CHATROOM

Why My Trading Strategy Is Ideal For Those With Small Accounts…

December 16, 2008 at 5:00 pm
by Timothy Sykes

Watch these 7 free video lessons on how I became a millionaire

I love getting emails like this and thankfully it happens once or twice/day, here’s a good one:

Tim,

I generally keep fairly quite on the boards but i think you would probably recognize my name as ive been around your site for quite some time.
You used to mention me in posts back before TIMalerts where around (think GRO and PTEK)

I just wanted to give you a brief testimonial because this is actually the first place i started coming regularly when i got into trading and i feel that i owe alot of my success to this community as well as muddy and the guys/gals over at Investorslive and Fous at thetechnicaltrader.net

I am a 21 year old university student so in the recent months i haven’t even been trading everyday, the liquidity of this strategy and the ability to take a day off when you need it has allowed me to continue with a degree and make some decent cash, so hats off.

Since i started here with 5000$ (Canadian) i have made a gross profit of 8,300$ (American), so nearly 170% not including the 22% difference in exchange that i have to account for now (at the time i started the dollar was near 1:1, so the growth in exchange alone has turned me a profit greater than most fund managers)

I am on Covestor but the way it calculates does seem to screw me due to the fact that i DO use leverage. Regardless i have been on the leader board for some months.

Anyway im sure you could always use another testimonial and i figured i would let you know that the work you do here is appreciated.

Some notes:

1. Yes, the beautiful thing about PennyStocking is that there aren’t perfect plays every day, you can have days off, go to work, have fun with your kids/wife/girlfriend, patience is key

2. The potential % returns down here in the guttter are ridiculous, I fully expect everyone who learns from the chart patterns/lessons contained in my instructional DVDs to earn 100%+/year, especially if your account is under $10,000.

3. I might be the only one with instructional DVDs but those other sites mentioned are great for the same kind of trading I do and no I’m certainly not the best trader out of the bunch.

4. The younger you start the better…don’t focus on earning big $ gains immediately, this is a long game–much longer than any sport–so if you master your trading inside of a decade, you can have three, four, six, even eight decades worth of high probability trading and in that time, you’re almost guaranteed to make solid profits…the key is learning over time.

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  • Dar

    Tim–
    Is this the “noobtrader” guy who is no longer updating his blog? I’d been curious how he’s been doing since he stopped posting.

    As for yourself, it certainly appears with a $40K+ bankroll now you’re no longer restricted by the PDT rule. Are you going to be breaking loose anytime soon, or are you sticking with your current trading style?

  • Dar

    Tim–
    Is this the “noobtrader” guy who is no longer updating his blog? I’d been curious how he’s been doing since he stopped posting.

    As for yourself, it certainly appears with a $40K+ bankroll now you’re no longer restricted by the PDT rule. Are you going to be breaking loose anytime soon, or are you sticking with your current trading style?

  • tester

    Congrats on whoever wrote that email! Really motivating and encouraging.

  • tester

    Congrats on whoever wrote that email! Really motivating and encouraging.

  • tester

    Thanks to Tim, Muddy, IL and all the masters of the trade!

  • tester

    Thanks to Tim, Muddy, IL and all the masters of the trade!

  • tester

    Tim, I read in a previous blog about you suggesting some sort of business proposal to muddy and other masters. Has it come to fruition yet?

  • tester

    Tim, I read in a previous blog about you suggesting some sort of business proposal to muddy and other masters. Has it come to fruition yet?

  • Dave Spoon

    Can i ask who is Muddy? I have read many posts with him mentioned. Does he have a website? where can i read more about him? does he have a blog/chatroom where peeople follow his picks?

    thanks

  • Dave Spoon

    Can i ask who is Muddy? I have read many posts with him mentioned. Does he have a website? where can i read more about him? does he have a blog/chatroom where peeople follow his picks?

    thanks

  • Dar

    Dave–

    Look at the comments here:

    http://test.timothysykes.com/2008/12/14/how-one-of-my-most-successful-students-with-a-small-account-made-3200-in-a-few-days/#comments

    Muddy himself has posted everything you need for your questions.

