Blog Archives:

Why Me Failing At Scuba Diving Teaches You An Important Trading Lesson

Posted by Timothy Sykes on Tue 30th of Sep, 2008 04:12:05 PM

Yup, I couldn’t go scuba diving yesterday afternoon (I’m down in the Florida Keys right now) because I flunked the basic training program in the morning. For some strange reason, I’ve always had issues with putting my head under water so I tried confronting my greatest fear and I failed, big time.

As my girlfriend and the 2 others in our “class” went off scuba diving, I was forced to go snorkeling with the kids and older people. It actually wasn’t so bad after 30 minutes or so–saw lots of cool fish–but I even had problems with it at first!

Weird, I know, but life could be worse.

After my snorkeling, last night I grilled up some lobsters and slept on a hammock on a perfect beach.

So what can this teach you about trading?

1. Don’t be embarrassed –it’s okay to admit defeat! No matter how hard you want something to work out perfectly, sometimes it won’t. Learn from goes wrong, get better and move on.

2. Focus on what you’re good at–if you’re strangely good at short selling like me, focus on it. Don’t let Brig Brother SEC hold you down, it’s a fully useful and important trading strategy. If it’s buying breakouts, you have America on your side, but good luck finding many plays right now!

3. Control your risks and always have an exit strategy–even if I had overcome my fear and gone scuba diving, sooooooooo many things coulda woulda shoulda gone wrong down there, no easy way out, it was not be a good risk-reward situation. Snorkeling fit the bill much better for me.

The Latest Financially Illiterate Financial Journalist, Too Funny…

Posted by Timothy Sykes on Tue 16th of Sep, 2008 03:57:25 PM

Yes, I’m always ragging on financial journalists and no it’s not cuz of my ego, it’s cuz they’re a bunch of friggin morons! People who majored in journalism shouldn’t cover business/finance cuz the rules aren’t the same, companies and people, especially CEOs, management, ANALysts, PR firms and newsletter blatantly lie to try to lure in investors.
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Funny Cartoon On Fannie Mae (NYSE: FNM) And Freddie Mac (NYSE: FRE)

Posted by Timothy Sykes on Sun 7th of Sep, 2008 04:26:51 PM

Thanks to a reader, check it out:
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MarketMania Cage Match: Jim Cramer vs. Ken Heebner

Posted by timothysykes on Wed 9th of Jul, 2008 07:33:25 PM

Unlike most financial freaks, you know I like to stay faaaaaaar away for the economic guessing game, not because I don’t have opinions/do research on consumer spending, oil, housing, etc. but because I don’t pretend to be able to guess the changing time lags associated with pricing these issues into the stock market. Yup, that’s right, there are tons of time lags and we petty humans have no friggin idea.

So, I’ll keep making my pretty non-scalable 7 month 70% returns and let others whose business is scalable guessing games duke it out.

Tonight’s death match is between two “financial experts” who are polar opposites:

“There’s Always A Bull Market Somewhere” Jim Cramer who has suddenly started saying inappropriate/dangerous/emotional stuff like
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Why They Should String Samuel Israel Up On Wall Street With A Note Saying “Fraud Isn’t Painless”

Posted by timothysykes on Thu 3rd of Jul, 2008 11:58:38 AM

Call it tough love. Leave him there long enough so the stench of his rotting corpse (still won’t be as bad as the stench of most living finance peeps—yeahhh can you say $330 billion auction rate securities catastrophe? Fraud lawsuits should be fun/illuminating) will pound home the point that if you cheat people—giving this once great industry a bad name—you will suffer the consequences. And it won’t be painless…Benito Mussolini-and-mistress-together-style:
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How To Be The Tiger Woods Of Trading

Posted by timothysykes on Sat 21st of Jun, 2008 11:12:26 AM

I often get asked how much time should you spend trading/researching? My answer is how badly do you want to win? The more time you spend researching, checking patterns, reviewing trades, reviewing others’ trades—yes, you might have to give up some video game, sports, TV, partying, girl/boyfriend time but sacrifices are necessary…hell I missed my college graduation for a great trade!—the more comfortable you’ll be in your trading because you’ll have seen similar patterns and trades before.

