Kris Velma, whom I wrote about earlier, continues to reveal a lot about his day trades on Twitter. I was interested in this play in BRQS … let’s take a closer look. He shorted 6,546 shares at a $4.984 average (position size: $32,625.26) and covered 6,546 shares at a $4.495 average, which gives a gross gain of $3,201.87. I don’t know what his borrow fees were exactly, but let’s say they were $200-$300.

As you can see from the chart below, the maximum unrealized loss he sat through was $18,760.84, so he was risking at least five times his eventual reward. Is this a trading style you want to emulate? I’m not sure what his strategy is for stopping out of positions, but “maximum adverse excursion” is one stat you should pay attention to.