2 Wild & Crazy Stock Charts & Videos That Teach Important Lessons
Posted by timothysykes on Thu 5th of Jun, 2008 03:47:47 PM
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First up is NTI, which I shorted successfully again and again, several points ago…proving that while there’s money to be made on the short side, there’s even more to be made on the long side. More importantly, if you do short, you gotta recognize the difference between consolidation and gradual fading…NTI kept making higher lows and when you’ve got a stock this illiquid filled with determined/naive long-term shorts, it’s practically a short squeeze made in heaven, which is what’s goin’ on today. Learrrrrrn
And every now and then, there’s fun charts like the one of similarly illiquid AQQ, which as you can see has spiked verrrry nicely on verrrrry little volume. The company, scared of the SEC coming down on them for manipulation, came out and said they didn’t know why. What’s the real reason behind the move? Who cares! Volume of 20,000, spreads of $2+…not good variables to even be worth your time…keep it on the watchlist for entertainment sake, focus instead on just-as-volatile-percent-wise-but-infinitely-more-liquid plays like PTEK
And, I’ve saved the best for the last, these two videos of a corporate drone going wild have been passed around by drones everywhere the past few days…TIMtv’s got them HERE and HERE…the lesson they teach: working cubicles sucks, thank God that if you get good enough at PennyStocking , this will never be you!
Now you can Twitter any questions/comments to TIMhelp and obviously you can follow TIM on twitter too!
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TIM Alerts
View All| Date | Stock | Position | Ideal Exit | % Gain |
|---|---|---|---|---|
| Nov 24 | KVHI | Short | $3.70 | 18% |
| Nov 20 | STSX | Short | $3.10 | 11% |
| Nov 18 | PERY | Short | $3.75 | 25% |
| Nov 11 | IIJI | Short | $2.80 | 5% |
| Nov 6 | CVI | Short | $4 | 15% |
| Nov 5 | MECA | Short | $1.95 | 51% |
| Nov 4 | CVI | Short | $4.81 | 4% |
| Nov 3 | NAK | Short | $3.20 | 5% |
| Oct 29 | EVC | Short | $2 | 26% |
| Oct 28 | HSNI | Short | $6.80 | 7% |
| Oct 28 | HSNI | Short | $5.75 | 4% |
November: 9 alerts, 15% avg gain
October: 11 alerts, 14% avg gain
I thought the price action on AQQ would generate volume on it’s own, hasn’t happened yet (Tim is right there), I guess it’s a long term short for me. I think it’ll fall nicely when the bears raid tomorrow (I know, an irresponsible market prediction but I’ll go with it for now). There is a hella lot more downside than up for this crooked ass stock.
i hope u get squeezed, every stocks i crooked, it doesnt mean u just short them for the fun of it…u might be right but u gotta learn to trade scared
Well, I think I might actually be starting to mature in my trading career. I followed several stocks today (all thoughout the day) and none of them had the risk/rewards that I thought were worth the investment. I finally did not trade just for the sake of trading (a mistake so many on this board seem to make)!!! Anyways, congrats Tim on another $500 day, had I remembered to reserve shares of PETK I’d be right there with you. Alas, last nights bottle of Silver Oak 2001 made me forget all about it…
good Jeff!
aawwwwwww, c’mon now, where’s the love man? just say “good luck” and after I lose my shirt say “hahahaha snipah6, him so wee todd did!”
Ok I want to ask this question - PCYC closed at like 1.55. Any thoughts on what might happen in the morning? The ask went instantly to 2.46, now it’s back down to 1.74…any tips on what that means? What the whole afterhours situation could mean for the opening tomorrow?
Is it completely possible that it goes to crap right after the morning bell?
Just curious as to what people think…
I was looking at PCYC, but it was such a strong move (50% increase) for one day that I felt it was too risky to buy it into the close. Mike13th mentioned it this morning premarket, and I almost bought it then, but was trigger shy due to some recent burns. You should hang out in his chat room…he does a good job of alerting to these potential strong momo stocks right when they start.
NTI - Super :) congrats to all long and short
its call tough love and its good for u in the long run
Yngvai, where is this chatroom that you speak of?
YngvaiMalmsteve.. - what is the link to mike 13th chat..
thinkin of jumpin in on CMOS AH.. what would make this go up.. only see one news on it..