The more comfortable you are, the more time you’re willing to devote to this since you’re enjoying yourself more, the more trades, patterns and variables you see, the better you understand them all, the better you understand your own strengths and weaknesses the better odds you have on each trade, the more profitable you become.

Spending all day, every day, trading, is definitely not the way to get rich, but it will help you
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Say Hello To The Most Popular Member On Covestor: Timmay!

Posted by timothysykes on Fri 20th of Jun, 2008 10:51:27 AM

Covestor: Timmay, are you ready for this, champ?
Timmay: I’ve been ready for this my whole life!
Covestor: Then you take us out of the dark ages.

Many said it couldn’t be done. A trader who focuses on penny stocks? A penny stock day trader? A penny stock day trader whose specialty is short selling? Total niche strategy.

And yet just one day after Covestor opened up to everyone, I am now the most popular trader/investor (see rankings HERE) and by a healthy margin. Disney is even thinking of making a movie based on my life with Jon Favreau as my chubby by lovable best friend Eddie Z.

You can track my trades by following me HERE…usually same day, if not 1 day behind…technology is still new…or get real-time trade alerts, within seconds of my actual executions, emailed to you by signing up HERE

When Covestor called me to honor me with the top spot, I blurted out “I wanna prove to everybody…” but Covestor interrupted and said:
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Can A Book Count As You On Facebook?

Posted by timothysykes on Sat 14th of Jun, 2008 10:49:16 AM

The other day I saw somebody, Liz Panek, tagged a new photo of me on my Facebook profile:

beach-book Can A Book Count As You On Facebook?
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Why The Pattern Day Trader Rule Proves The SEC Rivals Osama Bin Laden In Terrorism

Posted by timothysykes on Wed 4th of Jun, 2008 01:25:35 PM

day_trading_infidels Why The Pattern Day Trader Rule Proves The SEC Rivals Osama Bin Laden In Terrorism

Yup I said it. While making a nice quick 5+% American profit, or $350ish, in an hour on my LGDI trade a few weeks ago, my blood boiled over due to the missed opportunities caused by the SEC’s pattern day trading rule. And while I’ve attacked it in the past, there was no formal summary post that explained all my key points. Considering how many stocks are in play today and the fact that I am forced to ignore 99% of them, it’s time I unleash this fury.

The formal definition of this inane rule is HERE, and once you read it, you’ll begin to understand why I call it the Reign Of Terror Rule. In fact, I’ve got an entire category devoted to it as I’ve documented each and every time it’s interfered with my trading since I began TIM in November 2007.

Basically, if your trading account is below $25,000—as are the accounts of so many poor people out there—you can only day trade (meaning in and out the same day) 4 times per week. If you trade more than that, you get flagged as a pattern day trader and your account gets restricted because you’re considered evil, as most day traders are believed to be. (Yes sometimes you can trade a few more times than that—since its all rather gray area and the brokerage firms themselves despise this rule—but my point is there should be no limits whatsoever!)

Even though I’ve still got over $500,000 in liquid cash to trade with, I went back to my $12,415 roots specifically to draw attention to this injustice because most people, including industry big wigs, don’t even know about it. After all, the last time I had this little money, it hadn’t been instituted and I’m forever thankful since trading freedom allowed me to get rich.
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Forget Barton Biggs, This Is Real World Hedgehogging

Posted by timothysykes on Mon 2nd of Jun, 2008 04:54:21 PM

You probly all have read the decent/above-average/coulda woulda shoulda been a lot more book Hedgehogging by Barton Biggs. Well, now TIMtv has found a video clip that blows that little book away…not only is it more entertaining and eerily representative of those in the hedge fund industry, it’s free and you can watch it right HERE!

