The other day I introduced you to this ex-penny stock promoter who is speaking at my upcoming Vegas conference, today I want you to meet another conference speaker, a student who has turned $13,000 into $684,000 in just over 2 years making him one of my top students….yup, that’s 52x his money.
I for one am SO excited to hear him speak — that presentation is gonna be worth its weight in gold — not to mention the other dozen or so speakers we have as you can see HERE
Another one of my students inspired by Tim’s success interviewed him and Tim was gracious enough to give a few solid tips on the secrets of his success:
Tim has written several blog posts on Tim Grittani HERE and HERE and HERE, a recent college grad that is now making roughly $40,000 a month using Tim’s strategy. You can watch videos of him here and here :
But the really great news is that he will be speaking in Vegas at Tim’s Annual Pennsytocking conference this year! This means that you can ask him, in person, any questions about his strategy you may have and for any pieces of advice. He isn’t the only great speaker on the roster either, this is a true all-star lineup that you do NOT want to miss as you can see HERE
Check out his verified profit chart HERE! I’d say this is a pretty good record.
Grittani’s strategy focuses on pump and dumps, much like the other guru’s on profit.ly. He trades these stocks throughout the various stages of their promotions.
“People attending the conference will learn what I consider to be my ideal trade setups, how I analyze level 2 to determine trend changes, learn which promoters I believe are worth following, and get advice on how to manage/build small accounts,” Grittani told me.
Tim said he decided to speak at the conference this year because he wanted to share his strategy with others.
“I want to give people with small accounts advice on how to most effectively build their accounts and get around obstacles such as the pattern daytrader rule, while also sharing insight into my most successful and consistent strategies.”
One of my favorite guest blog posts for Tim Sykes was one by the trader mentioned above, Tim Grittani.
In this post, he outlined 10 pieces of advice for his fellow traders. After reading these bullet points, you’ll realize how important it is for you to be in Vegas this year.
1. Don’t Be a Sheep.
This applies not just to trading pump and dumps, but to following Tim’s alerts as well. Just as you shouldn’t buy into a pump because it has a good story, you shouldn’t buy into a stock just because Tim alerts it as one of his trades. Rather, you should focus on Tim’s reasoning behind the trade. Why is this a good opportunity? Why did Tim pick the entry point that he did? Of course, if you watch Tim’s video lessons he makes after each trade or attend his webinars, these answers become much easier to identify as he lays it all out for you.
2. Get the Right Brokers.
This one seems so obvious, yet I’m always surprised at how many people seem clueless in this area despite how many times Tim posts it. I personally believe there are four brokers worth using. For buying pumps or OTC stocks, use either Speedtrader (USA). For shorting stocks, the BEST two brokers are Interactive Brokers and Tim’s special high net worth broker (contact Tim HERE for a personal introduction if you have over $30,000).
3. Find Your Niche
In my early months as a trader, I experimented with buying pumps, shorting pumps, trading nasdaqs with momentum, and even buying earnings winners. I traded with small size during this time, because I didn’t want to blow up my account, but also I wanted to figure out what strategy I was most comfortable with and what I could profit the most from.
Ultimately, I settled on buying pumps. I was successful with this strategy because I then spent months learning everything I could about this one unique area, how to get early entries, how to best buy breakouts, I watched all of Tim’s video lessons about longing pumps, I even tracked the performance of different promoters on a spreadsheet and saved charts to refer back to later.
4. Cut Losses Fast
If you’re looking for a specific trading tip, this one is the most important by far. No matter what you’re trading, you have to be willing to admit you’re wrong sometimes and take a quick loss. Letting losses spiral out of control is the quickest and easiest way to take yourself out of the game, especially if you like buying pumps. In the end, your one and only concern has to be sticking to your rules and protecting your account, because if you’re trading on a small account all it takes is one bad mistake to wipe you out.