For Mike13th’s chat room, go here:
http://greenonthescreen.blogsp.....a-try.html
…then click on chat room on the right
Here’s a link on the G-Pattern/STEPS pattern:
http://thetechnicaltrader.net/.....pic=1084.0
TomT, I’m using charts, momentum…those types of things. I’ll look at the news to see why a move is occurring, which may affect my decision. But a lot of these can move a long ways on very little news at all…NTI for example. But I’m NO expert by any means…right now I’ve been really really sucky at trading (but slowly improving as I’m getting better at setting and following rules). I’ve got a really tight stop set on CMOS in case this momo doesn’t continue. My #1 rule for myself now, in cap letters at the top of my rules list, is IF THE REASON YOU GOT INTO A TRADE CHANGES, THEN GET OUT. Hence why I have a tight stop on CMOS…I’m buying the breakout and expecting a continued move…but if it doesn’t continue, the reason I got in has now changed and I’m out quickly with a very small loss.
For Mike13th’s chat room, go to his “Why trading is like heroes” blog and click on the link to Muddy’s site.
For the G-Pattern/STEPS pattern, go to thetechnicaltrader.net and go to the forum under technical analysis.
Ooops, I meant Timmay’s “Heroes” blog
Added another 6K (5.5%) in gains today.
Yeah, that’s right that’s what you meant…sucka…foolish sucka ;)
Mike_13th
June 3rd, 2008 at 10:22 pm
Mike, what do you think PCYC is going to do tomorrow morning? Anything interesting?
Has yahoo finance stopped showing pinks? I swear lately I’ve been searching stocks on there and they have no profile…no information.
SOLI for instance. I just searched it, didn’t find shit.
honestly don’t know about PCYC but i held over.
it’s its first day breakout plus the volume was insane over its average
I use Stockfether to scan and they have almost all pinks plus my brokers it was active on Scott and IB.
Actually saw SOLI on my beloved scrolling Scott hod list
oooops,i WAS trading/posting on the wrong thread today
Tim keeps putting up new posts and i’m so busy in my chatroom i don’t notice it,duh.
see i’m not that smart,like Tim says about himself “you can trade better me” :)
NTI - What a Day
http://super-trades.blogspot.c.....t-day.html
Want to see some twisted thinking that’s put me in the house of Jesse Livermore-type pain?
Action # one: I shorted NTI a few days ago for a quick $400 profit
Thought # one (Tuesday): Shorted 400 shares of NTI at $14 telling myself the sideways price action will collapse eventually and fill my pockets with green folding bliss
Thought # two (Wednesday after holding overnight): Watched it spike above 15, then back down around $14.30 while telling myself it’s about to tank- and watching Tim post that I should be out of it cuz it’s consolidating, not a perfect play, blah, blah, blah…
Thought # three (this morning after holding again): Will probably spike and come back down for good…
Current thinking after being down over 2k at one point while it flirted with $20: I shorted MXC at $38, watched it go to $55, then covered at $35.50- NTI will do the same thing…
Why do we do this to ourselves again and again? I need to cover and buy the DVD, but I know I’ll probably wait again tomorrow for the inevitable fade, hoping it’s sooner than later. Can Anybody else relate with the gut-wrentching, “never gonna trade again”, I’m so retarded feelings? Kind of like alcoholism, actually.
Evan-
Good luck!
Evan, I often feel like that - but I don’t know anything and I’m not making good moves mostly ;) Someday though, I fully expect to make plays that are smart and I don’t feel like I’m getting kicked in the stomach constantly…Plus, I’m sure once you’ve got a monster account and have experience it probably just…goes smoother :P
Unless you get too greedy.
What up Tim? What do you think of TRCA? Think this sucker will fill the gap?
SLAT pump it!
It’s a pump
PARD watching for the fall also
Evan,
Yes, I could tell you the horror stories (as could many others - such as the host of this site), but the point here is not to trades war stories. What you need to do is clean your trading slate quickly regardless of the financial and emotional pain. Then, you need to carefully note (in all the gory details) what you did to lose money. You will find that 95% of the reasons were obvious, but there will be an additional 5% that you will uncover for the first time (usually something to do with your personality that u didn’t think about). You will accept the loss, not think about the money no longer in your account, but rather, think about what you will not do again the next time. Write down what you will not do again, keep it in front of you for a solid week and look at it every morning before you trade. Actually saying those things in the morning before you trade is a good way to inprint those thoughts. Do it for a solid week.
