Yesterday you read about how at least 3 TIMalert subscribers are on Covestor and how they are doing/what they are ranked…today, get ready to see the kind of emails I get…and how I answer them:
Email #1: The Beginner
Hey Tim I am a college student and I don’t have much money but I want to get started. I am an accounting and finance major so I have a good idea behind the fundamentals of a company, but im looking more towards penny stocks. I understand if you dont get back to me because I am sure you get a ton of e-mails a day, but could you please let me know what I should do to get started?
Thanks,
Thomas
Thomas, screw company fundamentals, Warren Buffet might be good, but he wears old man diapers as his strategy takes decades to really prove itself. If the Mayans are right, we only have 3 years left. You can either check out my book “An American Hedge Fund” which details how I turned $12k into $2 million then lost 1/3 of it by getting off track by trying to be like Warren Buffett and become an investor, which only went to reinforcing my original successful strategy.
If you want to truly understand my strategy, may I suggest my brand new TIMfundamentals Part Deux DVD package, which is 12+ hours of me building 2 daily watchlists, researching all those stocks, going over ideal vs. non-ideal chart patterns, digging into the SEC filings of one trashy company (a week before it collapsed 60%+) and of course several hours of live trading, but most importantly features several guest speakers who trade penny stocks slightly different from me and they are up $250,000+ using their own variations.
Email #2: The Debtor
Tim,
Been following you for months now still learning but not yet profitable. Been trading a lot, probably over 50 trades in 3 months but managed to lose about 1/3 of my 15k account, the majority to 2 very bad trades I was unwilling to give up on. I’ve finally learned how to cut losses.
I’m thinking about using a line of credit solely to get my acct over 25k. I have a very good credit score and history with Bank of America Corporation (BAC). I guess my risk is just the financing fees about $600-$1k APR (which I can close out at any time). I am not a gambler and I think I’ve learned not to be a degenerate trader. I’ve currently got about 5k-3k-4k (a lil over 10k but some equities) spread out over 3 accounts. I am thinking about combining the 3k and the 4k + 25k to TOS and leave the other 5k to get shares for weird stocks Thinkorswim can’t get. I would only be trading my own money, although at Thinkorswim I can trade in effect up to my whole real balance.
I know your thoughts on borrowing money, but the opportunities of not being labeled a PDT seems to make sense. I can make more trades and most importantly, get in and out without having to worry about “missing out”. I want to make smaller more consistent profits rather than trying to nail these $400-$800 dollar trades. I’ve learned that the first 10-20 cents of a breakout are all I should be hoping and I am quick to sell if things go south.
The other major lesson is to stop setting stops at round numbers, the price always drops from say $12 to $11.90 instant 10 cent penalty. I’ve talked this over with people close to me, and they seem to think it makes sense as long as I stay disciplined but I thought I would try to ask the master for his thoughts on this. Thanks for reading and thanks for the awesome picks, 3 for 3 this week.
-Alan C.
Alan, I like the fact that you’ve learned to cut losses, but I would never borrow $ to trade. Trading has some of the worst odds in the world and unless you become one of the few rare profitable traders, you’re not only wasting your money, but your time and interest too.
I know the Pattern Day Trader Rule sucks, look I even did a nasty blog post with cool picture on it a while back when my TIM trading account was stuck under its reign of terror for 9 excruciating months, but I am an experienced and profitable trader so I knew I could breakout above it (and this year I’m up from $40,000 or so to $92,000+)…you are not experienced or proven so why can’t you just take a nice job and make your parents happy?
Email #3: The Promoter
Tim,
I’ve been a pink and bully promoter for 8 years now. We own and operate multi-media PR/IR outlets. Would you like to know when our campaigns start and finish? I bet you there’s a mutually profitable relationship here. Take a look at CGCA, Optex Systems Holdings, Inc. (OPXS) & Green Energy Live, Inc. (GELV). Based on your trading methods there could have been big gains here. Email me back if and when you would like to discuss.
JM
I replied:
Nice, but no thank you…I don’t want to get any info not publicly available, but understand I’m not out to get you guys either–you create soooo many easy plays, I hope you never get shut down…thank you for all that you do and I wish you continued prosperity!
Tim
Posted in Manipulation