a painful trading lesson

[oicpecnoc]

I was having one of my better days a few days ago in the market.  I had taken a tip from G and profited nicely on BSM, played my own AMEP hold against Davids advice to .0249 sold it, and then re-entered later at the same price and ran it to .0295 and sold again, Feeling invincible, I devised a plan to go "large" in AMEP at the end of the day if it passed .03, thinking perhaps it would gap up the next A.M., and I did not want to miss it.

It was the end of the day, and AMEP ALWAYS had moved previously in very close ranges.  As I prepared to execute my plan, it went from .03 to .033.  I paniced.  I thought, "Oh my goodness this  thing is going to blow" so I went larger than large for me, 300,000 shares at .033.  Within 10 seconds, I knew I had messed up, and the orders got filled one at a time as I was hitting the cancel button.  Before I knew it, the bid was being chewed up and it was at .03.

Since there was still strong action, I able to dump 200,000 shares for a $500 loss in 180 seconds. 

I believe my error was letting the emotion of fear/enthusiasm to change my plan.  In my mind, if I take the time to make a plan, then you better believe I'm going to follow through on it, even if it changes in mid stream.  DUMB, DUMB, DUMB.

I believe that $500 mistake will save me some money in the future.  Hope nobody else makes it in the future.  On the upside, I admitted my mistake quickly.   My potential loss would have been too great if this was the beginning of a massive dump.

[digitx]

Indeed it is a good lesson for a price 0f 500. I was able to sell mine 140,000 at 0.027 and I bought them at 0.018. Good profit for me.

Having a plan is worth every penny but the most important is not to change from that plan under pressure.

Good Luck.

-Sam

[nikao]

looks like you applied a lesson too; cut your losses..

very good that you didn't hesitate to sell immidiately once you saw your mistake..

applaud

[digitx]

Oh yes. I applied it right away. It was a lesson with a profit.

-digitx

[52 windsor deluxe]

here is one ongoing painful lesson....being stubborn....i bought bmmi at .20 and it got hammered all the stinking way down to .0001....did i sell?.....no, i'm still holding the stupid stock to remind my butt NEVER to do that again!!!!!!!!!!!!!!!........now at the same time....i bought RURL at .35 and by not selling on pullbacks i was able to see the stock soar to ....get this...over 4.00 dollars....in less than 4 months!!!!!!!sold and went out and bought my boy a new car....that was sweet .......lesson learned?....your emotions can cause you to lose a lot of money.....oh yeah...RURL is at $10.16 currently....and still moving up

[QuestSolver]

I was having one of my better days a few days ago in the market.  I had taken a tip from G and profited nicely on BSM, played my own AMEP hold against Davids advice to .0249 sold it, and then re-entered later at the same price and ran it to .0295 and sold again, Feeling invincible, I devised a plan to go "large" in AMEP at the end of the day if it passed .03, thinking perhaps it would gap up the next A.M., and I did not want to miss it.

It was the end of the day, and AMEP ALWAYS had moved previously in very close ranges.  As I prepared to execute my plan, it went from .03 to .033.  I paniced.  I thought, "Oh my goodness this  thing is going to blow" so I went larger than large for me, 300,000 shares at .033.  Within 10 seconds, I knew I had messed up, and the orders got filled one at a time as I was hitting the cancel button.  Before I knew it, the bid was being chewed up and it was at .03.

Since there was still strong action, I able to dump 200,000 shares for a $500 loss in 180 seconds. 

I believe my error was letting the emotion of fear/enthusiasm to change my plan.  In my mind, if I take the time to make a plan, then you better believe I'm going to follow through on it, even if it changes in mid stream.  DUMB, DUMB, DUMB.

I believe that $500 mistake will save me some money in the future.  Hope nobody else makes it in the future.  On the upside, I admitted my mistake quickly.   My potential loss would have been too great if this was the beginning of a massive dump.

Heres the picture imo,AMEP is worth .21 to .25 right now based on known assets and without any production of ONG or NG numbers included,when we reach the .20's if we have had no news or production rev numbers we should stay flat or bounce back and forth a little,but I am betting by then we will have a few PR's to add to the known assets and then increase the base value of AMEP therefore raising the base target PPS.From talks coming directly from the company and its investee's we have already at least estimated tripled production or even more,when the numbers comes in I think we all (including me)will be surprised.

[robt]

How do you arrive at this valuation? AMEP's press releases?

You are aware, I trust, that American Energy Production full staff consists of CEO Charles Bitters, correct?

Not much room for "governance" in a one-man show like that.

I find the company's claims for "amep-hoa-800" to be particularly disturbing. Where did this miracle technology spring from? I can find nothing about it on the web except at the AMEP site.

The only evidence of its origin is in one of the quarterly reports:

"The Company signed an exclusive distribution agreement with Nature's Path on September 25, 2003 to treat, test and market AMEP HOA-800 a heavy oil additive that is used to dissolve asphaltines and change the viscosity of heavy oil to allow the oil to travel through the sand formation easier."