Do not, I repeat, do not let the money lost reduce your confidence in yourself - it is just money. It is not your self esteem. You will accept some painful truths about yourself in this reflective period, you will change a few of those unpleasantries about yourself. You will also make similar mistakes in the future, but they will have smaller financial consequences because you will have learned lessons along the way. Evenetually, you will learn how to stop eating like a bird and shittting like an elephant. Until then, remember that this is a process you need to learn and it does not reflect on you as a person per se. Once you engage in this process, you will stop lying to yourself about the false reasons you take and stay in certain trades - and you will begin to be honest with yourself and tell yourself that you yourself are full of crap when you try to convince yourself of false reasons for entering trades.
You see, Tim’s pain-in-the-ass, in-your-face-approach has two very important messages:
1. Have a solid set-up/reason for getting into trades, and
2. Stop lying to yourself when you try to convince yourself that this time it is different, so you can violate your rules
People say that trading needs to be an unemotional exercise. I totally disagree. The setups that people use need to be based entirely on emotion, like the emotion you feel for a loved one. That way, you completely believe in it and will not cheat because it is real. That’s not to say that it is blind committment. Relationships need tweaking every now and then. The only way you can get to that level is to stop lying and fooling yourself about what you see in the charts and what you are doing in trading. Once you have comitted yourself completely to a technique/setup, and that committment is based on honest self/technical evaluation, you will be on the road to being consistently profitable.
Tear…
Well said Al40…
and good on you Evan for posting your failures… it’s growth brother… mental, spiritual, emotional growth.
I have a rule in my rule list that I just moved to the top of the list this morning.
The rule reads, in capital letters,
“IF THE REASON YOU GOT INTO A TRADE CHANGES, THEN GET OUT”
I successfully did that with NTI. I went into the trade expecting a certain outcome based on the chart pattern. However, the chart pattern changed, so it was then time to get out.
YngvaiMalmsteve - from what I read…. about the G pat and steps.. from the site you said..
If I understand right. IVN would fall into this pattern.. correct.
Out of NTI at $16 today - I want to complain, but obviously it could be much worse.
IVN doesn’t fit the pattern because the volume doesn’t stand out. The volume surge has to stand out from the rest of the chart.
Tim,
Great interview with Adam Warner on his site. Loved it!
CYPW is gonna be my big watch tomorrow, funny action today will probably jump in if it goes red tomorrow.
Hey all Check out LVLT… The guys in investors hub watched this all the way and are laughing to the banks…HUGE shortsqueeze…Insiders selling all the way up, after market vol thru the roof! huge gapper and shorts jumping on the band wagon
http://stockcharts.com/h-sc/ui?s=lvlt Just got downgraded
and then it takes off? This has got to be a huge play somewhere..but the volume is fierce right now …so ask TIM
I’m back in play guys, like I never left you. Still in job training during the day.
Set orders for the day.
250 regn @ 15.85
250 ctx @18.11
88 sino @ 13.15
Couldn’t help it, I had to make a play. Put the limit orders up higher than the price and lets roll the dice bebe!
Good job gettin back to the 50% Timmmay.
new post stocks to watch:
http://www.timothysykes.com/20.....yet-again/
SOIS going red!
TRX nice short after fluff news
ROYL going near 10
ROYL…. just beautifull…. could go all the way down to 9.20 today… it peaked @ 10.20’s, but waited and I got in @ 9.90. and if it popped over 10.15 I would get out, but never did… just had a nice downtrending fading action..
Guys,
Thanks so much for your comments and rules to live by last night. What a crazy day for the market! In case you’re wondering, I’m still holding my 400 shares of NTI. Even though I haven’t watched the DVD yet, I would ASS-U-ME this stock is getting tired, as well as the pumpers. As soon as they move on to other fish, this should inevitably settle down to it’s normal range around $9-$11. I’ve seen the responses to posts like this “who cares what I assume and think should inevitably happen”, but I have watched every single one of Tim’s calls fade over time- I’m willing to wait it out. The stocks being manipulated by very few people groups- they actual company hasn’t found the cure for AIDS or released any news that would validate the current price.
side note- AEND had a good day, and actually has a pretty good product in their Havoc energy drink.