On March 19th GGC came up on my screeners as a potential short. It was set up perfect for a perfect meltdown after going from .25 to 1.75 in 3 Days. YES! 3 Days! All because of some credit agreement the company made with its lenders. While this is not exactly your typical pump/hype news that I love to short the stock became crazy waayyyy over-extended so I had to do it.
I was eager to short the heck out of it as soon as it busted some key support in the $1.50ish area. Surely enough it busted through that support in the early morning and I entered my short at $1.45 and proceeded to watch it literally tumble down to 1.23 within 10 minutes. I was up over $400 at this time but my greediness took over and I kept telling myself that It had to go even lower.
Well, a common early morning short squeeze came through and within another 15 minutes I was about even. Since it was my 1st trade for the new blog I wasn’t going to mess with the stock anymore and closed out at $1.46 for a minimal $25 dollar loss. Would have been $28, but I still have some free trades with Sogotrade!
I woulda coulda shoulda maybe held on and I would’ve caught that sweeet afternoon-fade back down to the low levels of the day. But I’m not always right, and I had already gotten beaten once.
So yes, while i got JUICED by the short squeeze I did learn a valuable lesson today: Take your profits and move on, especially if it’s a huge sell-off early in the morning because there’s a great chance of a short squeeze then. Also, I can’t forget I could’ve sold part of shares whenever I had that profit but I wasn’t thinking about it at the time. That definitely would’ve taken some emotion out of the trade.