PennyStocking Profile: Tony Ellis, Grad Student Up $50,000 In 6 Months!
Posted by timothysykes on Tue 17th of Jun, 2008 02:43:34 PM
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Tony Ellis, a graduate student, who says “ I traded before Tim’s book & instructional DVD, but my inspiration came from seeing Tim on WSW. I used O’Neil’s method before and while I made money it was too slow and inconsistent. I had virtually no experience in PennyStocking . Before trading I was a broker at Merrill.”, “Tim’s strategy is like free money. I’ve made tens of thousands of dollars shorting these stocks.” and “I’ve made over 10X DVD cost on NCEN the last week!” has quickly become the greatest student/master of Tim’s strategies, even while going to school!!!!, earning profits like $19,000 on COIN!!!, $6,500 in 1 day, sometimes only $3,500, or $3,800, or sadly only $2,000, but sometimes quickly like $1,200 in 3 minutes…all told, he’s up $50,000+ in the first 6 months of 2008!
Tim had a chance to interview Tony to learn more about his amazing story:
1. What’s your background? Did you trade much before Tim’s DVD?
Graduated from Mississippi State University in 2002 with degree in Professional Golf Management (no bullshit it’s a real major). After college went to work with Dillard’s Inc. as Sales Manager. Then took a job as a broker at Smith Barney and then was recruited to join Merrill Lynch. Left Merrill last July and began trading full time. I also am working on a Master’s in Finance and Economics from the prestigious Else School of Management. My first experiences trading stocks goes back to 1998 while in college. Had no clue what I was doing just buying into the hype and hoping to become rich. Actually had really good returns in 1999 and then lost most by April 2000. Started trading again in 2003 when I started work as a broker. Mostly buy and hold just a few trades per month. Averaged about 20% annually from that time until I started day trading (which is less than the Russell 2000 index). I followed the IBD CANSLIM system up until I found Tim last fall. Way too boring for me, a good stock might move 20% in two months where South Texas Oil Company (STXX) today moved almost 50% in two hours.
2. What are your main strengths and weaknesses as a PennyStocker?
Strengths: Spend extensive time hunting for good stocks to trade. Selling on the way up, covering on the way down and cutting losses quickly. If you sell on the way up and cover on the way down you can never lose money on a trade.
Weakness: Overtrading- ideal trades only occur so often and when you overtrade you are playing less than ideal stocks thus increasing the probability of losses.
3. What’s your ideal trade setup?
Buying breakouts: I look for stocks near 52 wk highs and that have history of greater than 20% intraday gains and are in a hot sector and great hype behind the stock. Selling breakdowns on stocks that are extended 30% or more from next support level on chart. Selling ridiculous spikes on stocks with horribly bearish charts ex. STXX today My absolute favorite trading supernovas- buy when they make new highs or break multiday resistance and sell when breakdown intraday and when they break multiday support. It’s hard to explain without charts. I’ll have to put together a few charts later explain more clearly or you could just buy Tim’s DVD!
4. Walk us through your routine, how many hours/day do you spend trading/researching?
I’m usually up about 3 hours before the market opens scanning news drinking massive amounts of coffee. I check message boards and news wires to see if anything is going on with stocks I’m watching and check a few charts. Then when premarket trading begins I’ll check stocks moving in premarket. During market hours I’m watching the highs/lows list to see if a stock I’m watching is moving. I’ll also check Tim’s blog and thelion.com. I check top % movers continuously throughout the day as well. I look a few charts after the market closes but kind use this time relax and clear my mind. At 9 PM I look at charts on barchart.com for new watchlist ideas. I look at the top 50 stocks between $2 and $5, top 50 between $5 and $10 and top 50 overall. I also look at top 250 volume % increases. Usually I’ll find around 10 to 20 stocks that look interesting and I’ll check the symbols on yahoo and google finance. I look at recent press releases, check earnings calendar, check message board posts and also glance at income statement and balance sheet (Don’t ask me why guess I’m trying to put my business school classes to good use). All together I spend about 4 hours a day outside of trading researching stocks. I could probably condense it into an hour and half because I screw around a lot.
5. What’d u think of the DVD pennystocking?
I don’t think it would be possible to recommend anything more highly. PennyStocking is where all my trading ideas and routines is derived from. It’s an excellent resource for any trader.
Wait til there’s more normal people earning these kinds of gains, as is seemingly inevitable!
