaka attempted to corner the copper market and was unsuccessful. At stake? $1.8 billion in authorized trading with losses as high as $2.6 billion. He was sentenced to eight years in prison and was released in 2005.

 

Weekly Roundup September 22-26

Oct 2, 2014   //   by Profitly   //   Profitly, Profitly Weekly  //  Comments Off

It’t that time of the week again–here’s another roundup of our guru’s biggest trades on Profit.ly! This week we definitely need to start off with Super Man. It’s safe to say he had an amazing week!

$33,813 profit on SPY. Long Option by super_trades.

Entry comments: just a hedge. Exit comments: SUPER TRADE will re-visit based on market

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$38,533 profit on SPY. Long Option by super_trades.

Entry comments: just a hedge. Exit comments: SUPER TRADE will re-visit based on market

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$12,187 profit on MSON. Long Stock by super_trades.

Entry comments: SWING starter…wanted at 9.5…low 9’s personal stop and 11-15 personal target if it works…. Exit comments: SUPER TRADE will revisit based on chart

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$7,403 profit on CADC. Long Stock by super_trades.

Entry comments: DO NOT CHASE MICRO FLOAT – SWING / TRADE bad loss but huge guidance for next year, tiny float history of runs and going into anti-pollution concrete also personal stop low 4’s and personal target 5.5-8 plus if it works Exit comments: may still work but tough market for these right now.

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$6,810 profit on CADC. Long Stock by super_trades.

Entry comments: DO NOT CHASE MICRO FLOAT – SWING / TRADE bad loss but huge guidance for next year, tiny float history of runs and going into anti-pollution concrete also personal stop low 4’s and personal target 5.5-8 plus if it works Exit comments: may still work but tough market for these right now.

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$8,912 profit CYBR. Long Stock by super_trades.

Entry comments: TRADE for gap .. personal stop loss 28 area and personal target 29-30 plus if it works. Exit comments: $9,000 SUPER TRADE in less than 10 minutes !!! Will do video on why i knew this would work !!!

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$7,850 profit on GWGH. Long Stock by super_trades.

Entry comments: 800k boring IPO bought on float personal stop 12 and personal target 13-15 if move DO NOT CHASEW may move fast.

Exit comments: may go higher , may revisit but nice 7k trade

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($7,573) loss on OBCI. Long Stock by super_trades

Entry comments: small position TRADE as chasing a bit (bad example) personal stop loss 4’s and personal target 5-6 plus if works …mention that their disinfectant can be used for ebola Exit comments: stopped out for loss.

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 ($2,989) loss on GAI. Long Stock by super_trades.

Entry comments: TRADE / SWING nice sales gain and near breakeven float under 1mm and history of runs DO NOT CHASE p erosional stop loss low 5’s and personal target 6-10 plus if it runs Exit comments: It worked right away after educational buy alert but i never sell into alert spikes especially on low floats….will keep on watch….was just bad market day for this i think.

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 ($3,456) loss on MSON. Long Stock by super_trades.

small loss stopped on adds

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Then we have Investors Live!!

$2,119 profit on CYBR. Short Stock by Investors Live.

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$1,572 profit on YHOO. Long Stock by Investors Live.

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$1,756 profit on CNET. Short Stock by Investors Live.

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$2,964 profit on RITT. Short Stock by InvestorsLive.

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$8,557 profit on GPRO. Short Stock by Investors Live.

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($2,273) loss on GPRO. Short Stock by Investors Live.

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($2,095) loss on RPRX. Long Stock by Investors Live.

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Last but certainly not least we have Tim!

$3,084 profit on NXTD. Short Stock by Timothy Sykes.

Entry comments: Shorted morning spike on this junk, goal is to make 20-40 cent/share. Exit comments: Nailed another nice $3,000ish profit, playing it nice and safe, not going for too much on these volatile plays in the morning.

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$4,040 profit on NXTD. Short Stock by Timothy Sykes.

Entry comments: Voulme slowing, sellers becoming entrenched, just went easy to borrow at my high net worth broker, goal is to make 20-40 cents/share. Exit comments: Nice $5,000ish profit for me, wanted bigger drop but still early on this one, I’ll be more aggressive later today/tomorrow.

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$3,756 profit on SINO. Long Stock by Timothy Sykes.

Entry comments: Dip buying after multi-day drop and dip off intraday highs too, alerted by this great trader http://bit.ly/gregmill who normally shorts, nice pattern, low risk, goal is to make 20-40 cents/share. Exit comments: NAILED IT, plenty of time to buy congrats to all longs, hit my goal.

