Why PennyStocking Is Not An Optional Course, It’s Required
Posted by timothysykes on Thu 8th of May, 2008 12:29:41 PM
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You know why I’m always promoting my 6-hour PennyStocking instructional DVD package? (See the first independent thorough review HERE) It’s definitely not about the money—not yet anyway—it’s to help teach you guys the rules of trading Penny Stocks that I’ve learned the hard way over the past 9 years. I’m giving you my battle-tested rules of engagement that I wish someone had given me when I first started or even now cuz anyone with a decade of market dominating success is someone worth listening to and learning from.
Don’t say you’re gonna dip your toe in Penny Stocks and make some amateur error, writing it off as “why Penny Stocks are like gambling” or how it’s “part of your penny stock education”. my dvd is your tuition—I should probly get it accredited or something—not the more expensive stupid trading losses!
You want some examples? Fine, I’ve got plenty of them (people, I’m gonna use your comments not to be mean but to make examples out of you…it’s not like any of you use your full name anyway!)
First that comes to mind is Wes shorting SIX after a morning panic 10% drop. Stupid stupid stupid…even though I occasionally short in morning, I don’t recommend it—there’s too many spikes, the afternoon is usually much more gradual. And, even when I do short, I short looking for that morning panic, NEVER after it!
As for shorting IAR, NLS, VNDA or SIX—I’ve repeatedly said I don’t short earnings plays and there is a reason why I avoid them. Cuz earnings plays actually DO deserve to surge higher cuz the company is doing well—or at least that’s the perception. While they could very dip—as they sometimes do—the odds of a big drop are miniscule, so with my poor timing skills—which you probly have too—there’s no reason to even consider shorting them. I post them on my watchlist as potential buys only. Stick to shorting failing companies, frauds and pump and dumps, then you have the odds on your side!
Whoever just shorted VRML at 3.50—that was just a stupid entry…in the 3.70s or 3.80s, at least you still had a chance to get some nice space between you and the support at 3.45, but if you’re betting it goes negative on the day, there’s no point in shorting that close to support until that support cracks—ideally you short, making it crack…tough lesson for people to learn that sometimes its better to short at a lower price or not at all…sure, it still looks good, but now its just a waiting game.
With today’s VRML’s 10% drop off its morning highs, whether or not I’ve screwed up or there weren’t share available to short, I’m now 4 for 4 in my calls in the last 4 days:
LGDI 10% morning drop on Monday
VRML Tuesday morning squeeze from $4 to $5, big 30% drop off from $5
Shorting into VRML’s Wednesday strength for a solid 15% price drop, which I posted play-by-play HERE, HERE and HERE
Basically, there is a high degree of predictability down here with the gutter stocks, buuuuut only in certain cases so you must learn about the variables so you can adapt to profit from those worthy opportunities. That is what my dvd focuses on, the variables that align to create these patterns, then I detail dozens of charts, then I share trading lessons learned. It’s elementary, but simple works best in this niche.
I’ve worked my ass off creating these products to give you a foundation off which to build so no, I’m not your normal patient polite trading coach cuz I have something that is unique, something that really works. Ask any of those polite professional “experts” to blog every second, answer questions and face up to all criticisms. They won’t. They can’t. they are snake oil selling scum. Advantage Sykes.
Below is a small clip…PS to all of you guys emailing me, don’t add to the clutter that is my email box with some whiny emails asking why I haven’t gotten back to you, I’m friggin 2 weeks behind cuz only a few of you are using the FORUMS like I asked!
Check out my brand new DVD, ShortStocking - the only guide you'll ever need to profit from short selling!
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TIM Trades
View All| Date | Stock | Buy | Sell | Net |
|---|---|---|---|---|
| Nov 20 | STXS | $3.21 | $3.48 | $813 |
| Nov 18 | PERY | $4.68 | $5.00 | $640 |
| Nov 11 | IIJI | $2.79 | $2.95 | $442 |
| Nov 6 | CVI | $4.42 | $4.70 | $530 |
| Nov 5 | MECA | $3.68 | $3.95 | $490 |
| Nov 4 | CVI | $5.18 | $4.94 | $472 |
| Nov 4 | CVI | $4.83 | $5.01 | $333 |
| Nov 3 | NAK | $3.30 | $3.37 | $157 |
| Oct 31 | IDAE | $2.18 | $2.18 | $20 |
| Oct 30 | HSNI | $7.37 | $7.86 | $561 |
| Oct 29 | EVC | $1.97 | $2.70 | $1439 |
| Oct 28 | HSNI | $6.92 | $7.30 | $540 |
| Oct 28 | HSNI | $6.20 | $6.00 | $320 |
Total: $35,854 (189%)
All good points Tim. Well done.
Something I’ve found that helps me is to make a list of rules and WRITE THEM DOWN. Then whenever you’re about to enter a trade, make sure the trade fits within those rules. If it doesn’t, then it may be a trade that’s better avoided. This can help establish discipline.
