Blog Archives:
What To Do If The Terrorist SEC Cell Bans Short Selling Altogether?
Posted by Timothy Sykes on Mon 22nd of Sep, 2008 01:48:42 PM
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Sure, it could easily happen–when you have gross misunderstanding of how an industry works, easy irrelevant scapegoats and you give this kind of influence to such ignorance/incompetence, anything’s possible. Hell, Australia just banned it so why not the US. Throw another short on the barbie!
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How Grad Student Tony Ellis Made $6,500 Overnight & Is Now Up $85,000 In 7 Months!
Posted by timothysykes on Thu 26th of Jun, 2008 11:27:00 AM Sponsor Offer:
Sure, it’s amazing that Tony Ellis turned $80k into $130k in 6 months, it’s amazing that his two worst trades weren’t even losses (he simply failed to take profits properly aka a good problem to have), it’s even more amazing that now he’s now given me PDF file that says his gains have now surpassed $85,000 (friggin’ awesome!), but what’s most amazing is his trading education and success is directly due to my instructional DVD PennyStocking Package (which comes with a 220-page instruction manual and an autographed copy of my book An American Hedge Fund). This ain’t no ad, it ain’t no scam, it’s proof positive my trading theories work.
This latest post is all Tony Ellis, who had the balls to buy a Supernova breakout (a chart pattern detailed at length on the DVD), even though it seems crazy and even I missed it (I was at a FOX interview…tough life!). And Tony wasn’t the only one….BJPN, himself another PennyStocking DVD student, also profited nicely, basically paying for the DVD in one trade—and judging by his $ profit, his account isn’t more than a few grand:
Bought pdo yesterday afterhours @37.5, sold half this morning @41.15 and the other half @41.89, at exactly 9:30:00 according to my trade log! Must have been a ton of buyers because I set to sell them all at limit price=41.05! $258 profit. I showed everyone at work my trade confirmation on my phone!
OK, enough promo/pride from me (c’mon, if your $300 DVD package was now responsible for hundreds of thousands of dollars in gains for others (remember Mike the machinist…I’m claiming responsibility for half his $300,000 gains!), wouldn’t you be a little proud too?), take it away Tony:
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Short Selling Games: How To & Not To Short A Morning Spike
Posted by timothysykes on Wed 25th of Jun, 2008 12:41:30 PM Sponsor Offer:
Each of the past two mornings, I’ve shorted Uranium Resources, Inc. (URRE)—mainly cuz it’s up so much and its horrendous long-term chart and level 2 price action tells me there’s a ton of bitter shareholders looking to sell on these bounces. This 100% stock price spike naturally has brought in the short sellers, many of whom are complete morons, thinking it’s gonna collapse at any moment and I gotta thank God for their existence cuz their premature entry and inevitable squeezing is what causes these morning spikes.
Yesterday, I wisely waited for a nice wall of sellers to enter—meaning there was plenty of overhead resistance, even during the spike, shorting 1,500 at $4.05—even though it was off the day high by 20 cents…I wanted 30 cents of downside and got some of it, but when buyers seemed determined in the $3.85 range, I said to my self “can’t be greedy, this isn’t an I deal play” (it wasn’t negative on the day nor the afternoon). Covering at $3.90 it was a decent $200 gain.
Today, I got greedy.
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One Of The Worst Trades Of My Life & Still A Solid Profit: Behold PennyStocking!