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$3,045 profit on VOXX. Long Stock by Timothy Sykes.

Entry comments: Bought this in anticipation of their new product http://360fly.com which is a Go Pro killer, (and see how hot GoPRO stock is) awesome new camera technology launching in November, as more people find out about this it should rise into the launch, see awesome video http://tim.ly/1spBrNV risky since its still a few weeks away but I’m buying on a near $2/share dip the past 2 days probably due to overall market selloff, also bought some longer term, short-term I wanna make 50 cents. Exit comments: Taking puny profits as it fails to make new day highs & now volume fading mid-day, expected more of a bounce, but bounce plays are tougher as I took profits too soon on SINO too…holding onto to a small http://tim.ly/timlong position here though, I’ll do video lesson explaining the risk/reward of this trade, probly gonna be better bouncer closer to 360fly launch last week of October.

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$3,155 profit on NXTD. Long Stock by Timothy Sykes.

Entry comments: I hope we got alerts fixed, this is a long not short since its bottoming well, very SINO-like before its big spike, and ISNS at 3.70 before its big spike, CNBC ads start next Monday and this PR http://tim.ly/1Bc9mIP also says social media campaign, they basically teased their own promotion! Goal is to make 20-40 cents/share, risky though so I’ll cut losses quick if it drops before 2.40. Exit comments: Got a nice bounce, pretty much best case scenario for this pattern, but bigtime resistance 2.75-2.80 so I’m not gonna force it on a speculative dip buy, just like SINO, I exited early there too, but I want to teach you safety first, congrats all longs!

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($1,057) loss on CNET. Short Stock by Timothy Sykes.

Entry comments: Finally found some shares to short at my high net worth broker, see http://tim.ly/brokerlist to see all my brokers, goal is to make 30-50 cents/share today or if I hold overnight then 50-75 cents/share, not sure what it’ll do but I’m taking the shares and shorting into afternoon downtrend. Exit comments: Not cracking, spike still on, cutting losses FAST.

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Check out some of our most recent roundups here:

June 9-June 13

June 16-June 20

June 23-June 27

June 30-July 3

July 7-July 11

July 14-July18

August 4-August 8

August 11-August 15

August 18-August 22

August 25-August 29

September 2-September 5

September 8-September 12

September 15-September 19

Worst Trades of All Time: Part 1

Sep 29, 2014   //   by Profitly   //   Features, Profitly  //  Comments Off

We’ve already told you about the worst trades of the financial crisis and we did a series on the best trades of all time. So what about the WORST trades of all time? You’ll see those below, courtesy of Business Insider. Let’s hope these guys learned from their mistakes. They obviously didn’t follow our number one rule of cutting losses quickly.

With every winning trade comes a loss to another party, and today we focus on… the losers.

Here are the individuals and institutions that lost hundreds of millions, to billions, of dollars. All by letting one group or individual gamble with their money.

Be it excessive leverage, poor decision-making, or outright illegal activity, this is a story of epic failure.

robert-citron-the-man-who-brought-california-to-its-knees-with-292-leverage

Robert Citron: The man who brought California to its knees with 292% leverage.

This guy almost killed a state, that’s crazy. In 1994, Robert Citron was Treasurer-Tax Collector and the only Democrat to hold office in Orange County, California. Through a series of highly-levered deals that included repo agreements and floating rate notes, Citron was able to at one point achieve leverage of 292%. The funds he managed were worth around $8 billion and if interest rates went up, he stood to lose big time due to his collateral which consisted almost primarily of US Treasury bonds.

Well guess what? Interest rates rose and as a result, Citron lost Orange County lost a boatload of money. From Wikipedia:

“The county’s finances were not suspect until February 1994. The Federal Reserve Bank began to raise US interest rates, causing many securities in Orange County’s investment pools to fall in value. As a result, dealers were requesting extra margin payments from Orange County. These extra margin payments were funded in part by another bond issue made by Orange County; the size of that bond issue was $600 million. However, this fix proved to be only temporary. In December 1994, Credit Suisse First Boston (CSFB) realized what was going on and blocked the “rolling over” of $1.25 billion in repos (“rollover” essentially means issuing of another repo when the previous one ends, but, at the new prevailing interest rate). At that point Orange County was left with no recourse other than to file for bankruptcy.”

jerome-kerviel-derivatives-arbitrage-totaling-over-60-billion

Jerome Kerviel: Derivatives arbitrage totaling over $60 billion

Kerviel made headlines last year as the trader at “a french bank,” which ended up being Societe Generale, He lost approximately $6.5 billion just like Leeson and others in this list through arbitrage of equity derivatives. Unauthorized trades totaled as high as $66.7 billion. Kerviel was ultimately charged with creating fraudulent documents and making attacks on an automated system.

