Short term Investor/Day Trader: LEND & FMT

If you read my post about LEND buying and the fundamentals. You must be waiting for this post. yeah last week LEND moved from 3.8 + (my buying price 4.04) to 11.93. I had a trailing stock as soon as the stock jumped to 10 and my trailing stocks were sold in two lots (9.43 and9.51) - a quick 120% return over 2 days.

	03/13/2007 14:41:51		Bought 100 SAY @ 21.44		-2,153.99		-$5,153.99
	03/13/2007 15:06:22		Bought 100 LEND @ 4.0475		-414.74		-$5,568.73
	03/14/2007 02:31:15		MONEY MARKET REDEMPTION		3,000.00		-$2,568.73
	03/14/2007 02:31:36		MONEY MARKET REDEMPTION (MMDA1)		0.00		-$2,568.73
	03/15/2007 15:14:55		Sold 50 LEND @ 9.5125		465.62		-$2,103.11
	03/15/2007 15:23:05		Sold 50 LEND @ 9.4306		461.52		-$1,641.59

Now I am kicking myself for not buying more ;) Greed never stops, But I am happy with my decision. If my story about the firms monetizing their loan portfolio doesn't hold, I wouldn't have been hold on to these very risky sub prime scrips for a long time in these murky stock climate.

I am also happy with this investment as it balances some of the losses ( 1500+) I have had due to my DOW calls. I have already lost money on March calls and I have to minimize losses on Apr calls. Will keep you guys updated.

My other investment SAY is going down, but that was a 12 month investment.

I also tried my hand at day trading in sub prime stocks on Friday. After 3 unsuccessful attempts, my fourth one was a break through. The current

	03/16/2007 14:38:52		Bought 1000 LEND @ 10.98		-10,989.99		-$10,062.85
	03/16/2007 14:43:07		Sold 1000 LEND @ 10.9832		10,972.87		$910.02
	03/16/2007 14:58:53		Bought 300 LEND @ 11.26		-3,387.99		-$2,477.97
	03/16/2007 14:58:53		Bought 200 LEND @ 11.28		-2,256.00		-$4,733.97
	03/16/2007 15:01:05		Sold 500 LEND @ 11.271		5,625.33		$891.36
	03/16/2007 15:26:27		Bought 1000 FMT @ 8.529		-8,538.99		-$7,647.63
	03/16/2007 15:38:28		Sold 500 FMT @ 8.55		4,264.87		-$3,382.76

The First two LEND trades were not going anywhere and there was some resistance, so I just cut my exposure. The last FMT trade seemed to have some momentum, but was hitting triple top resistance so I paired down my exposure from 1000 to 500. Finally, It was able to break through the triple resistance and is currently trading at bid ask 8.92-9.05. There is a support at 8.75 and minor resistance at 9.25 and finally Friday top of 9.50.

The only problem is that if I do more than 4 round trades in 5 days my account will be flagged as a day trader account. So, I will have to be careful :) So, I need to get up early and trade out of this. Normally, I would have closed this position, but day trader flag message from my broker along with my belief that this is the most well managed of the sub primes, made me decide that I can run this over the weekend.



Finally, I will leave with the thought.

"In the turbulent stormy sea, the boat with the most emotionally stable and experienced captain and the biggest size has the most probabilty to succeed."