The market handed me my ass today.  I lost close to $700 in about five minutes in a single buy, which was well beyond my mental 1 day loss limit, but I couldn’t get out of the position fast enough…  Trading with this much buying power can be scary and it was an expensive lesson, but at least I managed to close out before my loss got too out of control.

So, I’m going to take a break from penny stocks for a couple months…  I know I just started, but I want to reassess my strategy, do some more paper trading and maybe do a little swing trading on the side using the tried and true CAN SLIM method, created by the founder of the Investor’s Business Daily.  I’ll still be posting, but I’ll be staying away from penny stocks for a bit.

Stocks traded (updated): SOMX, MRNA, LYJN, FAZ

Daily Profits:  -$853

Here are the entries and exits for each stock:

SOMX: tried playing the dips on this one, but got it all backwards.  Actually, the second buy would have been great, but at this point I was discouraged by my other trades kicking my ass so I sold and went back to bed.

LYJN: bought this one on it’s way up.  Sold it on its way back down.  I tried selling much earlier while I still had profit, but NITEFAN wouldn’t give me a fill.

FAZ: I’m not sure why I sold this one so quickly.  I was probably pretty shaken up by MRNA going south on me.  I should have had a bit more patience but I got cynical and started thinking that everything I touched was going south.

MRNA: This was my big mistake of the day.  Bought at the high of the day.  I thought to myself as I bought that it was breaking the premarket high so it was bound to go big.  I think my mistake was I just put too much into the position when I take into consideration the risk of the buy.