nick-leeson-wiped-out-the-worlds-oldest-bank-barings

Nick Leeson: Wiped out the world’s oldest bank, Barings

Leeson is most likely the most popular guy on the list. He started his career trading derivatives at Barings Bank and was eventually moved to Singapore where he enjoyed a lavish lifestyle and made plenty of money. That is, because he hid mounting losses in a special account known as the “five eights” account. He was eventually caught and sentenced to five years in a Singaporean prison where he acquired cancer and his wife left him.

tim-geithner-plowed-66-billion-into-a-dead-unpopular-automaker

Tim Geithner: Plowed $6.6 billion into a dead, unpopular automaker

Consider this: when was the last time Chrysler made a car you would actually buy? I’m dead serious. Who buys a new Chrysler, excluding the Jeep brand? Treasury Secretary Tim Geithner must not have thought of this when he wrote Chrysler a check for $6.6 billion to keep the company afloat via a new company.

This isn’t the first time Chrysler has needed help. In 1979, then-President Jimmy Carter approved a $1.5 billion loan package for the automaker called the Chrysler Corporation Loan Guarantee.

Since 2009, Chrysler has yet to fully recover and continues to be a money-losing business. Sure, GM has stolen the headlines recently with so many recalls on their vehicles, but that doesn’t mean Chrysler is out of the woods. Kyle Bass once said that this country needs to consolidate its auto industry. There is no longer room for three major players and perhaps, not even two. Ford will stick around, but it remains to be seen if Chrysler and GM can survive despite their divine intervention.

 

September 15-19

Sep 27, 2014   //   by Profitly   //   Profitly, Profitly Weekly  //  Comments Off

Time for another roundup of our gurus’ best trades of the week!

Let’s start off with a bang; Superman had one trade in particular that really stood out!

$23,400 profit on CNET. Long Stock by super_trades

Entry comments: TRADE – sympathy trade on $BABA personal stop loss low 1’s and personal target 1.60-2 plus if it works. Exit comments: $25k SUPER TRADE – 100% gainer !! video coming….may go higher but will watch and see price action as papa $BABA falling right now.

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$9,525 profit on NETE. Long Stock by super_trades

Entry comments: Pr on AAPlE TRADE personal stop low 3’s and personal target 4 plus if it works. Exit comments: SUPER TRADE!!! May go higher but taking the $10,000 in 10 minutes !!! will watch for re-entry.

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$4,400 profit on GAI. Long Stock by super_trades

Entry comments: TRADE / SWING nice sales gain and near breakeven float under 1mm and history of runs DO NOT CHASE p erosional stop loss low 5’s and personal target 6-10 plus if it runs. Exit comments: It worked right away after educational buy alert but i never sell into alert spikes especially on low floats….will keep on watch….was just bad market day for this i think.

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Next let’s move on to Tim:

$3,522 profit on FONR. Long Stock by timothy sykes

Entry comments: Buying this earnings winner a little early because it runs so fast, risking a bit not waiting for more price action confirmation but if I’m right this can fly 50 cents-$1/share, limited risk buying on a little dip near the market open. Exit comments: Now 12.97 so I played it a bit too safe, but I got my 50 cents/share so I took it, might keep going, but too early to say, for now, nearly hitting my goals so taking predictable/solid profits, congrats guys!

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$1,785 profit on IFON. Long Stock by timothy sykes

Entry comments: Speculative stock, but buying nice 20 cents/share off the day high lessens my risk, will look to sell afterhours/premarket as it should spike just because it’s the play right now and they’re in the right sector, be very careful though since it is so speculative, goal is just to make 15-30 cents/share, 10% should be possible. Exit comments: Can’t stay long this stock, too scary since I know it’s junk, I dip bought and now sold into strength, it’s even higher as I type this 3.20 but could still be double top so I take safe profits with no overnight risk.

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Check out some of our other recent roundups:

June 9-June 13

June 16-June 20

June 23-June 27

June 30-July 3

July 7-July 11

July 14-July18

August 4-August 8

August 11-August 15

August 18-August 22

August 25-August 29

September 2-September 5

September 8-September 12

 

Maintenance

Sep 26, 2014   //   by Profitly   //   Announcements  //  Comments Off

Profitly will be down for maintenance starting at 10:00pm EST tonight on Friday, 9/26.