If you can find out who "Nature's Path" is, you're a better researcher than I.

I am assuming that it isn't the Canadian maker of organic breakfast foods.

The company claims that this miracle potion not only makes it easier to get oil from the ground, but magically removes the sulpher from heavy oil and converts it to sweet crude!

MINERAL WELLS, Texas, Sept. 23, 2003 (PRIMEZONE) -- American Energy Production Inc. (OTC BB:AMEP.OB - News) announced today the results from the treating and testing of two heavy oil Olmas formation wells on lease properties American Energy Production Inc. is negotiating to purchase. The two oil wells have a history of producing one half to one barrel of oil per day for the last ten years. After treatment with the heavy oil additive, the two oil wells have dramatically increased oil production, one well making over ten (10) barrels of oil per day and the second well making over twelve (12) barrels of oil per day. This is a 2000% increase from the past production history of the two oil wells. AMEP realizes the wells may not sustain this increased production rate, but any production over 1 barrel per day is a vast improvement. Not only did the wells increase in oil production, the oil additive changed the physical structure of the oil, changing the gravity of the oil from 20 gravity to approximately 35 gravity. The oil usually contains 1.7% sulfur content and now the smell of sulfur is barely noticeable. Changing the gravity and removing the sulfur from the oil is extremely important price wise for the sale of this particular oil. This Olmas formation oil usually brings $2.00 to $3.00 per barrel less than West Texas sweet crude oil. The oil additive will possibly change the oil from South Texas sour crude to sweet crude. AMEP is sending samples of the treated oil to be tested for viscosity and content of sulfur to lab testing facilities in Alice, Texas. The Company will release the results of the test in the future.
http://www.americanenergyproduction.com/PR-03-9-23.html

Your mileage may differ, but I strongly suspect a scam.

[robt]

I think I've found the creators of "Heavy Oil Additive (HOA) 800" --

NATURE'S PATH L.L.C.
10816 CROWN COLONY DR STE 203
AUSTIN, TX 78747
512/280-3736

The same number and address are ascribed to an Austin health food retailer, "Nature's Sunshine."

If these are the guys, what we have is a health food retailer who has devised a formula that multiplies our nation's exploitable oil resources several times over, AND converts cheap heavy oil into fuel grade.

It's nothing short of a miracle. Whoever the genius at nature's Path is, shouldn't he be talking with George Bush right now about the end of our oil problems?

That's as far as my research takes me, I'm not interested in putting money into AMEP. But if anybody reading this is tempted, I strongly urge for you to take a much closer look.

Consider this as well:

AMERICAN ENERGY: Forms New Subsidiary to Invest in Commodities
--------------------------------------------------------------
American Energy Production, Inc. (OTCBB:AMEP) has begun the
process of forming a new subsidiary, Strategic Investments Fund
Inc. (pending verification of name), which will become a wholly
owned subsidiary of American Energy Production Inc.

Strategic Investments Fund Inc.'s purpose will be to invest in
commodities such as oil and natural gas that the Company can hedge
against its current oil and natural gas production of it two
wholly owned subsidiaries Bend Arch Petroleum Inc. and Production
Resources Inc.
http://www.americanenergyproduction.com/PR-04-10-04.html

Having an oil commodities trading operation under the same roof as an oil producer presents some interesting shell-game opportunities. The complex structure of a BDC (Business Development Company, such as AMEP) potentially could cloak some shady oil transfers.

Shake hands with Bitters, if you will, but count your fingers afterwards.

[QuestSolver]

bottomline is that nothing has changed at all,think about it,if we opened and traded normally today and we closed where we are now would anyone really be that concerned? The problem with today was this,looking back on the intraday it appears everyone wanted in this at open and right away,this of course caused an immediate jump in the PPS and then many raised their buys settings and chased it,the PPS rose more under buying pressure,now momo is in play tripping even more radars to buy in and then the DT's took exits and the MM's played right on it,they started dropping the bid support on wide spreads trying to panic traders (which worked for the most part) and stopped to momo in its tracks...all this in one day trading session.Many shares were bought today over .11,quite a bit actually,I even bought at multiple levels above there.Nothing has changed though,NG still going up and won't stop for a while,winters just about coming in and no NG production going on in the gulf,today was a fluke,this will be in the double digits again tomorrow and the traders will try and swing it again imo,lets hope the PR hits us after open!!

       GLTA

       Q

[robt]

amep has their own crew run by charles bitters...he has been in the oil business for over 30 years and has drilled many holes.

I can't find any information about Bitters' career prior to AMEP. Even AMEP's website lacks a bio. Strange that a thirty-year career is so trackless.

You may feel safe as long as the scam hasn't run its course, but these things have a way of surprising people. Take this risk if you want to, but think twice about hyping this to others. Someone is going to be robbed.

[The Shark]

lesson learned!