This week I’m checking in from Bali where I flew from Turkey. Thank you, Turkish Airlines, for the non-stop flight from Istanbul to Denpasar, Bali. It was a 13-hour flight, but I love no connections when possible.
I’m in Bali doing charity work with members of the Karmagawa team. We just opened four new schools with our favorite local charity — Bali Children’s Project. It’s truly inspiring and such an honor to work with the most amazing people.
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I’m so lucky to be able to travel the world while teaching/trading stocks, and now for the past 3 years it’s been an even greater honor to do charity work in all the places I visit too! The past few days I’ve been in Bali with my @karmagawa charity along with my cofounder @badboi and sone good friends opening up several new schools with our local partner here @balichildrensproject while also meeting so many truly incredible teachers, families and children too! We now have opened 57 Karmagawa schools in 8 countries so far, but our goal is to build 1,000+ schools all over the world so we have our work cut out for us and we’re just getting started. Many people ask why focus so much on school building and education since we’ve donated nearly $3 million to this issue vs. $1 million that we’ve donated to environmental/animal charities? Because as cliche as it sounds, children really are the future and too many problems in third world countries are caused by a lack of awareness about too many issues and effective education, both of which can be fixed with better schooling and optimizing the teaching process with big data and new technology…so while it’s a tall task to be able to provide quality education to remote communities like these, never before have we had so many tools at our disposal to help us achieve our goals so we’re always going to try our best! Thank you to EVERYONE involved in this process, it’s not just about how much money is donated or the construction of the new school buildings themselves, this is truly a team effort, from the parents, teachers and communities supporting the children to great friends, donors and charities all working together to turn the dream of education for all into reality! Let’s keep going and I’d appreciate you sharing this post with your followers and tagging people who need to see it so more people can get involved and help the cause too! #knowledgeispower #karmagawa #studyhard #edjewcation
Check out this sweet video from @Karmagawa. Education is the key to improving the lives of so many children AND our planet.
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We’re opening several new schools in Bali this week with our favorite local charity here @balichildrensproject and this is a beautiful inside look at Day 1 of our trip and the opening of our 55th school from Karmagawa cofounder @badboi as education is the key to improving the life of so many children and our planet too! Our goal is to build 1,000+ schools so we’re just getting started and as you can see these school openings are a big deal to these communities here in Indonesia that have very little so it’s our honor to help them with new schools and libraries that provide these children with the opportunity to have at a better life!
This brings the total number of schools we’ve built to 57. We have several more in development with a goal to open over 1,000 schools.
Someone asked during my last Trading Challenge webinar how long it takes to build one of these schools from the ground up. Every community is different, but keep in mind most are very rural. So the toughest thing is just trying to get supplies to the community. But it usually takes anywhere from three to six months.
To support our efforts and spread the word, buy your Karmagawa merch here. And wear it. Like @MP6Trades…
— MPtrades (@MP6Trades) September 24, 2019
Nice. And now…
Table of Contents
- 1 The Week in Trading
- 2 Questions from Students
- 3 Millionaire Mentor Market Wrap
- 4 What Students Are Saying
The Week in Trading
Whew! Last week was pretty crazy. We saw short-squeezes, supernovas, and sympathy plays. I got messages galore. Too many newbie shorts blew up. Many experienced but stubborn shorts took big losses on stocks like SES and VIVE.
Also, volatility on stocks like BNGO and VIVE was off the charts. On October 16, BNGO was halted 35 times due to volatility.
Trade of the Week
I’ll get into supernovas and sympathy plays more in the questions part of this update. But first…
I want to share a recent trade with you to show two things. One, penny stocks are awesome. Take advantage of my FREE penny stock course here. And two, you truly can trade from anywhere, even when things aren’t perfect, as long as you’re prepared.
Preparation is KEY to success. So you better be studying and prepping for the week as you can REALLY get ahead of lazy people
— Timothy Sykes (@timothysykes) October 21, 2019
ClearSign Combustion Corporation (NASDAQ: CLIR)
On October 18, I dip bought this former supernova premarket off its highs in the $1.70s. I don’t often trade premarket, but several indicators lined up…
- CLIR was a former runner, spiking big but well off its highs.