Waiting on taxes to come in - first purchase: DVD
Yngvai, yeah I actually rewatch my DVd cuz it includes all my points!
VRML is showing nice nice action, wall of sellers now at $3.70, pushing down on the buyers in the $3.50s…$3.40 is still cracking point, dont know if it’ll happen today, tomorrow or next week, but I mean where’s it gonna go? Barring miraculous FDA news, volue’s fading, sellers gonna keep getting more confident, buyers–whoever’s crazy enough to buy a stock up 350%+ on no news–should weaken and eventually panic should set in
I’m going through the blog and copy/pasting the important stuff, in addition to my notes from the dvd. There are a lot of “gotchas” to look out for, and I’m using paper money on TOS until I understand what’s going on. The only problem is I can’t reserve shares :)
Good points all. My entry into VRML sucked (I didn’t realize just how close to support I was), but my exit was a total accident. I had a stop limit placed with an activation of 3.70. The order right before mine (according to my last sale indicator) was only 3.679.. How the hell it triggered my stop I have no idea.. It was still much lower then I should have set it, but I really expected to have time to adjust it..
Here’s a useful quote:
“Anytime you find yourself hoping in this business, the odds are that you are on the wrong path — or that you did something stupid that needs to be corrected”
- Richard Russell
Yngvai, do you keep a trading journal?
No, I currently don’t keep a journal. I just modify and update my rules list as I make mistakes, perfecting my own rules.
can u guys see this post okay, some people apparently had errors so we fixed it a bit
dsti…breakout inverse head and shoulders
I was one of the people that reported the error, it looks fine now.
Short Squeeeeze is on with CTDC
Tim, at the end of your post you say “Below is a small clip
nah took out the utube clip cuz it was havng problems
What a hideous spread on VRML, there is almost a .20 cent difference between the bid and ask.
Tony, where do you see DSTI going from here?
Anyone looking at CTDC?
yah ctdc is a great pennystocking play, i have no trades today so its out of the question :(
I see ya Timmay..
Surprisingly my short at $3.7 was part-filled for 633 shares. That probably means this stock is about to go through the roof!
tony, never trust a solar breakout, as csiq, solf, akns have taught us
ENT - breaking $3 pivotal point. Keep an eye out.
Tim, on ctdc, when would you see the ‘whites of their eyes’ in that play?
Tim, CTDC would make a great lesson on why you do not short after the move.
Page is working for me now.
I wasn’t shorting it, I took a small long position when it dipped at 6.20
Just to be clear, the company is a POS.
GPCB…. make a few centz on that, wasn’t worth my time, as it was slow like a turtle. SWS was a nice uptrend stock, I got into very late, but still made $109…
I’m out of CTDC, didn’t make much. TOS says it’s hard to borrow, oh well.
SUNV, time to short again?
I checked with TOS again (that chat feature is awesome), they have at least 1K available. I haven’t funded my TOS account yet so I can’t trade.
I wish you all the best of luck though.
THINK OR SWIM doesn’t have any the stocks we want to borrow. What are we gonna do?
CTDC looks like it’s going to be a nice one
Advantage sykes haha. u having flashbacks to ur state championship high school tennis days???
I wouldn’t short it here (only the second day up, another 500K shares still short), the squeeze will continue and there is not telling how high it will go.
The veteran traders know this but I worry about the rookies.
Would like others opinion on SUNV… it feels like this pump hasnt slowed down.
ENT - going higher
Is ASIA doin a cup and handle breakout like it did several days ago? around
I reserved 50 shares of CTDC at $11 LIMIT so it won’t execute, then made it GTC so I’ll have it tomorrow. Can’t take a bigger position because of my limited buying power. Buying power should be better over the next few days so I’ll add to my position if things look promising.
Think of Swim Suuuuuuuuuuuuuuuuucks!
Yeah, Goose, I’m long ENT right now and making a nice gain on it
Think OR Swim I mean. (Just wanna make it clear who I’m talking about)
50 shares…You should be paper trading for now…commissions are gonna kill you, and I’m pretty sure you can’t hold reserved shares overnight, even if you have a GTC order working at TOS. You have to use them in the day you reserved them or reserve them again the next morning.
Hey Tim, a new version of Wordpress is available…your website wanted me to tell you :P
Why do they suck Mark? Be specific
LOL classic pumper tricks on VRML, faking big buy order, trying to squeeze shorts, then in 1 big order take out all the buyers, just as we did at $3.60, then buy 100 shares back at $3.80…friggin amateurs!
CTDc, i wouldnt short anytime soon
VSCI - does a flag pattern mean anything intra-day?
Hey, Davey, thanks. I didn’t know you can’t hold shares overnight.
I only have a $2500 account right now, and was looking for a potential $1 drop. That would still be a $40 profit after commissions, a 2% return on my total account.
I’ll cancel the order and try in the morning. Buying power for me will much be better tomorrow anyway so I’ll be able to reserve a much bigger chunk of shares.
yes, ENT and GTXO had a nice run up today…unfortunately, for me only on WSS.