Posted by timothysykes on Thu 12th of Jun, 2008 12:24:06 PM Sponsor Offer:
You know how I always say wait for ideal opportunities? Well today was one and while I made $700, I screwed it up completely—latest proof that if u stick to these kinds of plays, its sooooooooo tough not to make money:
When a piece-of-cow-dung-type company (just look at the chart, little research other than that needed) like South Texas Oil Company (STXX) spikes up…for any reason…you gotta get interested in shorting it. When similarly foul smelling stock promoter Lebed is involved, the BullShitometer goes off the charts and you just gotta reserve shares ASAP
Well that was the thinking that made me short 1000 shares of this stock yesterday at $4—mistakenly believing I got a good execution since the volume was pathetic and the bid was $3.40, I figured I’d scalp it for an easy 30-50 cents/share…unfortunately, the bid caught up and shorts like me got squeezed to the $4.50 range (thankfully the company is so bad, even stock promotion couldn’t get it up much more than that!). Displaying some newfound patience/conservatism, I controlled my losses and covered at an average of $4.22, a $250 loss, but not bad considering my impatience/stupidity at getting in in the first place (I love how several PennyStocking DVD students commented/emailed/IMed me I was wrong for getting in—at least I’m a good teacher!)
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The Dangers Of Shorting Hot Oil Stocks With Absurd SEC Rules, A Lack Of Discipline & A Tiny Account
Posted by timothysykes on Wed 21st of May, 2008 04:34:42 PM Sponsor Offer:
That title is just about the worst combo there is and yet I went full steam ahead, shorting 1,000 FPP five minutes after the market open into a spike I thought to be ill-fated. Nearly right away when I was down 20 cents on my position, I knew I’d screwed up. Despite my warning everyone about the dangers of shorting these rocketships before they go red and the fact that I made the exact same mistake just two days ago, I even refused to take a $150 profit, instead wanting more, almost inevitably getting squeezed for a $600 loss.
I guess it’s true what they say, you can’t t each a greedy Jew new tricks.
I explained my rational for breaking the very rulesI created to protect myself the other day—not that its much of an excuse—and today was no different, except FPP was double the price and I got squeezed for double, 50 cent/share as opposed to 25, too. Fitting, right? Again, I was right about the morning pullback after the spike, it just happened $1 higher than my entry!
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17 Hot Energy Stocks aka Soon To Be Great Short Selling Plays
Posted by timothysykes on Wed 21st of May, 2008 08:34:36 AM Sponsor Offer:
PennyStocking DVD students understand worthy trading opportunities only come about every so often—all the normal daily stuff is just too random/unpredictable—so by focusing on these few truly predictable situations, your profitability increases exponentially. If you can keep a cool head when everyone else is going crazy around you, this game gets much easier…that’s right, you 90% of trader losers out there, now is the time to try to recoup your horrific losses! (I’m talking to you, you sad little ETers)
I’ve been posting about PDO, MXC and FPP the past few days—even taking quick losses totaling $400 shorting FPP and MXC too early (wisely as it turned out, as those losses would now be pushing $5,000!! Uhh yeah $5k in gains from the long side, if I had any talent whatsoever doing that, which I don’t)—but only after we’ve gotten 3 strong up days are they prime for potentially predictable reversals, the extent of which we’ll have to wait and see…by now you guys should know the signs fo what to look for.
Since we’ll surely be missing them when they’re gone soon, I gotta link to every other site that’s featuring them HERE, HERE and HERE.
MXC ($10 to $43 vertical action, but its got some fluffy news)
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Don’t Short Sell Into Sideways Price Action Of Stocks That Are Still Up Big On The Day!
Posted by timothysykes on Tue 20th of May, 2008 03:12:59 PM Sponsor Offer:
Lots of folks either have shorted or are thinking of shorting confirmed Supernova MXC here just above $40. Their reasoning—it cracked sideways price action, mistakenly believing it to be the kind of price action I always—or at least should always—look for before short selling one of these rocket ships.
WRONG!
My kind of sideways price action can NEVER occur when a stock like MXC is still up $13/share on the day, or on FPP yesterday when it was up $1.50/share, because the longs have no fear when their stocks are solidly up on the day and that opens to the door to potential end of the day and tomorrow morning at the market open short squeezes. Because they know lots of short sellers are salivating to short these things, just as they were on MXC at $15, $20, $25, $27 (me, but I covered quickly for a-now-proven-to-be-infinitely-wise 40 cent/share loss), and on FPP at $4 (me, covered again, wisely now it seems for a 20 cent/share loss) on and on….