Why Getting Hacked, Like Losing Hundreds Of Thousands Of Dollars, Is A Good Thing

Posted by timothysykes on Mon 2nd of Jun, 2008 03:07:53 PM

Yes it’s true, I’ll explain. While I’m a cynical old (in terms of market experience) short seller whose seen frauds, hype and pumping galore and think 99% of Wall Street is full of truly soulless scumbags, I’m also a big believer in learning through mistakes. Just like that time when I lost a few hundred thousand dollars, our Sunday night hack attack by some shady Russian hacker probly hired by a stock promoter I’ve pissed off (I don’t know how considering I have nothing against stock promoters and if they thought about what I’m trying to accomplish, they’d see that making penny stocks more transparent and hence more actively traded will benefit us all) is definitely a set back—all FORUM posts, new subscribers, recent TIMbucks, basically anything that happened on this site from Friday-Sunday has been lost forever.
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We’ve Only Just Begun: A Memorial To BodyTel Scientific, Inc. (BDYT)

Posted by timothysykes on Mon 26th of May, 2008 10:22:45 AM

This Memorial Day we commemorate not only the men and women who perished in service to their country but the pumps and dumps that inevitably perish in service to their manipulators. Each year thousands fall, so let us celebrate the life of the pump known as BDYT, who’d only just begun to blossom, with a song I wrote:

We’ve only just begun to surge,
Stock spam and promises
A check for the promoters and we’re on our way.
And yes, We’ve just begun.

Before the doubters we fly,
So many market makers to choose
We start our upticking and learn to run.
And yes, We’ve just begun.
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Quit Your Whining aka Don’t Worry, Be Happy

Posted by timothysykes on Mon 19th of May, 2008 11:32:09 AM

happyface Quit Your Whining aka Dont Worry, Be Happy

Ask just about anyone how our economy is doing and you’re likely to hear one or more of the following:

We’re in a recession! The stock market is crashing! Oil’s never gonna stop going up, we’ll always need more! Housing’s collapsing so people won’t be able to pay off their debts! Wall Street is laying off drones by the thousands!

Here’s a suggestion: Shut up you whiny little bitches.
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Welcome To The New TimothySykes.com, Kinda Like Super Shredder

Posted by timothysykes on Thu 1st of May, 2008 12:13:53 PM

Welcome to my new website! Check out the official PR…this is three months of hard work baby and its really brought me back to my pyramid-building days…tons of cool features—por ejemplo, click and drag on any of the sections like TIM101 and you can rearrange their position to suit your preferences, vertically—for now

[poll=5]

Understand this is just the ground floor because as you can see, there’s a dozen+ projects goin’ on here, all in an effort to make this stuff more fun, understandable and ultimately help you become more profitable. Over the next few days and weeks, I’ll be going over each new section in detail, but for now, here’s a little breakdown of everything:

Bucks
Rewards for your thoughts—now every time you post or comment you get a TIMbuck, talkin’ with sponsors of all sorts right now, we’ll have a whole list of goodies shortly, wouldn’t it be cool if you post a good pick, and everybody profited and gave you so many TIMbucks that you could cash in your chips to get 50 free trades from GFT? That’s the plan anyway…

101
Where Real Traders Begin—you know all those beginner-type questions? Yah, they all get answered here, got plenty of articles in the works, everything from reading level 2 and my fav. books for beginners to…well, stuff like that…also you can see ALL the details of my trades, good and bad, I wish everybody in this industry would do

Reads
Reading is FUNdamental—bringin’ my whole library back to 1 page, only about a quarter of them on there now, good things take time

Reviews
The toughest critic around—no more 1-2 line answers, name any US stock and I’ll do a full analysis-technical, fundamental and everything else—for $20/ticker, for entertainment purposes only of course (happy you SEC bastards!?!?!), let’s see how this goes

Tv
Real. Fun. Really Funny—just the beginning, got soooo many ideas, just gotta clone myself to find the time to film them all, new clips—not necessarily just me—will be rolled out each day, stuff that’s gonna make you laugh, cry and most importantly, occupy you so you won’t be tempted to trade every damn pattern!

