Wall Street Sequel: Idiots Never Sleep - Timothy Sykes

Wall Street Sequel: Idiots Never Sleep

Actually, the name of the sequel to the hit movie Wall Street is Money Never Sleeps and when it debuts in 2009, I have little doubt that its focus will be on absurd sums of money, greed, opulence and corruption in the finance industry. As will the upcoming TV show about hedge fund managers from Entourage creator Doug Ellin. Unfortunately, this is what the majority of people in and out of finance think Wall Street is all about (while there should be more emphasis put on the journey as the awesome There Will Be Blood does (saw it two nights ago, review forthcoming).

But other than the first paragraph, this post does not deal with Hollywood’s perception of the financial industry; instead, I’m talking about the idiots who keep emailing me, thinking that this youtube video shows my strategy.

This is their main exhibit as to why I stink at trading and am doomed to fail! They are idiots.

Let me make this very clear: the strategy I advocated in the video was ONLY for the $1 million CNBC stock picking contest. Since there were over 375,000 contestants and contest rules put the emphasis on weekly gains, it was right to bet 100% of your portfolio on low priced stocks like Six Flags (NYSE: SIX) (as the winners later proved).

Not so in the real world because in the real world, you have to worry about the risk of losses! In the contest, whether you gained 5% to 20% or lost 5% to 100% of your capital, you didn’t win, so the risks didn’t matter. It was all about big gains. Go big or go home. When I first started trading, I frequently risked 50-75% of assets on one play, but that was 1999-2000 and ignorance truly was bliss. Now, if you read my blog, book or watch my DVD, I recommend using no more than 20-30% of assets per play and maybe even 5-10% for beginners.

So, what can these nasty idiots teach us? Simple—there are a ton of dumb people in this business. They are quick to jump to conclusions without doing the proper due diligence. (Think me and my investment in Cygnus) I don’t write this to mean, I bring it up because for my first post in 2008, I want you to understand that you must learn to be thankful for their presence because it is their money that you will take. After all, these idiots either manage their own money or if we’re lucky enough, they manage OPM (other people’s money) too, both of which they will most likely be handing over to people who do take the time to do thorough – and I do mean thorough – research.

A perfect example is me and my investment in Cygnus. I fell in love with their technology and its potential and besides losing a bunch of money (nearly $500,000 as of my last count); I learned a ton of lessons. Lessons that will help me for the rest of my life and which I will gladly share with you. After all, when I made that investment, I was one of those idiots I now write about. The more experienced market players must have been drooling to take my money, the money of my friends and family and my fund’s investors. After all, I was one of those idiots who managed other people’s money. (See how it all comes full circle?)

So, as my first lesson for 2008, don’t go to random restaurants in NYC. Do your due diligence. You can start with this list.

Posted in CYGT, Link Love, Rants

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one comment

Timothy Sykes

Hey Everyone,

As many of you already know I grew up in a middle class family and didn't have many luxuries. But through trading I was able to change my circumstances --not just for me -- but for my parents as well. I now want to help you and thousands of other people from all around the world achieve similar results!

Which is why I've launched my millionaire challenge. I’m extremely determined to create a millionaire trader out of one my students and hopefully it will be you.

So when you get a chance make sure you check it out.

PS: Don't forget to check out my free Penny Stock Guide, it will teach you everything you need to know about trading. :)

  1. Pingback: First Quarter 2008 Review: Earn 21% Every 3 Months And You’ll Live A Happy Life | Timothy Sykes - Stock Trader, Author, Entrepreneur

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  3. Crazy Mike

    Hey Tim, I sent you an e-mail. I have not been getting any updates. Missed the alert on FEED. Can you please look in to this problem?

    Thanks

    PS: I get files/e-mails all day long at my work so i’m prettysure it’s not on my end.

  4. tbohen

    TIm, normally I ask for 1000 or 2000 shares etc. How do you get 200? Do you just keep asking at a lower amount? I’ve never had a broker at TOS say, “I don’t have 1000 but I can get you 200.”

    Of course that is if you don’t get pcarlson and he disconnects you instantly 🙂

  5. tbohen

    RIght but do they just offer that up? I have always either gotten a yes or a no on my request, never a counter offer of fewer shares? Do I phrase that in my request to them? That I want 1000 but I’ll take whatever they have?

  6. Jeff C

    Report his ass as an ass….love the cougs on Bloomberg in the AM….morn porn…plenty of long plays today too, and I get the same response Tim does from TOS quite often

  7. YoungGunz

    yeah, pcarlson is in and out quick. You have to look at the bigger picture though and realize that he is also getting to more people faster because he is doing that. He should leave the chat open for the customer to close it themselves if they don’t have anything else to request.

  8. derevyan

    Tim,
    Check out amd – gained 30% today in pre-market trading over some news. Potential short later on today..?

  9. tbohen

    YG, on pcarlson, I realize that, i wasnt crying just wondering how to go about getting fewer shares that I originally wanted when I can’t ask a followup question.

    Still looking for help on how to get a smaller amount of shares:

    RIght but do they just offer that up? I have always either gotten a yes or a no on my request, never a counter offer of fewer shares? Do I phrase that in my request to them? That I want 1000 but I

  10. Getshorty

    I have got offered less without asking, I f you want to make sure they offer you whatever is left just tell them

  11. tbohen

    OK typically this is my request.

    need 1000 shares of ABC to SHORT

    I will now try:

    need 1000 shares of ABC to SHORT, or fewer shares if availible.

  12. be-the-ball

    Tim, you ignore the chat room and post here. Figured out that you don’t get page views if you have a chat room and that hurts ad revenue?

  13. be-the-ball

    Tim, do you plan to pay for the full chat service so people don’t have to see the annoying ads?

  14. be-the-ball

    i use adblocker, it’s not the sight of the ads, its the fact that the loading of the ads slows down everyone’s systems, effects trade executions for those of us thaqt work quickly.

    understood that you are trying others out, but it would be good if eventually the ads are gone

  15. be-the-ball

    so pennystockers can beat out 9990 high school kids, housewives and frat boys in the market…

    goody, gumdrops

    😉

  16. be-the-ball

    no, you are correct, lots of the big boys getting their butts handed to them yesterday.

    And our holy spirit, aka Cramer, is down over 30% YTD

  17. be-the-ball

    no, you are correct, lots of the big boys getting their butts handed to them this year.

    And our holy spirit, aka Cramer, is down over 30% YTD

  18. tbohen

    When do I get a post featuring me, about how super cool and good looking I am and what a great penny stocker I am, since I’m sure I’ll have #2 spot for one day till I fuck it all up and drop to number 9999999 on the list….

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