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My Latest AOL Finance Article, Some Seriously Good Advice
Posted by timothysykes on Mon 19th of May, 2008 02:47:53 PM Sponsor Offer:
You Can check it out right HERE
This was written last night and I basically nailed all the top percentage gainers today….too bad AOL didn’t publish it until 1pm, but that’s what I get for submitting a 2am article on a Monday as it’s there busiest day…
Best/most useful quote form the article:
For now, let these kids play-some are even good to play form the long side, if you’re willing to take on that kind of risk (not me!). Call them in from recess-or short sell them-only when it begins to get dark outside
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10 Stocks In Play: Where Do You Fit Into The PennyStocking Spectrum?
Posted by timothysykes on Tue 13th of May, 2008 08:05:09 AM Sponsor Offer:
Remember: just cuz I suck at buying breakouts—patience and actually being around to buy-wise—doesn’t mean you’re gonna suck at it too. It’s much much much easier to buy these suckers on the way up than is it to short sell cuz it’s more fun to party than it is to inform everyone that the bar is closing and that the strippers all have STDs….that’s basically what it’s like to short these dirty scummy stocks. Below you see a wide range of PennyStocking patterns from which you could and should profit…really just gotta get grounded in my DVD course so you can understand all the variables at work so you can adapt to all the evolving patterns…obviously.
LGDI
VRML
Plummeted bigtime/nicely…despite my $1,000+ in gains between LGDI and VRML, holding one week longer coulda woulda shoulda been an extra $3,000 in profits at yesterday’s closing prices! Are you beginning to understand that as long as you short these turds just as their absurd Supernova buying firestorms appear to fade, even just a little bit, there’s a whole lot of $ to be made? (and despite my 56% return over the past 6 months, anybody who has a decent grounding in PennyStocking could should would be up 100%+ (See TIM results and Supernova slide above to better understand)
NNVC
PSTI
Already began to fade…missed NNVC, thanks a lot Chuckieeeeeeeeee, PSTI so gradual, anybody find any shares to short?
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Controlling A Stupid Trading Mistake Means An Opportunity Lost
Posted by timothysykes on Tue 6th of May, 2008 08:47:26 PM Sponsor Offer:
Despite my rather long list of potential plays I posted this morning, I had two clear favorites—LGDI and VRML—two sketchy and failing, respectively, penny stocks that were up in excess of 100% over the past few days on fluffy news, a contract and a poorly researched NBC video claiming this near bankrupt company was gonna cure Ovarian Cancer (seriously, I can’t make this junk up), respectively again. So, at 7am (early bird gets the worm), I dutifully reserved 2,000 shares of each stock to short—as both were hard-to-borrow—putting my limit orders waaaaay above (or as high as my buying power would let me) their current price, LGDI at $5.49 and VRML at $3.99, intent on ratcheting the down if and when I wanted to short.
Fearful of a large VRML price surge, I commented on my blog post at 9:36am “cancelled my VRML order, not enough buying power to worry about it executing” and focused on LGDI—as it was weak the day before. Tried shorting my 2,000 shares right near its weak open at $4.35, but didn’t get executed…it quickly dropped to $4.10ish, but I didn’t want to chase it…fearful of a morning fakeout (proven correct over the rest of the day—good avoidance)
Next up was VRML, which was spiking from $3 to $4.75…I posted “VRML sooo thinly traded, let it run, I still have my shares borrowed for the day, just in no rush to use em” Whew, glad I canceled my short at $3.99, as I celebrated in a post at 10:05am. Still, at $4.25, everybody is talking about shorting it, so I post THESE rules about patience
But now at 11am, I figure it’d be good to re-enter my short, so I login…wait a minute—WTF, my short had executed at $3.99?!?!?! I posted my disbelief as I chatted with Thinkorswim to see if there was anything that could be done about this error.