Now you can Twitter any questions/comments to TIMhelp and obviously you can follow TIM on twitter too!
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TIM Alerts
View All| Date | Stock | Position | Ideal Exit | % Gain |
|---|---|---|---|---|
| Nov 24 | KVHI | Short | $3.70 | 18% |
| Nov 20 | STSX | Short | $3.10 | 11% |
| Nov 18 | PERY | Short | $3.75 | 25% |
| Nov 11 | IIJI | Short | $2.80 | 5% |
| Nov 6 | CVI | Short | $4 | 15% |
| Nov 5 | MECA | Short | $1.95 | 51% |
| Nov 4 | CVI | Short | $4.81 | 4% |
| Nov 3 | NAK | Short | $3.20 | 5% |
| Oct 29 | EVC | Short | $2 | 26% |
| Oct 28 | HSNI | Short | $6.80 | 7% |
| Oct 28 | HSNI | Short | $5.75 | 4% |
November: 9 alerts, 15% avg gain
October: 11 alerts, 14% avg gain
LOL…I left out all my horrible losses.
Holy cow that’s the most wasp picture I’ve ever seen… guy and his kid with a lacoste polo and a sailboat in the background. Awesome.
Great success. Congrats.
Tony,
Whats was your account balance when you started Pennystocking?
How old’s the kid? How does the wife feel about your trading? Mine hates it, and thinks everything I do is illegal and that I am going to end up in jail…
losses before or after pennystocking…i can always update blog post, i dont want to leave any of the story out
lol… my wife always asks “Did you win?”
I started with 85K. I’m up about 53K ytd.
Nice interview. At the rate you’re going the sailboat behind you will be replaced with a yacht. Just stay away from the mistresses the wifey wouldn’t like that.
That is a cool write up
professional golf management killed me ;)
nice interview, I’ll be up here one day…. hopefully
Missed the breakout of NOEC at 6. Stock historically never can hold a gain. Flirting with six month high of 7. This is a good short at 6.77. I’d cover at 7.
Find an AG stock to short tomorrow morning. You will see a gap open tomorrow in the names then a sell off. This is how previous tops have been confirmed.
MOS, MON, POT. I’m buying PUTs in the big names. Sector is highly overextended. Don’t recommend this strategy as I’m guessing on the top. Sometimes gut and intuition are better than charts. When I see brokers start upgrading these names at 52 week highs that’s a top. Best sector in the market just see a correction happening.
HYHY seems to be breaking out. Tim, since I haven’t bought the DVD yet, is this still one you’d consider shorting, and if so, when? If it hit $2.50 today I was thinking about it, but would I be jumping the gun?
Covered 425 Shares of LEH @ 24.92 - Shorted at 26.16
Not a great entry but I can live with it…
HYHY , Global Energy Investor sent out a huge mailing today. Got about a 4 page pamphlet in the mail. Claiming it could soar over %500 percent. Watch out for a big spike in the next few days and then dump to follow.
Sonid, I may be wrong, but I think that mailer went out at least a few days ago, and that’s why it was mentioned here (and why I’ve been subsequently following it). I agree with your assessment, but I wanted to ask Tim if he had an entry in mind.
bought 2,500 HYHY at 2.26 right before the close…TIMalert subscribers knew, some jumped in…yes its a sketchy paid mailer company, but it closed strong on a nice breakout, should gap 10-15 cents higher and maybe even 25 cents in the first few minutes…squeeze those early shorts.
lesson: never ever short a stock breaking out to new highs on strong volume, wait for the volume to fade and price to crack a support level cuz these things can run faster than u’d ever think
I shorted MENT in the last half-hour today. It gapped way up on a buyout offer, but then the offer was rejected and the price started fading all afternoon. It’s one of those red floaters Mike13th talks about…sitting way, waaayyy outside the upper bollinger band. Good chance of a gap-down or sell-off tomorrow, low risk of squeeze at this point unless some unlikely news comes out tomorrow. My entry was $15.14, it closed just under $15.
Tim,
What made u want to buy into HYHY before it closed? Just trying to learn the ways.
will have detailed post later tonight
Thanks. Workin on buyin your DVD. Want to read a little more about you and 13th’s trading style thou.