- There was a news catalyst: a press release announcing a trial deal with ExxonMobil.
- It was Friday morning. If you’ve followed me for a while, you know Fridays are different. And a lot of Friday premarket gainers have continued to run lately.
Here’s the CLIR chart showing my entry and exit. (Click on the chart to view full size in another tab.)
So when I bought CLIR, I couldn’t trade it with my E-Trade account for some reason. Some students also mentioned having issues trading this stock with E-Trade.
Luckily, I have the Interactive Brokers app on my phone. So I did this trade entirely on my phone while giving my Trading Challenge webinar and making comments. And that’s why I wanted to share this trade.
You Can Trade from Anywhere
I can trade from anywhere. My haters think I’m faking it or not even trading. But I show every trade publicly. Good or bad … big or small … I share it and comment on it. And I actively consider whether a trade is good or bad while I’m in it. See all my trades here.
With CLIR, I was trying to give it time — at least until the market opened. But it was failing every attempt to get past $1.40 on the bounce. So I locked in safe profits. It wasn’t anything huge — I took a small position. But it was a nice low-risk trade in a speculative market. I sold into strength and played it well.
To understand all my rules, read “The Complete Penny Stock Course.” It blows my mind more people don’t read — and memorize — the entire book.
Now for some student questions…
Questions from Students
“Would it be accurate to describe sympathy plays as a kind of self-fulfilling prophecy?”
Yeah, people are looking for something similar. They often miss out on the first big mover so they try to capture the second or third. And because everyone’s trying to capture the second or third big mover … those stocks actually become better.
This is all a self-fulfilling prophecy — but it’s kinda like a gambler mentality. And with sympathy plays, you need that first big spiker.
Recent Sympathy Plays
Let’s look at a recent example. Discovery Gold Corporation (OTCPK: DCGD) led to Clancy Systems International, Inc (OTCPK: CLSI) … which led to Canal Capital Corporation (OTCPK: COWPP). If you missed DCGD, please read this post explaining how I find the best stocks.
With the latest round of sympathy plays, SES was the big winner. That led to NF Energy Saving Corporation (NASDAQ: BIMI). Which led to Westwater Resources Inc., (NASDAQ: WWR). And when these kinds of plays happen, each new sympathy play is quicker.
So last week when WWR spiked, it went from $3 to $9 in one morning, and then it did nothing. Compare that to BIMI, which took two days to spike and then crash. SES was the initial spiker from this latest round of sympathy plays — it took three days to spike and then crash.
So, SES was three days, BIMI was two days, and WWR was one day. It’s pretty cool how it works but they’re all interlinked.
“Aside from cutting losses quickly, what’s the most important rule when going long during a supernova like SES — especially if it’s based on a short squeeze?”
Definitely don’t chase. That would be rule #1. (Remember my overall rule #1 is cut losses quickly.)
I don’t mind missing out on the top because if you have a chasing mentality, you’ll often buy too late. These things can come down in a hurry just as they can spike in a hurry.
Please remember to be safe. If a stock is going up 30%, 40% … 70% … and you have FOMO (fear of missing out), just stop. Don’t feel like you need to chase it. It’s OK to miss a stock. Try to be meticulous with your entries and exits. Like I was with CLIR.
I’m glad to see Profit.ly user Anigai is getting it:
Anigai — timothysykes: Good point. Will continue write up on $CLIR but watch BNGO too. I will be aware of my FOMO.
Some people say “Oh, just be sure to have tight risk.” Thing is, even with tight risk, when you’re chasing, they can also get halted like BNGO on October 16. A lot of bad stuff can happen. So even if you have tight risk, I think the number one thing is don’t chase.
Also, take profits along the way. Singles add up. So if you hit your goals, sell into strength and be happy.
“In your 10/15 watchlist, you mentioned Supernova Season. Was that because of all the recent spikes? Or is it common this time of year?”
It can happen any time. Really, any season can be supernova season. Every single day there could be breaking news or a hot sector. You just have to take advantage of them while they’re there.
The reason I mentioned it last week is because there have been so many supernovas all in a short time.