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Why Dennis Gartman Is A Classy Pump And Dumper & Some Other Hot Stocks
Posted by timothysykes on Thu 1st of May, 2008 09:22:51 AM Sponsor Offer:
COIN
Yup, that old “classy” pump and dumper Dennis Gartman is at it again—re-adding this company with ZERO revenues (and even though they have PRs for everything including partnering with charities but can’t seem to find the time to put out ANY quarterly earnings PRs!)….last time he recommended this in Barorns right around the same price, the stock spiked and he admittedly sold into that strength, c’mon Garty, do your little song and dance routine again so you can pump and dump one more time! (SEC: I gotta remind you underpaid overworked fellas that original Barrons article was such a blatant case of stock manipulation—COIN was the only stock under $1 billion in marketcap). At least true bottom of the barrel penny pumpers don’t hide what they really are—they know they are scum—Gartman does—that makes him a typical industry villain!
Shorts don’t even think about it yet, yes, you might be able to scalp it, but never underestimate a scam of a company whose charts has now determinedly bottomed at $8 and $9…just not much downside here…short-term at least
BSHF
Totally screwed this one up yesterday, went short into a morning dip, looking for an outright panic, didn’t get it, 2 hours too early, seriously, so close, covered for a $90 loss…detailed post coming…when you know you have a busy day, just don’t trade—99 times out of 100, trading takes priority, but since launching this new site today was non-negotiable (and as you can see we’ve still got a ton of bugs to work out), wasting a day watching this stock wasn’t an option…stupid trade, even if it is a great example of how well shorting spa stocks works
PWSV
A spam stock breaking out higher…great example of why I take my profits quickly and don’t stick around to wait for hte FBI to bust in (they’re slow)
VM
To prevent me from trading—yes, it really is that much of an addiction—I turned my trading software off yesterday afternoon, missing this stunning beauty of fader…never say my readers ain’t smart, resident wise ass Ben Bien nailed this in the TIMforums before it dropped big–too bad he didn’t have a Thinkorswim account to short it though! Brand the chart below into your brains. Summary: solid multi-day runner, big-time short squeeze/rumors yesterday, you wanna short when that squeeze starts to fade (although I don’t like rumor stocks), in the afternoon when it cracks the $4.60 range
LNG
Another stock I missed rolling over, over the painnnnnnnnn
GST
Strong little sucker, remember, don’t even think about shorting until you see the whites of their eyes!
CDY
Spiked a few weeks ago, retraced, now it’s spiking even higher…gotta be careful with these, already sucked/squeezed a few short sellers out there
KTCC
Up on strong earnings, sure there might be some retracing going on, but I don’t short small stocks that put up big earnings, obviously the odds of giant success are still against them, but they’re putting up a good fight
A Decent Profit From The Airport Lounge, Now I’m Up 50% In 6 Months, Jewww Yahhh!
Posted by timothysykes on Mon 28th of Apr, 2008 04:35:44 PM Sponsor Offer:
First time around shorting sketchy-100-year-old-oil-company-that’s-watched-the-world-go-by PDO, I barely made anything before it spiked hardcore and proved itself to be a full fledged Supernova, squeezing those stubborn short sellers who didn’t purchase my instructional DVD PennyStocking (or else they’d have cut their losses quickly) and putting the stock on my back burner as a potential short. So why today—when I knew I’d be hopping all over the place on planes, trains and automobiles during market hours—would I look to trade this sucker?
Simple: cuz I’ve got years of experience trading while traveling and considering this is the 3rd day short-squeeze-induced runup inside of a larger 8-day commodity-related runup, the odds favored an intraday breakdown of some kind—large or small would be determined by stop losses, fear, commodity prices and volume.
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Parabolic Stock Chart Of The Day: Unisource Energy Corp (UNS)
Posted by timothysykes on Thu 24th of Apr, 2008 12:39:15 PM Sponsor Offer:
Overworked as I’ve become, I really appreciate it when you readers alert me to some solid opportunities. Today’s chart of the day comes courtesy of InvestorsLive (see MarketKid, that’s how you link when you feature someone else’s idea on your blog!)
