For some traders, this change is devastating. They don’t know how to adapt, and the strategies and patterns that worked for a while just aren’t working anymore.
So how can you stay ahead of the curve — and avoid blowing up your account?
- Be prepared.
- Be adaptable.
- LOOK for informational inefficiencies.
Don’t miss my recent video about informational inefficiencies:
Table of Contents
The Thing About Patterns
Let me tell you a secret…
If you want to be a self-sufficient, intelligent trader, you have to do more than just memorize patterns.
“But Tim,” you’re thinking, “You LOVE patterns! Your teaching is ALL ABOUT PATTERNS!”
But here’s the thing. It’s not about MEMORIZING the patterns. It’s about understanding how and why they work.
Patterns can shape-shift. You have to learn to adapt to be able to fully take advantage of them.
I’m Still Profitable
Lots of traders who are losing money right now are quick to blame it on the lack of hot sectors and trends.
But if that’s true, how have I still made six figures … just like pretty much every year for the past two decades?
Because I’m PREPARED for trades when they come my way. I’m watching out, because…
… informational inefficiencies can mean opportunities.
What’s an Informational Inefficiency?
In an efficient market, small news doesn’t move stocks in huge ways. But when the market’s inefficient, any news can make stocks experience huge price surges. They come on fast and furious.
I saw the story at about 3 p.m. The stock wasn’t moving that much, but after the story, it suddenly picked up. Then the market closed. Over the weekend, more and more people caught wind of the buzz.
And I took advantage of it again.
… and again.
That’s the power of informational inefficiencies.
I love informational inefficiencies. And so should you.
They happen TIME and TIME AGAIN in the market. Year after year. I talk about them in detail in my book, “An American Hedge Fund.” You can get the book for FREE with this link: https://tim.ly/timsbook.
Wanna get right to it? Flip to Chapter 6, where I talk about how I made over $100K in a single day … all thanks to an informational inefficiency.
I was able to read between the lines and anticipate that the stock price would jump. And my hunch was right. It wasn’t a fluke, either. I’ve had plenty of other amazing plays based on informational inefficiencies, like this one!
History Repeats Itself
Am I taking crazy pills? Why aren’t people figuring this stuff out?
I keep talking about things that happen OVER and OVER in the market. But most people just don’t listen.
Sure, I have some students who study hard and scale up bit by bit to become strong, smart, and self-sufficient traders.
But there are also a ton of people who just want hot stock picks.
Don’t think like that! Relying on someone else’s hot stock picks is NOT a strategy.
Instead, think about when the next informational inefficiency might pop up. It’s not a sexy term … but the results can be sexy. Find your own stocks to trade. With tools like StocksToTrade available, there’s no excuse for not doing your own research.
I’m not some super genius. I’m not psychic. I’m not even that good at math.
But I’m diligent, and I’m PREPARED for when trading opportunities come my way.
I’ve had to learn things the hard way. I never had a mentor when I was learning how to trade. That’s why I created my Trading Challenge – so I can be the mentor I never had to my students. I want you to avoid the dumb mistakes I’ve made and to take advantage of the lessons I’ve learned!
Ready to give me some time? Consider joining my Trading Challenge.
- I want to teach you how to trade.
- I want you to see how there can be opportunities in penny stocks — even though nearly the whole world loves to hate on them.
- I want you to get to know and love these informational inefficiencies.
Recent Tweets, Comments, and Trades from Students
Here’s a look at some of my students’ recent comments in the chat rooms and on Twitter…
From the Trading Challenge Chat Room
SatelliteIncomeUnlimited was clearly wowed by my crazy-eyed rant: When was this video filmed? Can you put that alex jones energy in a pill for me Tim? I don’t even want that pill actually.
Redwagonridertimothysykes says, Whoever said you are a crappy trader, and that you only play the gimmies can eat their own words! you rock!
Arturoil710 offered up the chat equivalent of a high-five: Tim’s BILZF Trade was pretty sick! (cash)
And this awesome comment from The_tipsy_nomad: His videos have the power to change our lives, as long as we’re willing to put the time in to study and learn what he’s teaching. The best mentor out there.
Student Tweets and Profit.ly Mentions
On Twitter, @chesskid90 saw my video about informational inefficiencies and recognizes that there are no excuses:
leavinbg you zero excuses haha never thought id hear the day a mentor tells someone hey if youre that broke dress down like a homeless guy and beg for cash until you can open an account and study on mcd’s wifi haha https://t.co/SfS9E5EmCf
Plenty of students love informational inefficiencies for the edge they gain over less prepared traders. Maybe Profit.ly user sab13008 puts it best: I LIKE STOCKS WITH LOTS OF IDIOTS IN THEM <3
Profit.ly user asfricksrs didn’t get in on the action but learned from BILZF: I like stocks with lots of idiots in them .. thanks Tim – hated the chopfest of NBEV – missed the BO of BILZF but learned from your alerts on it .. ty
Profit.ly user calvinw learned from the experience, too: Wow! I kind of figured it was one of your best trades. I’m embarrassed for not really catching your tip off when handed to us on a silver platter. Hopeful to capitalize next time. Thanks Tim. We like stocks with idiots, LOL.
Oh, and when it came to trading BILZF, plenty of students made great gains:
On Twitter, @hasenrahal1 reported a profitable trade:
@therealcrash89 also reported their best profit to date:
Profit.ly user EAdapon made a nice profit too: took 1k profits on this one. Thanks Tim!
Profit.ly user gjbailey36 made a solid gain, too: I like stocks full of idiots. I am one of the ones that sold some into the close as I freaked out…ha. but sold rest in the 1.9 for a solid gain. FOCUS on BFPG and clean charts.
Great work to everyone who made a profit from this informational inefficiency!
[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.]
How much do you love informational inefficiencies and why? Leave a comment below!