Unfortunately there’s no way to avoid or anticipate buyouts specifically. You did the right thing by selling the majority of your shares before the close to lock-in profits..just think if you didn’t! Taking an unexpected loss every now and then is part of the game of playing these small cap stocks. No one is perfect! At the same time, you learn alot of lessons by taking one to the chin sometimes and that ultimately makes you a better trader.

I was just about to thank you for your NSHA pick a couple of days ago. I shorted a half position at 3.20 and closed out the majority (2/3) of my shares right before the close yesterday at 2.52. Obviously, the company got bought out for a 150% premium, completely eliminating my previous profit.

What I am wondering is whether there is any way to avoid or anticipate these unfortunate developments (buyouts specifically) or whether taking one on the chin every now and then is part of the game? Has this ever happened to you?