DCGD: The Summer’s Biggest Supernova
Going back to DCGD, which I mentioned above … it was the biggest supernova over the summer. It spiked big and then crashed. Then there was CLSI, also rumored to be involved with Justin Costello. (Costello is the CEO of Green Holdings, formerly called Discovery Gold — which is DCGD.)
So CLSI had a multi-week spike. And then there was COWPP … also rumored to be involved with Justin Costello. And that stock had a multi-day spike.
With DCGD, I made a little money on the way up. But on CLSI, I profited the most — at least on a percentage basis. (I explain three of my CLSI trades in this post — which should’ve been titled ‘why penny stocks are awesome.’) And I also profited on COWPP.
Weirdly, these things tend to happen in threes. So just days after the DCGD, CLSI, and COWPP trio, we saw the next group of three.
SES was the big spiker, which led to BIMI, which led to the latest one — WWR.
The Latest Supernova Season
I do want to mention that I actually missed SES. I tried dip buying it on October 15 and failed. I took a small loss. But I followed rule #1 and cut losses quickly.
But I nailed BIMI, buying it in the $2s and selling in the $3s. It went all the way to the $11s, but I have no regrets whatsoever. And in my chat room alert, I said this could be the next SES when it was still in the $2s. I was 100% dead on.
It’s tough for me to capture the first one. But I recognize the first one. I usually do better on the second one. On both trios I just mentioned, I did best on the second stock. And by the third time, the spike is usually pretty weak like WWR.
Read more about the current supernova season here. That post has good lessons about SES, BIMI, WWR and another trio of supernovas from last week: DTSS, BNGO, and VIVE.
But again, I nailed BIMI and missed WWR. Like I said, I usually do best on the second one.
The big lesson here is don’t feel bad if you miss it. There will always be another one. What you can do is study the past. Learn from the past.
Millionaire Mentor Market Wrap
That’s another one in the books.
If you’re ready to get serious about trading, I suggest PennyStocking Silver or Trading Challenge. Both programs give you access to over 6,000 video lessons, a chat room, daily watchlists and much more. When you go all-in with the Trading Challenge, you also get access to thousands of hours of archived webinars and live weekly webinars.
What Students Are Saying
Here are a few comments from students on Friday, October 18…
Trading Challenge Chat
09:42 AM hichamzer: BIMI overnight play long at 4.91 out at 6.82 😀🔥.
09:44 AM Peachtart: $CLIR 600 shares out at 1.42 from 1.32 Not earth-shaking, but Hey, 60 bucks is 60 bucks!
09:54 AM RebeccaLee: DTSS 220$ profit in at 2.16 out at 2.38 was out early. Scared of low volume and getting stuck.
11:30 AM keeyongtn: BNGO in at 11:04 at $2.18 out at 11:28 AM $2.24 3,000 shares, breakeven now.
11:31 AM LKScientist: BNGO.. IN at 2.14.. out at 2.23.. 2000 shares.
11:48 AM Kriminator: Out BNGO @2.50 in at 2.16 – About 1500 bucks!
09:37 AM 2XTRM: BNGO in 1.83 out at 1.91 small profits.
09:50 AM HammsKCyeah: I just sold BNGO at 2.12 from 1.96 only 1500 shares but small gains add up.
09:51 AM StallionX: Got in BNGO at 1.98 out at 2.11 1200 shares happy with the small profits.
09:52 AM 2XTRM: BNGO in at 2.01 out 2.24.
10:23 AM aidan7dasilvain: BNGO at 2.10 out 2.2 nice 200 profit day on it.
10:47 AM aidan7dasilvain: BNGO at 2.2 out 2.32 loving BNGO today.
11:33 AM Marc11: out BNGO front $1.95 to $2.20 take my profit.
12:53 PM GooniesTrader81: BNGO quick trade. 450s @ $2.57 out near res of $2.77 at $2.71. $65 in 3 minutes. Sold before the crack. Lets see if dip buyers can hold it up above support at $2.53.
01:11 PM nrddctyes: 2.61 out 2.80 BNGO.
[Please note these results are not typical. These traders have exceptional knowledge and skills that they’ve developed with time and dedication. Most traders lose money. Trading is risky. Do your due diligence and never risk more than you can afford.]
What do you think of this post? Comment below, I love to hear from all my readers!