My 7 nemesis stocks

My 7 nemesis stocks

I am writing this article for a few reasons.

First, just to give you a little more insight into me, the Real Life Trader. Second, as a semi-funny and jovial perspective on trading. Third, so you know my preferences regarding certain stocks. I could have just called this article '7 Stocks I Hate”, but hate is a strong word and yes, mom, I've learned my lesson ; )

The stocks below are what I refer to as 'my nemesis stocks', meaning I don't trade them because I can't. Now, I know I'm supposed to be the super positive guy and I know 'the things you say shape your life”. I get all that. But truly, after seven years of trading I've come to a realization. I'm a good trader and a great teacher and accountability coach. I've recognized consistently that I cannot personally trade the stocks below. No idea why, but if I have some analysis on the stocks below I'll lose high 80% of the time without exaggeration. Therefore, if you are thinking, 'Well, Jerremy, do you trade them?” The answer is no. I do not. Not any more at least.

7. ISRG - A wild stock that has options, but the bid ask spread of the stock, the option, the insane gaps and the seemingly strange movements; this stock is one I have learned a few lessons which ensure I stay away from it.

6. GG - I actually like trading GLD, SLV, SLW and a few other metal companies like ABX or FCX. However, in my opinion, GG does not follow the market and it rarely follows gold, or anything else for that matter. I think GG does what it wants and therefore I don't personally trade it.

5. AZO - What a crazy and insane stock this one is. Don't even mind the fact that AutoZone is trading over $700 a share as I write this, but I've missed pretty much every bounce since 2010. I can trade this stock in hindsight very well, but apparently breakouts and / or the retest of breakouts, gaps, or moving averages do not affect this stock at all. It's in a zone of its own.

4. F - There are a few sectors I also do not trade; more on that at the bottom. My dad raised me to be a Chevy driver. I know almost all of the Fixed On Road Dead acronyms and apparently the root of what this company is drives it's point home in my subconscious and I rarely trade this stock profitably. It's a low dividend, inexpensive 'good ol' American blue chip company' type of stock with low covered call premiums. Day trading, swing trading, option trading, I can't do any of them on this stock, so I stay away or get run over.

3. BBRY - I think I know my issue with this sweet vixen. It's just the fundamental bearish bias I have. Every time I look at BBRY (once RIMM) I think bearish. It has worked more than many others on this list, but not when I'm in the trade. Day trading BBRY is crazy volatile also. I love the actual berry, loathe trading the stock, therefore I don't.

2. BIDU - This stock is like me at seven years of age. Undisciplined, wild, rebellious, unyielding and doesn't follow 'orders'. Many traders don't like BIDU. I've lost more money on BIDU than the number of times I've lost my wallet, which is often. If I do win on a BIDU trade, it's usually a credit spread, but that's pretty few and far between.

1. SNDK - My number one, least favorite stock of all time, hands down. I really could just forget all other six and write an entire article on the depths of despair, nights of tears, empty bank accounts, gloomy days and sweaty palms that SNDK has given me. Of my trades on the other six stocks listed here, I do not know my official trading record. On SNDK however, I am fairly certain I am 1-85 or something on my trading. That's right: one winner, ever. It was a day trade that a dear friend of mine, Dori (who knows my relationship with SNDK), texted me about the day before. It was the bearish gap on 7/17/14. She texted me and said 'Look at that gap on SNDK. Even you couldn't mess that up!”. She was right. I did place that trade and I made 3% that one day. Other than that, SNDK is a completely mysterious wild witch of the west and I don't trade it. I look at it, create my analysis for others, which is usually wrong, and just move on. Maybe the only way I can trade it is if Dori gives me a plan the night before. Or perhaps, it's just not a stock that likes me very much.

Notice traders, I only have seven. I really do feel that traders can trade just about anything, but I've come to the realization that I don't trade the above stocks very well. Traders who've been around usually have four or five nemesis stocks.

Regarding 'sectors' I usually don't trade:

Automobiles: (specifically F, usually GM, or HMC)

Pharmaceuticals: Crazy right? I don't swing trade the Pharm industry because it's so hard to mitigate risk. Everything hinges on news stories and I don't trade the news; therefore, I don't trade Pharm companies.)

Telecom or Internet: Let's be honest with ourselves. Who actually enjoys the customer service of Verizon, Sprint, AT&T or Comcast? Probably no one. That's why they consistently get low rankings. I personally believe customer service is the most integral part of any company. I also realize VZ, S, and T also pay nice dividends and they are good companies to own. However, I do not actively trade them because of my deep seated subconscious thoughts of how unhappy I've been with every cell phone or Internet experience of my entire adult life. Therefore, they get $0.00 of my money through shares. They already accumulate almost 20% of my monthly bills.

If you every have any other questions about my weird thoughts, quirks, or random idiosyncrasies as it relates to the market or life, feel free to email me anytime. jerremy@reallifetrading.com