Terms
Nothing but the truth—an accurate financial/trading glossary, not like the one put out by those morons at Investopedia who say it’s impossible to short sell penny stocks and cannot account for my existence or my profits
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My Take On Visa Inc (V) aka Baseball Card Collecting In The 1990s

Posted by timothysykes on Fri 25th of Apr, 2008 08:15:45 AM

No matter how many times I say stick to trades with ideal risk-reward ratios for the smaller investor—those being media-hype plays and pumps and dumps courtesy of your friendly local stock promoter, the questions about random real companies keep streaming in—none moreso than Visa (V). The emails came from far and wide and helped inspire the thesis of THIS AOL article I wrote about the company the morning before its IPO. Yup, I was dead right. So how did I know it’d follow a VMware (VMW)-type trajectory; because simple theories work best.

v My Take On Visa Inc (V) aka Baseball Card Collecting In The 1990s

Think about it, everybody and their other mother is comfortable with the strategy of buy what you know, buy blue-chip companies—blehhhhhhh! The absurd popularity of that strategy makes me gag because while it’s worked well in the past, it’s sooooo old news now. I’ll use the example highlighted in my book An American Hedge Fund by comparing this strategy to baseball card collecting—everybody growing up in the 1980s and 1990s who collected those stupid little pieces of cardboard dreamed of their values soaring into the thousands of dollars, just like those cards from back in the 1950s and 1960s.

Unfortunately, the card companies took advantage of this great track record and us suckers, producing those cards en mass and us kids—ignorant to the laws of supply and demand—bought them en mass, only too happy to pack them away and wait to collect our inevitable rewards.

ballcards My Take On Visa Inc (V) aka Baseball Card Collecting In The 1990s


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Pirates Pretending To Be Pig Farmers (Seriously)

Posted by timothysykes on Wed 23rd of Apr, 2008 09:45:53 AM

piggie Pirates Pretending To Be Pig Farmers (Seriously)

Wow and I thought I liked money—the pig f#@!ers over at Agfeed Industries (FEED) raised another $25mil just 7 days after their first $10 mil plundering financing. The short time span between blatant dilution financings tells us now it’s gonna get interesting, a.) we’re def. gonna see more pig farm acquisitions (no doubt at the typical 2-5x income), which given soaring commodity prices, investors are gonna like (good short-term, but dangerous long-term aka why can they get them so cheap?) and b.) whoever bought these shares is even more motivated to turn this into a Wall Street darling telling clients and paying off/bribing getting others to tell their clients “with the Olympics coming up and food prices soaring, this is how you invest in both trends” (BS generalization).

feed8 Pirates Pretending To Be Pig Farmers (Seriously)

Other than scalping, the rise is too gradual to warrant any shorting and if done right, this could become a great pump and dump story stock, meaning the potential upside is enormous…so respect the pump, buy if it suits your personality, don’t short too soon and never ever believe the hype. When this thing dies down—and it will eventually die, as 995 out of 1,000 piece of poo companies do (seriously)—its chart will resemble similarly flawed fraudulent microcrap lover of acquisitions ZVUE.

TigerLogic (TIGR): The Piece Of Crap Formerly Known As Raining Data (RDTA)

Posted by timothysykes on Sun 20th of Apr, 2008 09:35:11 AM

rdta TigerLogic (TIGR): The Piece Of Crap Formerly Known As Raining Data (RDTA)

Over the weekend, microcrap speculators everywhere have been debating (RDTA). While I wrote about the briefly HERE (Friday morning pre-market…before its 40% surge…thank you, thank you), I was right not to touch it in the morning cuz it was just too illiquid, but ‘twas wrong of me to be neck deep in fundamentally flawed / factually inaccurate but sub-par-chart-play EDEN, failing to see RDTA get pretty damn liquid mid-day after they released this fluffy PR about some crappy revolutionary new web search “add-on” and announcing a name/ticker change to blah bah blah.

Unlike ignorant financial journalists, I’m not even gonna dignify these laughable pieces of s#@! news pieces by detailing their BS contents). Those of you who’ve read my book An American Hedge Fund know these crappy companies loveeee trying to hype themselves with meaningless name changes—no different than adding a “dot com” to the end of their name back in 1999-2000…except now they’re just trying to get prospective suckers investors to forget their stock is 70% off its 2000 highs aka they’ve still got some bitter shareholders.
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Hot Stocks: A Bunch Of Mediocre Wannabes aka Stocks Not Gone Wild

Posted by timothysykes on Fri 18th of Apr, 2008 04:32:13 AM

No ideal trade setups, just getting bored by a bunch of mediocre chicks

mediocre Hot Stocks: A Bunch Of Mediocre Wannabes aka Stocks Not Gone Wild

(GOOG) Great earnings, gotta respect the after-hours stock gains, optimistic people looking for an excuse…but be careful–$200 million in one-time currency gains—without it, wouldn’t be such a blowout…too pricey a stock to matter to TIM, but just be a little weary here.