  • Dar

    Dave–

    Look at the comments here:

    http://test.timothysykes.com/2008/12/14/how-one-of-my-most-successful-students-with-a-small-account-made-3200-in-a-few-days/#comments

    Muddy himself has posted everything you need for your questions.

  • Double D

    Tim,

    I’m new to the site although I read your book last year and loved it! This post brought up an interesting question. You say that this strategy is ideal for small accounts, especially those under $10,000. You also say that this strategy should bring in an expected return of 100% (assuming of course you fully understand the strategy, work hard at executing the strategy properly, and stay disciplined).

    My question is, at what point does an account become too large to keep using this strategy? I know you grew your account to more that $1 million, but presuming that that was an extreme case and perhaps a benefit of extreme market conditions, at what point does an account become too large to expect 100% returns with this strategy? If it is ideal for small accounts, what about six-figure accounts or accounts of $500,000-plus?

  • Double D

    Tim,

    I’m new to the site although I read your book last year and loved it! This post brought up an interesting question. You say that this strategy is ideal for small accounts, especially those under $10,000. You also say that this strategy should bring in an expected return of 100% (assuming of course you fully understand the strategy, work hard at executing the strategy properly, and stay disciplined).

    My question is, at what point does an account become too large to keep using this strategy? I know you grew your account to more that $1 million, but presuming that that was an extreme case and perhaps a benefit of extreme market conditions, at what point does an account become too large to expect 100% returns with this strategy? If it is ideal for small accounts, what about six-figure accounts or accounts of $500,000-plus?

  • http://test.timothysykes.com Timothy Sykes

    the upper limit depends on how many plays there are and no 100% returns are not for skilled people, thats worst case scenario, if u have any intelligence whatsoever, u have a clear edge over the retards who play these stocks

  • http://test.timothysykes.com Timothy Sykes

    the upper limit depends on how many plays there are and no 100% returns are not for skilled people, thats worst case scenario, if u have any intelligence whatsoever, u have a clear edge over the retards who play these stocks

  • Double D

    Thanks for replying! A quick follow-up question:

    Let’s assume that on average you’re able to find 2 plays per week – which appears to be roughly what your TIM portfolio does. With that assumption, at what level will the reults taper off?

    And by the way, I understand that this is the best problem one could possibly have when starting with a small account (that is, that the account got TOO big), I’m just curious to know at what point it becomes too difficult to use this strategy solely and expect 100% returns.

  • Double D

    Thanks for replying! A quick follow-up question:

    Let’s assume that on average you’re able to find 2 plays per week – which appears to be roughly what your TIM portfolio does. With that assumption, at what level will the reults taper off?

    And by the way, I understand that this is the best problem one could possibly have when starting with a small account (that is, that the account got TOO big), I’m just curious to know at what point it becomes too difficult to use this strategy solely and expect 100% returns.

  • http://test.timothysykes.com Timothy Sykes

    dont expect any returns, jsut take it one pump at a time, watch my dvd and correct your thinking

  • http://test.timothysykes.com Timothy Sykes

    dont expect any returns, jsut take it one pump at a time, watch my dvd and correct your thinking

  • Double D

    Fair enough, but I’m just curious at what point this strategy runs into declining returns. Since you said it is ideal for small accounts, especially those under $10,000, when is it no longer an ideal strategy? It sounds like it may run into problems at the six-figure mark, is that fair to assume?

  • Double D

    Fair enough, but I’m just curious at what point this strategy runs into declining returns. Since you said it is ideal for small accounts, especially those under $10,000, when is it no longer an ideal strategy? It sounds like it may run into problems at the six-figure mark, is that fair to assume?