Rather expensive, fundamentally sound, tied to commodity prices and slow moving for TIM to play, nonetheless, I consider all surging stocks as potential shorts…just gotta be extra careful on this one as its managed to take out 9-month resistance, then again, it has gone parabolic so we could see some conso0lidation soon…
How To Short Sell aka What Is Short Selling
Posted by timothysykes on Sun 20th of Apr, 2008 06:09:26 PM Sponsor Offer:
With all the time I spend scouring the landscape for ideal trades, preaching against random market noise and for disciplined trading, I often forget to explain the bare bones basics. Starting now, this will change—every few days I’ll have a detailed lesson. Today, I write about my all-time favorite trading strategy: short selling, which involves betting on a drop in an investment’s prices.
So, how does this backwards-sounding strategy work? Ever hear the saying “don’t sell yourself short”? That means don’t believe you can’t succeed at something. Well, in short selling, that’s exactly what you’re doing—betting that xyz investment won’t succeed at increasing in value. Whether you’re betting against a stock, currency or commodity, you’re “selling that investment short.”
Short selling is exactly like buying and selling the way that you’re only too familiar with except the order is reversed—you sell before you buy. The old adage “buy low, sell high” still applies, here it’s just “sell high, buy low”. What’s worked for me is to short sell when a stock goes up waaaaay too high waaaay too quickly on waaaay meaningless news and buy it back when reason pushes prices lower, back to reality.
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How To Predict 10% Daily Price Moves With Relative Ease: PennyStocking!
Posted by Timothy Sykes on Mon 7th of Apr, 2008 06:11:37 PM Sponsor Offer:
Some will argue that my top 3 weekend stocks to watch moving 10%+ in the direction I thought they would proves nothing. After all, maybe my blog is simply popular enough to help these patterns become a self-fulfilling prophecy.
But when you throw in a decade of me making millions of dollars off these EXACT kinds of chart patterns, it’s hard not to believe that they are PREDICTABLE! Because they are shining examples of the plays on which my instructional DVD PennyStocking focuses. So just get it so I don’t have to explain/mention as often! That might’ve been rude…whatever, be cheap, sign up to my RSS feed and try to piece everything together.
Enough blabbing, let’s talk shop:
Top Weekend Pick: Short (SYNM)—I’d hope to short into another full day of gains, but the weak open (double top at $1.25ish) coupled with sad volume meant it was gonna tank, either hard or soft, no way of knowing…so when it went negative on the day, taking out big block buys at $1.21 and $1.20 and within seconds it dropped to $1.15, I thought’d I missed it…luckily the optimists bounced it back to $1.20 and I shorted 3,000 shares there around 10am…barely getting all my shares before it fell back to $1.16 x $1.17
Then the real question: could it take out now 2-day support at $1.15…didn’t look good for an hour or so…lots of big buys…but there wasn’t any bouncing higher so I held—not content to make 3-4 cents/share. Right before 11am, $1.15 fell hard, stop losses took out $1.12, then $1.10, then $1.07!!!! Gotta love buying into those automated sell orders, it’s like surfing a wave, covered at $1.07, $370 gain, 11% on my money inside an hour…rest of the day irrelevant, not up enough—nor could I risk my precious day trades—to bet for a fall under $1 although odds are slightly for it. Next!
The Good ‘Ole Potentially Hot Sector Friday Squeeze, Monday Gap Pattern
Posted by Timothy Sykes on Mon 14th of Jan, 2008 10:31:55 AM Sponsor Offer:
If you read my post on my 5 favorite agri plays, you’d know that going into Monday, I was bullish on COIN, SEED and TITN. Was I long any of them—no, that’s a whole different story (discipline problems) and irrelevant to the point I’m trying to make here (because if I were a truly great trader, I’d keep this all to myself and you might or might never learn about this stuff), which is that Monday’s gap ups were PREDICTABLE. The reason being the smallcap hype game (for all my mistakes, this is one of the patterns most responsible for me becoming a millionaire at 22 years old, as outlined in my DVD)
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