(FEED) Just cuz I said this is a typical smallcap raising capital at inflated prices, doesn’t mean those inflated prices will deflate anytime soon. Classic finance idiots gotta learn to read—what are you guys a bunch of typically coked out Wall Street ANALysts?—I also explained that whoever bought the $10 million at $16 now has a huuuuge incentive to pump the stock. It’s called a balanced blog post, deal with it suckas!

(MMTIF) Still watching this TRUE pump and dump, again doesn’t mean I’m gonna short it—pump and dumps can last much longer than anyone expects, as (MXFD) shorts have learned the hard way
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The SmallCap Pump & Dump Capital Raising Game: AgFeed Industries Inc. (FEED)

Posted by timothysykes on Thu 17th of Apr, 2008 08:45:08 AM

What’s the ultimate goal of publicly-traded smallcap companies? They sell shares when their stock prices surge to raise the most capital possible. This morning, recent high-flyer Chinese pig-farmer (FEED) did just that, becoming the latest victor in the smallcap pump and dump capital raising game, raising a cool $10 million, selling shares at $16, less than 10% below their closing price of $17.40. What are they gonna do with this newfound capital—buy more pig farms of course!

pump The SmallCap Pump & Dump Capital Raising Game: AgFeed Industries Inc. (FEED)

You can look at this two ways—it’s great for the company that they could raise so much $ at such high prices—usually these financing deals are done at much bigger discounts, think 25%+. The capital gives them a shot at true business glory, even if the odds are still decidedly against them. Then again, it’s dilution below market prices—the rich get special deals—so this stock should open lower as poor people sell their shares—wondering how to buy stock 10% below market prices (hint: you either need to give the company a lot of $ or convince them you and your connections can and will pump up their stock price)

Don’t get me wrong, agri stocks are hot and this is a clear chart breakout so I have only two concerns:
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Did I Do That? Pump & Dump Exposes And Revolutionary Finance Websites

Posted by timothysykes on Tue 15th of Apr, 2008 02:41:01 PM

With my CNOA pump and dump expose last night and it’s 25% tankage today, I gotta wonder:

steve_urkel Did I Do That? Pump & Dump Exposes And Revolutionary Finance Websites

Possibly, probly, who knows…too bad I wasn’t short the stock myself—gotta learn to short sell these suckers BEFORE I chop ‘em to pieces, a la business models of Citron Research and Mark Cuban’s ShareSleuth.com

Nahhhhhhhh a.) it didn’t fit my pattern and b.) it’s more fun to write brutally truthful articles about stocks in which you have no positions, you do it just cuz it’s the right thing to do

I’ll tell you one thing I definitely did do right, that’s hiring and tirelessly working with Pallian to design the new site, which is looking redonkulous! I mean the guy is an Indian Picasso, he should be called Ghandcasso or Picandhi. To you lucky 50, advertisers and bloggers, the beta invites are being emailed out, so def. let me know what you think—what you like and don’t like, the site is for you—and for everyone else, you gotta wait til May 1st and settle for clicking the little thumbnail below:

tim_beta-150x150 Did I Do That? Pump & Dump Exposes And Revolutionary Finance Websites

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Start Here

TIM Trades

View All
Date Stock Buy Sell Net
Oct 10 ISRG $161.23 $174.82 $680
Oct 8 ISRG $187.94 $193.02 $193
Oct 6 FEED $5.42 $5.95 $512
Sept 25 SIL $2.65 $2.98 $640
Sept 25 QCOR $6.98 $7.05 $47

Total: $30,250 (144%)

TIM Alerts

View All
Date Stock Position Ideal Exit % Gain
Oct 6 FEED Buy $6.50 20%
Sept 25 SIL Short $2.60 13%
Sept 25 QCOR Buy $7.15 2%
Sept 24 SIL Short $2.60 26%
Sept 23 MKTY Short $1.65 15%

August: 4 alerts, 19% avg gain

Sept: 10 alerts, 16% avg gain