Worst Investments of the Financial Crisis

Sep 23, 2014   //   by Profitly   //   Market, Profitly  //  Comments Off
Via www.scottonmoney.com

Via www.scottonmoney.com

We are constantly telling our students (and prospective students) that learning from your mistakes is one of the most important factors in becoming a better trader. You’re not going to get every trade right, and you will hardly ever (if ever) time a trade perfectly. None of our gurus are perfect yet they still make hundreds of thousands and sometimes millions of dollars in a given year. How? Because they limit their losses and learn from their mistakes.

So we thought it would be interesting to look back at some of the worst trades during the financial crisis. Below is a list that first appeared on CNBC.

The financial markets are littered with forecasters, most with either an outwardly bullish (optimistic) or bearish (pessimistic) bias. Most of them missed the financial crisis when it hit by being too bullish, and some have been too bearish since, worrying that another systemic collapse is around the corner when in fact equity markets, at least, continue to zoom to new highs.

Indeed, there have been some great calls and some awful ones over the past 25 years. Here are three trades that went bust:

Via www.investmentnews.com

Via www.investmentnews.com

1. “Whitney whiffs on munis.” Truth be told, Whitney was probably always overrated. Even during her heyday in the latter part of the aughts decade, Whitney was ranked 1,205th out of 1,919 equity analysts in 2007 and 919th out of 1,917 in the first half of 2008, according to Fortune. So all the fanfare over her market-calling ability almost seemed destined to end badly. And so it was that in late December 2010, she was featured on CBS’s “60 Minutes” and made the call heard round the fixed-income world: A prediction that 50 to 100 municipal bond defaults would cause “hundreds of billions” in losses that immediately moved markets but ultimately would be proven badly unfounded.

In fairness to Whitney, the muni space has not been without its high-profile defaults, but the situation has not approached her dire forecast. In her mostly overlooked 2013 book, “Fate of the States: The New Geography of American Prosperity,” Whitney only briefly mentioned the muni call, maintaining that the media overhyped her remarks. Despite the high profile she cultivated, Whitney also protested in the book that she didn’t like that her name had “become synonymous with doom and gloom.” Nowadays, her name is mostly synonymous with a very bad bonds call, and her public profile has dimmed significantly.

Via blogs.cornell.edu

Via blogs.cornell.edu

2. “Cohen: Crisis? What Crisis?” Face it, almost everybody on Wall Street missed the financial crisis. But you would be hard-pressed to find a major analyst at a major Wall Street shop caught more unaware than Abby Joseph Cohen, the Goldman Sachs chief strategist who still had her rally cap on well into 2008 as the market imploded. Cohen set an uberbullish 1,675 price target for the S&P 500 for that fateful year, not foreseeing that the world was crumbling before her eyes. The stock market index would close at 903.25, a 37 percent drop and 46 percent below Cohen’s target. That same year, Goldman replaced Cohen with David Kostin and moved her over to a position as “senior investment strategist.” Yet on Wall Street there’s always room for a second act: Cohen maintains a prominent role at Goldman and even was selected to go first at a recent high-profile question-and-answer session with Federal Reserve Chair Janet Yellen.

Via www.garvensmortgagegroup.com

Via www.garvensmortgagegroup.com

3. “Helicopter Ben’s “contained” crisis.” Most accounts of financial-crisis history no doubt will paint then-Federal Reserve Chairman Ben Bernanke as one of the central figures on the Committee to Save the World, as it was nicknamed. But it was also Bernanke’s seeming obliviousness to the dangers of subprime mortgages that helped stoke the debacle in the first place. In a speech given March 28, 2007, before the Joint Economic Committee, the central bank chief showed just how deep the denial ran over the coming crisis: “Although the turmoil in the subprime mortgage market has created severe financial problems for many individuals and families, the implications of these developments for the housing market as a whole are less clear,” he said. “At this juncture, however, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained. In particular, mortgages to prime borrowers and fixed-rate mortgages to all classes of borrowers continue to perform well, with low rates of delinquency.”

The statement would soon prove to be tragically shortsighted, though the Fed ultimately would join with the Treasury Department to devise trillions of dollars’ worth of alphabet-soup programs that bailed out the financial, insurance and auto industries, paving the way for a recovery—albeit grudgingly slow—that continues today.

Honorable mentions: “Dow 100,000″ by 2020, according to the 1999 book by Charles W. Kadlec (yes, we know it’s not 2020 yet, but seriously?); Marc Faber, Schiff and all of the perma-bears (a group from which Roubini has only recently extricated himself) who have been fighting the market all the way up from its March 2009 lows; Whitney Tilson’s 2004 prediction that Google would be “highly disappointing” to investors.

 

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