Stock Stories: Similar Experiences Abound, Share Yours!
Posted by timothysykes on Thu 26th of Jun, 2008 07:12:39 PM
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Sure my life is an open book, literally: An American Hedge Fund, but we all have interesting stories to tell. Lucky for me my big mouth means I get to hear a lot of ‘em and for that I’m forever thankful>
Here’s the story of one reader whose journey is scary similar to literally thousands of others who’ve contacted me—all made a nice profit on some tiny penny stock/s, naively thought the success would continue, lost it all or a bunch of it all, realized there should be $ to be made from going against the pumps. Sounds like you or somebody you know, right?
And those of you who have already read my book know that’s the basic pattern of my life—I’m just lucky/Forrest Gump enough to have everything aired on hi-def TV (and in 5 and soon to be in 9 countries internationally!) So check out this guy’s story and realize you are not alone…the key is we all continue sharing to help each other learn! You needn’t be afraid any longer…
By the way, in case you’re interested in a bit of background, here’s my story. Feel free to ignore the rest of this if you so desire. I started trading about 3 years ago, and like many, I hit it big with my first trade. Started with $5000 and almost tripled it with one trade (IDWD from .17 to .50, only to watch it then go up to almost $2!) Anyway, I felt like this would be easy, and proceeded to lose ALL of it over the following few months. I tried lots of different strategies, from following pumpers to trying my own methods, and through probably nothing other than luck, was actually able to bounce my account around a bunch and be in the black.
I had always thought it would be great to short these scam Penny Stocks when they get pumped up, but was under the impression that you couldn’t do it as a retail trader (TIMblame: Investopedia as it took THIS blog entry for them to change their definition!). The first time I saw you on WSW talking about shorting promo’d stocks, I screamed to my wife in the other room “Honey, this is what I was telling you I wanted to do!”. She rolled her eyes and continued whatever she was doing. I really enjoyed the show, and still do, even though you don’t seem to like this season.
Anyway, I looked all over but could never find a place that would let you short Penny Stocks . I gave up that dream and went to work on some other ideas that I had. (For example, the program that I wrote to scan for insider transactions which I am up over 50% since December).
I hadn’t even thought of your name in probably over a year, and then a few weeks ago you popped onto the CNEX board to announce your short. I had bought about 3000 shares after the reverse split at between $1 and $1.30, so I was happy to see it spike to $3, but was kinda bummed it had been so badly diluted, and that it was being spammed. When you said you shorted it, I immediately had my interest in shorting renewed, and I followed you to your board to find out where/how you were able to do it. I signed up for TOS as soon as I could, but the money didn’t get into the account until CNEX had run up to $7 and back down to under $3 so I didn’t short (although in retrospect, there was still a lot of meat on that bone since it’s around $1 now).
I obviously signed up for your alerts, and assuming things go okay for this first month, will get the DVD after this month is up (and the annual alerts if you still have the $495 package). I’m excited about this, and also kind of thankful that I did NOT find this out earlier, because I have become a MUCH better trader in the ~3 years since I started, and know better than to just follow blindly, which I would have definitely done in the past. I know which ones I am comfortable playing, and know enough now to not trade just to trade. I think I can do very well combining your strategy with the one that I created. Thank you for the opportunity, and introducing me to TOS.
I’ll probably be at your board fairly regularly from now on, although I probably won’t post all that often.
Take care, and good luck to us both.
-Paul
Great story Paul, thanks for sharing! Anybody else, please send me (send right HERE) short/long stories of your experiences, maybe I’ll feature yours! The key to trading success is through openness and honesty…I hope I’m making that clear
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
Hey all! For those of you who were posting about the SEC PDT rule here it is:
http://www.sec.gov/answers/daytrading.htm
Just thought it would be helpful to post this for anyone who may want to read all the “legal” crap!
nice story… i feel the same way.. just some people dont buy my story.. ummmm (TIM)!!! thanks
Thanks for sharing Paul.
I started trading in 2006 and was forced to quit my personal trading do to the fact that I worked for an RIA (Registered Investment Advisor).
Well finally I am on my own again and started back into it about 2 weeks ago!
I was inspired to get back into it because my wife and I decided to move from Florida to Chicago and it has been painstaking to say the least to find a job.
I am not a high roller or anything, started my account with a little more than $3,000. I did great my first week up over $700 but am down this week over $100! Frickin’ no discipline!!
What a learning process it has been but thanks to TIM and his PennyStocking DVD and book An American Hedge Fund, I have stayed positive and am working 18-19 hours a day doing research and going back over my mistakes as well as my successes! Good student huh TIM!?
All I wanted to say was DON’T give up! If you have a bad day or a string of a few bad trades well, if you read An American Hedge Fund and watched the dvd you will know to STAY IN THE GAME!!
Thanks Tim & to all for the posts!!!
Brickhouse, what is your typical stock finding process like?
Just wanna give a shout out to Tim. I’m not into shorting (yet) but your ideas do provide some insight into the non traditional aspects of trading. Just posted recently about my very first trade experience. I’m right there with Tim when it comes to disclosure and learning from your mistakes. Here’s to more writing and less acting.
Brickhouse or anyone,
What is the restriction on working for an RIA? I have considered working for a group of financial advisors as an office manager (not as an advisor). Would I not be able to trade in my own personal brokerage account?
At this point right now anything ENERGY!
As for working for an RIA, most of them want you to report any outside brokerage / investment relationships for the old insider trading rule. The firm I worked for was publicly traded so I am not sure about your situation Wes.
If you have to go through the whole NASD background check, etc. then chances are you will have to forfeit some of your “freedoms” thanks to the Osama Bin-SEC!
Sorry Jesse, guess I could elaborate a bit on your question.
I am still trying to nail down an exact process but the way I have been doing it is something like this:
1. Start my TOS software, check my day trading power.
2. Run down my watchlist (as a refresher because most of them I have memorized from typing the symbols so much) to see which ones are still in play.
3. Research on any and every site possible for information on the stock(s) I have in play or are considering (mainly TIMalerts or SuperTrades recos).
4. Listen to a bit of Squawk Box just to get an idea of what the “professionals” are blabbing about. Hey oil is up… no sh*t!!!!
5. Check my stocks charts.
6. After market close I usually take an hour to veg and let my mind rest. Then I get back to work researching any stocks I played on the day / week to reflect on any successes and failures. Usually do this until about 11:30 which makes you look forward to the weekend!
Good luck!
I so remember CNEX—- This stock is down to cents. .39 to be exact—— that was an excellent call… whoever played and stuck it out…
YngvaiMalmsteve
June 26th, 2008 at 11:52 pm
Ben,
“I would also agree with you that Mike
Mike_13th
What is the “10/60 cross to long or brokedown…”???
And what significance does the HOD/LOD have on your entry/exit points?