  • http://test.timothysykes.com Timothy Sykes

    no try seven figures, much more angles than just what i play

  • http://test.timothysykes.com Timothy Sykes

    no try seven figures, much more angles than just what i play

  • http://test.timothysykes.com Timothy Sykes

    one ideal play like SIL where there are 500,000 shares available to short at $4 and you cover at $2 two days later means you can make $1 million on one good trade

  • http://test.timothysykes.com Timothy Sykes

    one ideal play like SIL where there are 500,000 shares available to short at $4 and you cover at $2 two days later means you can make $1 million on one good trade

  • Double D

    Thank you for clarifying. Of course, I assume you don’t recommend risking your entire portfolio on one trade, but I see your point.

    If I follow, the more cash you have in your portfolio, the more plays you’d need to make, but you could typically run this strategy, exactly as you do with a couple plays a week, with a low- to mid-six-figure portfolio without any real problems, correct?

  • Double D

    Thank you for clarifying. Of course, I assume you don’t recommend risking your entire portfolio on one trade, but I see your point.

    If I follow, the more cash you have in your portfolio, the more plays you’d need to make, but you could typically run this strategy, exactly as you do with a couple plays a week, with a low- to mid-six-figure portfolio without any real problems, correct?

  • AgingteenEL

    That was a great email! Thank you for sharing with us! It really inspires me ’cause i am also a student with a small account and having to deal with the currency conversion ($Cdn to $US), it’s good to know it’s possible.
    Tim, I just started on your book,so far, so good. I like how you keep it “real”!

  • AgingteenEL

    That was a great email! Thank you for sharing with us! It really inspires me ’cause i am also a student with a small account and having to deal with the currency conversion ($Cdn to $US), it’s good to know it’s possible.
    Tim, I just started on your book,so far, so good. I like how you keep it “real”!

  • Spit
  • Spit
  • YoungGunz

    The limit is pretty much dictated by the volume traded in the stocks available that fit into the ideal patterns. once in a while you’ll get a high volume one where if you have a big acct you can still make major money but many others you’re still going to be limited to couple grand profit per trade. if a big acct trader tried to get too large of a position in a low volume stock they will have a hard time getting a fill and a hard time getting back out.

  • YoungGunz

    The limit is pretty much dictated by the volume traded in the stocks available that fit into the ideal patterns. once in a while you’ll get a high volume one where if you have a big acct you can still make major money but many others you’re still going to be limited to couple grand profit per trade. if a big acct trader tried to get too large of a position in a low volume stock they will have a hard time getting a fill and a hard time getting back out.

  • Double D

    It would seem to me that, realistically, you could get to about $200,000 or so and still generate triple-digit returns with this method. Would you agree?

  • Double D

    It would seem to me that, realistically, you could get to about $200,000 or so and still generate triple-digit returns with this method. Would you agree?

  • Muddy

    Dave Spoon,

    I’m not that hard to find!

    http://darksidetrading.blogspot.com/

    Click on “chatroom” to enter….read the chatlogs too…see how I made over 200% on NVD today plus 47% on SIL,87% on DVAX ,50% on VNBC etc.
    All logs timestamped and 250 folks in live chat today…maybe see ya there

  • Muddy

    Dave Spoon,

    I’m not that hard to find!

    http://darksidetrading.blogspot.com/

    Click on “chatroom” to enter….read the chatlogs too…see how I made over 200% on NVD today plus 47% on SIL,87% on DVAX ,50% on VNBC etc.
    All logs timestamped and 250 folks in live chat today…maybe see ya there

  • Tradertomcat

    Don’t forget in Canada they are no daytrading restrictions for accounts under 25K, so anyone can trade everyday!

  • Tradertomcat

    Don’t forget in Canada they are no daytrading restrictions for accounts under 25K, so anyone can trade everyday!

  • codyhof

    yes, as tradertom said i dont have to abide by the daytrading restriction, that is a major thing to note. Really it would only have come into affect on me a couple times but still i could honestly say i would be set back a great deal if i had to think about that all the time.

    this is my email if anyone is curious, my covestor is linked in it check it out!

  • codyhof

    yes, as tradertom said i dont have to abide by the daytrading restriction, that is a major thing to note. Really it would only have come into affect on me a couple times but still i could honestly say i would be set back a great deal if i had to think about that all the time.

    this is my email if anyone is curious, my covestor is linked in it check it out!