iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,414 Blog Posts

About that $FMSA Trade and More

Before time moves on and I forget to post about the FMSA trade, let me explain how I knew it’d work.

FMSA is a frac sand company. This is an industry that was pistol hot a month ago, with SLCA, EMES and HCLP all hitting new highs. By the time they were ready to IPO, the expected range had been lowered to $16-17 due to market conditions. When they came public, the frac sand space was getting annihilated. It was the worst possible time for them to IPO, especially since they had no institutional backing or a solidified retail shareholder base. The result was a rout in the shares, far exceeding the declines in other sand plays.

When I bought into the stock, the sector had the appearance of bottoming out. FMSA’s losses, however, were twice that of SLCA’s. I knew that if the sector rebounded, it would move twice as fast, if not more. I was right, made 30%+ and now I am moving on, which is probably a mistake since the stock will likely trade above its IPO price of $17 in the not so distant future.

Let me tell you something about Wall St, buying and selling stocks. Anyone can do it. My best days trading occurred when I was brand spanking new in the business, early 20’s, without a care in the world. I’ve mentioned my first big trade here many times, which was $6k into AOL turning into $250k in a little less than 3 years time. I had little understanding of the market, only extending to my encyclopedia like memory of stocks, profiles and sectors. The older, more experienced, you become, the less risk you take. Age, inherently, is the ultimate arbitrar between fear and greed. When you are young and have never failed, your inhibitions are without boundaries, invincible, God amongst mortals. After you get dinged a few times, you don’t want to get dinged anymore. As such, you become careful in the manner by which you conduct yourself.

Ignorance truly is bliss.

Trust me when I tell you, the ignorant trader has a short lifespan, albeit an exciting one. The momo chasing gets old quick and before you know it, you’re starting over again.

 

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21 comments

  1. dewey dortmunder

    *arbiter
    Interesting that memory was so important, it’s my best feature.

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  2. dewey dortmunder

    Claro que si, mosca.

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  3. danny1980

    I never ask for much but can someone tell what the hell happened with JAKK yesterday. That was one of my more longer term swing trades. I was up 25% premarket and ended the day down 2% from my cost basis. What the hell

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  4. danny1980

    Oh and their earnings were a beat on both top and bottom and they guided forwarded by 100%

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  5. rahagar

    Nice trade on FMSA, I enjoyed it as well, h/t to you.

    And the TRN thing, snagged it a couple of times for nice moves off this bottom.

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  6. runawaytrain

    Oil looks like it wants to go back and stay at $80

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  7. budh

    Ebola! The market is supposed to be down! Get some fear, be very afraid. Sell Sell Sell!!

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  8. bruce keller

    Very EKG king of looking market this day.

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  9. tradercaddy

    Up/Down 0.00 NASDQs.

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  10. Trent J

    Sir Fly I come to you with 6 thousand dollars for which I too would like to turn into 250k in 3 years. If you had to pick 5 stocks out, right here right now that could make that happen for me, what would be your best guesses?

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  11. flicker

    The best post I have read in a long time. I am living proof of that story. You just can not tell that to the young guns, they have to experience on their own.

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  12. newbalance

    bout time BABA got goin..

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  13. dcolella15

    Wise Words sir. Well said

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  14. fifty2weekhi

    “Age, inherently, is the ultimate arbitrar between fear and greed. When you are young and have never failed, your inhibitions are without boundaries, invincible, God amongst mortals. After you get dinged a few times, you don’t want to get dinged anymore.” — I’ve got to remember this when I deal with my 7 year old. Thank you!!!

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