5. Get Level 2
I traded my first four months without a level 2 feed, and looking back on that time now I can honestly say that it was like trading blind. While it isn’t quite as helpful with Nasdaqs as it is with OTCs, it still holds quite a bit of value in my opinion. Get it, learn how to read it (Tim has a great DVD), and use it to your advantage.
6. TRADE SMALL EARLY
I know I kind of covered this earlier, but I want to stress it again as I think it’s a very important point. If you’re just starting, don’t rush into things and don’t put a ton of money on the line looking for immediate returns. I studied video lessons for three months before I even placed my first trade with Tim’s strategy, and I still made all kinds of stupid mistakes when I was getting started. You can watch and prepare and even paper trade all you want before jumping in, but never underestimate the experience factor. You aren’t truly ready until you’ve had some time to trade for real and get some practice in. So when you get started, use small size, get the dumb mistakes out of the way, and learn the subtleties that only experience can teach you. Your trading account will thank you for it in the end.
This January marked the start of my second year of full time trading, and what an incredible month it was. I came into the year with more money in my accounts ($60,000 compared to $20,000 last year), more experience (over 800 trades in 2012), but most importantly more confidence. After $4311 of net profits in January of 2012 my goal to start the year was simple, show improvement by having a better month. When all was said and done, January 2013 turned out to be my most profitable month ever, as I locked in about $26,000 in profits.
Despite my increased experience from last year, I continue to learn new lessons and have important lessons reinforced the more I trade. Here are some of my key takeaways from January, based off of both my successes and failures:
7. Buying pumps early continues to be superior risk/reward:
Getting in quickly on pumps upon announcement continues to be one of my favorite strategies, as well as one of my most profitable ones.
The trade above is an example of a trade I made on new pump announcements, and there were a few of them, between them I made about $8,500 and I don’t think I held any of them longer than 15 minutes. One of the most important things to note with trades like this is you MUST be careful not to chase too much. If you don’t get fills, so be it. Chasing for a fill is not worth the risk of buying the top of a spike right as the stock starts to pull back. I’m aware this strategy lost some favor among people after disastrous picks in 2012 like RAYS, VLNX, VKMD, and SLIO. This brings be on to the next lesson:
8. Take profits into spikes!
Yes, it is always tempting to hold onto a pick in case it’s the next 1000% runner. Sometimes, by selling early you feel like an idiot a couple weeks later as you could have made two or three times as much. But the importance of taking a shorter term approach and protecting yourself is huge. While RAYS, VLNX, VKMD, and SLIO were disasters for most traders, I profited on every single one of those trades, making over $10,000 between the four. I did not suffer an account blowup like so many, I did not find myself down 30%+ wondering what had gone wrong, I locked in my profits into spiking and I protected myself! While my January BDLF trade wasn’t necessarily one people would have been tempted to swing, I sold into spiking when the stock was still strong. I didn’t wait for it to turn around on me, because selling into weakness on these OTC’s makes it very tough to get a timely execution. I will gladly sell out of these picks early and leave potential profits on the table if it means protecting myself from disaster.
9. Breakouts remain a great risk/reward setup
Breakouts were one of the first setups I made sure to learn when I first started trading.
10. Don’t trade off of emotions!
Every now and then, I need a trade to smack me around to remind me of this. Capstone had just gone out of business, and the replacement broker I had chosen couldn’t accept Illinois residents for the time being because they weren’t properly registered with the state. After a week of not being able to short sell (and missing some great opportunities).
My eagerness to trade outweighed my willingness to truly evaluate the situation, and I started into my short position WAY too soon and having to do damage control rather than exploiting a great opportunity (I was down $1500 at one point on this trade). Had I been patient and traded with my head, I could have made a killing on this short. Instead, I traded with my heart, letting my emotions and desire to make something happen take over.
Like I said, that was a great blog post by Tim Grittani…remember to email email@example.com if you want to attend the 6th annual PennyStocking conference October 12-14, 2013 either in person at the Hard Rock Hotel or online via HD-Livestram.