That’s how I felt when I read THIS post from my web designer Pallian.
(you guys better know where this quote is from or else….)
The schmuck has been working with me on this website/projects and new ones for nearly seven months and after I finally get him to open a trading account with Thinkorswim so he can profit alongside TIMalert subscribers, he goes and wastes his first trade, while I’m away in Japan, buying a stock I’ve shorted several times and would never ever recommend buying.
His reasons for buying:
About a week ago, I bought a certain Uranium stock called URRE. I bought it because 1) there was talk of a takeover by a bigger firm, 2) the stock was still reasonably priced for a company that had over $7 billion worth of the radioactive mineral and 3) I wanted to gamble.
All reasons go against my teachings–as I preach again and again in my PennyStocking DVD–which he readily admits:
Now if you ever read any of TIM’s blogs – the first thing he mentions is to ignore all 3 of the above points. He focuses on charts – and not the company. He doesn’t care if there’s going to be a takeover or if the company is legit or shady – if he sees a chart pattern that is sure to be a winner, he trades or shorts.
Now when I see this blatant lack of discipline…this utter contradiction–between knowing I’m successful with my teaching/strategy and going ahead with a trade I’d never permit anyway–I’m tempted to get angry. Hell, it’s not even just a temptation, Pallian is in town working with me on these new sites coming out next week, and after he told me, I definitely let him have it…for making such a stupid trade and for forcing me to write this post to show you guys just how stupid a trade it was.
But his mistake/stupid stupid loss, is your gain. Pennystocking truly is about discipline, all penny stocks are not created equal and it’s easy to fall off the wagon and lose. Until I came along with my DVD and website, 99% of people out there playing penny stocks were suckers…now maybe that figure is 96-97% so I’m proud, but I have a lot of work to do.
Listening to a penny stock’s PR? NEVER BELIEVE IT! Takeover talk? NEVER BELIEVE IT! Trying to justify a penny stock’s valuation based on anything they say…NEVER! Trading just because you want to gamble, ahhhhhhhhhhhhhhhh you friggin moron, that’s the single worst excuse in the entire world!
And look at URRE’s chart, it’s absolutely horrendous:
…for longs anyway. Every spike….every friggin spike has failed and the stock has made a lower low each time.
If Pallian had shorted into that takeover talk spike, I’d say risky, but yes, that’s a viable strategy, you’re going with the long-term trend. That’s a safer better than betting on some massive recovery that somehow hasn’t happened any other time this year.
Tags: Bad Trades, Testimonials, TIM Lessons
