I Short Sold My First Stock As A Millionaire Challenge Student
It’s official! I short sold my first stock as a millionaire challenge student. In case you are new to this blog, I started the Tim Sykes Millionaire Challenge a little over 2 months ago which you can read about here. Up until yesterday I made a total of 5 trades but none of them was a stock that I short sold. If you don’t know what short selling a stock is you can read about it in detail here. Anyway, I am pleased to announce that I have put my foot in the stock waters and came out with a smile. Here is what happened. (This was not a stock that was on Tim’s watch list)
I had been looking at (ARIA) Ariad Pharmaceuticals, which is not a pump and dump, for a few days because there were rumors of an acquisition by (JAZZ) Jazz Pharmaceuticals. Then I read an article that said Jazz Pharmaceuticals said that they only “reported to be in the mix”. Listen you either want to acquire ARIA or you don’t. Anything in between is bad in my view. It apparently was bad in other people’s view as well.
Anyway, 2 days ago I had noticed that ARIA had started to fade off its highs a bit and couldn’t break past $8.75. In fact it started to down trend right then and there. Then it broke the day high of $8.53 (this is where I should have shorted but got too nervous) and slowly kept going down all day long until it closed at $8.06. I chickened out.
Yes I lost the meat of the move that day but I still felt there was more downside because the next biggest key level would be to see if ARIA could test $8.00 support. My thought was if it couldn’t hang above $8.00 support at the market open then it was a good short for me to get my feet wet with.
At the market open I noticed that it spiked up to $8.25 but felt it was just short sellers covering. Yes I should have shorted right at the top but again I got nervous. Then just like I suspected ARIA quickly retreated. It hung around $8.10 for about 10 minutes and that is when I looked over to 2 fortune cookie quotes that I have on my computer. It says: “Do not be afraid to take that big step” & ” Determination is what you need now”. That is all I needed to hop in.
For 15 minutes my heart beat faster than when my wife gave birth to my kids. I had to do pushups to calm myself down. Ridiculous if you ask me because at best I was prepared to take a $100 loss. Anyway, it went up a few pennies and went down a few pennies but then I saw it was hanging around $8.06 which was the prior day close. I knew that once that broke $8.00 was a goner.
Lo and behold it broke $8.06 and within 5 minutes it broke $8.00. Once I saw a $7.99 print out on the time and sales portion of my ThinkorSwim platform I knew it would take out some stop losses and head lower. Guess what? I was right.
Ok don’t applaud for me too much. Remember my heart was pounding faster and faster before I got in? Well, it kept beating to the point where I pulled the trigger and bought to cover at $7.97. Yes I admit it. I am a wuss but I got my feet wet and I finally short sold my first stock.
Where did ARIA close for the day? $7.75 (Low $7.69)
If you have any questions feel free to ask below. I try to respond to everyone. Thanks for reading.