Military discount for your DVD Tim?? HAHA
For you penny stock lovers. I have a real penny play. This stock earlier in the month ran from .005 to .12 on high volume in 6 days. A 2400% return. From .12 it came back down to .01. Has bottomed and back up to .02 on high volume. Type of POS you could throw $1K. Definitely not my cup of tea but fun to watch. Wouldn’t doubt it sees $.03 tomorrow based on volume. 52 week high is 1.5. Of course it hardly did any volume at those levels.
Whats the symbol?
Oops. Forgot to put the name up. GLCC.PK
GOOD LIFE CHINA CORPORATION. is that it?
I’m pretty sure if I didn’t have to look over my shoulder half the time, I could be the next Tony Ellis!
Hey Tony, did you read that post where I finally broke down and bought Tim’s DVD? I said that he better write something cool in the cover like: “Jeff You’re the coolest trader on my blog, except for that Tony Ellis guy, he’s the shit! But you’re cool too. - Tim” Well, he did. Congrats, you’re in my book.
Man, those pennies look tempting. But problem is, if you have a small account and you are with TOS, you pay a pretty good commission fee…something like $20 or $40 if you’re getting tens of thousands of shares. Throw the greater risk of loss, and you can get a hefty loss. My biggest loss ever was on MMGP, partly due to commissions…the only time I’ve ever tried to play a true penny stock.
Still tempting though.
Take a look at NUBV. It doubles daily. But with my broker i dont have commission fee per share if its under $1.00
new post:
http://www.timothysykes.com/ti.....edge-fund/
That’s just awesome, Timothy thanks for your wonderful site, very informative and educational. Tony you are just one lucky man to know the SykesMaster. I would say you’ve mastered a cool trading “system” based on pennystocking. Now Tony, you don’t have to work for some lame old broker firms anymore, THEY KNOW NOTHING. Nice to spent more time with the family and enjoy life the way we know it.
YngvaiMalmsteve - in TOS.. I read that you can chose either or for the comm.. if you going to be alot of shares.. you can go with the flat rate $10 before you trade..
yea.. the wife still doesn’t know that I’m down 1.2k from my 4k account.. lol.. the lose was before I found Tim and GOS site..
slowing making my it back.. want to sell my Visa(got it before all this reading). That way I have more cap to trade with.
have to say.. this newbie have learn a few thing.. and being short squeeze is not fun..
TomT,
TOS has a different fee structure for large OTC orders. It’s something like $20 for 20,000 shares, $30 for 30,000, and $40 for 40,000 or more.
I’m doing much better now and making better trades. Went from $4,200 to $2800. Now I’m back to $3100 and going up. Hence why I’m hesitant to get involved in any pink sheeters…I don’t want to screw up my improving stats and gains!
I’ll probably wait until I have a much larger account until I play any of those pink sheeters…then I can put a small amount of my capital towards them and not be as worried about commissions.
YngvaiMalmsteve..
IC.. more small prints to read in these brokers..
how long did it take you get back up to 3100..
I’ve gone from $2800 to $3100 (10% return) in only 6 days.
Currently holding NNVC (long) and MENT (short).
Nice read and article. I love seeing the little guy rise out of the ashes and make a name for himself. Good luck and good trading Mr. Ellis!!
Great story Tim
Hey short sellers, grab Visa for a few days and you’d be up in no time.
why i bought HYHY:
http://www.timothysykes.com/ti.....ed-higher/
Does Tim’s DVD mention newsletters or online publications to subscribe to in order to catch these POS stocks early? I get some POS contrarian newsletter in the mail from that scammer Scott Fraser but I never signed up for it. It is snail mail spam. Scotty boy was pumping Amish Naturals (AMNT.OB). Company stock price has taken a nose dive. I would have shorted it a long time ago but I didn’t know you could short penny stocks.
BTW, I make money “shorting” or going opposite of (also called fading) sports handicappers, especially cappers like Brandon Lang. Most of these “handicappers” are degenerate gamblers who need money so they sell picks that always seem to lose. The general public does not understand this until it is too late. These cappers are not monitored so they make outrageous claims that cannot be verified. I have a made a lot of money going opposite and now I want to re-invest this money. I am tired of watching mutual funds that I cannot touch until age 59 1/2.
Tim, I respect what you do. It kind of reminds me of how I approach sports betting. Use the information and scams against the system….Wall Street….Las Vegas….it is all the same to me.
Very cool interview and an inspiration!
Who will be the next one to be featured here???