A Shining Example Of Why Short Selling Pumped Up Penny Stocks Rocks!

Posted by timothysykes on Wed 6th of Feb, 2008 11:52:16 AM

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TIM $14,933, Up $1,583, Thank You IDMI, Thank You PennyStocking

Short selling 40% of my TIM assets into the face of pure insanity, aka (IDMI) up 234% on 3 month old news and a PR that failed to get much interest when it was released the day before, might seem a little crazy to some. But then again they haven’t traded THIS EXACT SAME PATTERN HUNDREDS OF TIMES LIKE I HAVE.

Over the past decade, even though the plays, the players, the message boards, the news, the industries, the % of assets I’ve used, the extent of my poor timing on my entries and exits, the patterns and the % profits have remained more or less the same. And that’s why I think I can teach this game to anybody.

TIM Lesson: It’s not about BS random picks, it’s about pattern recognition and understanding of the variables to adapt to the patterns mutations (Don’t worry haters, I won’t bring up my DVD) (oops!)

You see, as usual, I made plenty of mistakes—missing the buying opportunity on the breakout at $2, shorting too early (at $3.15), averaging up (at $3.75 to get my total average cost to $3.36), not adding to my position this morning pre-market when proven correct (Thinkorswim had plenty of shares available to short in the $3.30 range—in hindsight I should’ve added, but who knew if it would spike at the open) and covering too early (at an average of $2.90ish—right now at $2.70—and will probably go lower over the next few days) and for all my mistakes, I came away with a 40+ cent/share profit, $650ish, 12% in overnight, one of TIM’s largest to date.

Is this just the latest example of how lucky I am? Am I Fooled By Randomness? Possibly. Quite possibly. But somehow I don’t believe that it’s “random” for a stock that surged—basically due to penny stock momentum and a short squeeze—to be one of the biggest losers in the stock market the next day. Sure, sure they got that Nasdaq delisting notice, blah blah, but that really only applies to stocks under $1 so that’s not a big concern here and I doubt it influenced things much. So just take a look at these pumped up penny stock charts and see all these similar patterns. I’m not a “stock picking genius”, I didn’t “discover” these patterns (I didn’t land on Plymouth Rock, Plymouth Rock landed on me!) and there’s plenty of other people who play these at TheLion and GreenOnTheScreen, (but I’m gonna help them go mainstream (and for that, I’m taking my cut!)), You’ll notice some of these patterns aren’t similar and if you’ve read my book, you know it’s these “imperfect patterns” that have always done me in.

So I’m gonna keep playing and talking/writing up a storm about patterns like (IDMI)—ideally, focusing purely on them because they off the best risk-reward trades in the ENTIRE stock market. Sure, they’re scary, so it’s just gonna take practice and knowledge to get you guys comfortable playing them. Maybe I’ll get better at buying the initial breakouts, waiting long enough, and shorting the breakdowns, but I wouldn’t count on it. I’ve simply got too many other things to do right now, namely, writing, blogging, vlogging, podcasting and cutting through all the BS in finance. It’s a full-time job. Trading these patterns will always be up there, but remember, they’re not very scalable (no way to short more 1 million shares of IDMI, so $3mil is the max on this one, so apologies to the rich bastards out there who are only interested in scalable strategies, this isn’t for you), aka ideal for individual investors and traders.

So take a look at this annotated chart and learn. Depending on price action, I might re-short (IDMI), c’mon bounce you POS!

idmiannotated

UPDATE: Couldn’t help myself, re-shorted 800 shares of IDMI on the bounce at $3.18, covered within 10 minutes at $2.95, easy, easy $150ish. Newbies: I don’t advise shorting late morning spikes, they can go further than you expect and sometimes even turn a stock completely around (rare)…this is a true POS company though, so I would have no problem adding on the way up–that’s right Livermore zealots, I average up!

Check out my brand new DVD, ShortStocking - the only guide you'll ever need to profit from short selling!

59 Responses

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51

JOEJOE - July 29th, 2008 at 10:03 am

Thanks the the prompt response. I guess you are to busy stealing people’s money to take the time and respond to a simple question. Maybe it is just you do not have an answer because you are full of shit?
52

TIM Sykes - July 29th, 2008 at 10:16 am

LOL joejoe, i use and recommend thinkorswim, do some research next time, itas pasted all over my site…and yes i have no time cuz unlike EVERY other trading guru, i blog every day, show some respect boy, i’m trying to change this industry for the better
53

TIM Sykes - July 29th, 2008 at 10:18 am

and PS WTF are u talking about stealing other people’s money? my readers make $, my premium service is 30/month, if u cant afford that go back to the ghetto and beg more
54

Young Gunz - July 29th, 2008 at 10:21 am

pwnage!
55

JoeJoe - July 31st, 2008 at 8:25 am

That is right, stealing peoples money. If you were a good trader you would be trading for a living and not selling you bullshit system to the unfortunate slobs that believe your hype. All you are is a Penny Pumping Pimp.

I think I will take a trip back to the ghetto, if I remember correctly I saw you mother down on the corner of High Street in Newark.
56

longshort28 - July 31st, 2008 at 8:33 am

c’mon man..JOEJOE…WTF…it is upto him to answer or not. This is his forum and he can do whatever he likes. He has not sent any invitation to you or me to come and post your Q & A. He is giving trading tips free to many people and also not charging a lot for Tim alerts. Poeple have made thousands on his stock picks.
57

TIM Sykes - July 31st, 2008 at 8:47 am

silly hater, save the insults for snakeoil salesman who dont share everything…fact is my strategy is unscalable–you’d know this if u took the time to research, but like any common hater, u only have half a brain–fact is i can make $2,3, %, even 20-50k/month without any problem trading these things…i want more and under my current biz plan, not only am i helping thousands of peeps not be part of the 90% of industry losers–but i’m already approaching that 50k/month figure…in short, go fuck yourself, i’m just getting warmed up
58

JoeJoe - August 1st, 2008 at 7:03 am

The insults are going to a snakeoil salesman (YOU!). I have been investing in penny stocks since the early 90’s and I produce results in excess of $200,000 a year starting each new year off with 5 grand! Those are results. You do not see me trying to fleece novice investors out of a monthly charge for my service. I would give out my advice for free unlike Tim the Pump and Dump Pimp! Post your official tax return and we will see what you got! Such language from a so-called professional. IT JUST PROVES YOUR IGNORANCE!
59

TIM Sykes - August 1st, 2008 at 8:51 am

joejoe moron, my life is an open book, i’ve been ona reality show, all my trades are audited, covestor verifies my latest 90% returns…start blogging and lets see what u got killer…whoever said i was a profesisonal? i can say whatever the fuck i want, i’m just a content provider, everything is for entertainment purposes only and u dumb haters help me entertain, so thanks, i’ll send u an omaha steak

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Start Here

Who Is Timothy Sykes And Why Should I Care?

See Tim's full bio HERE. Tim turned a few thousand dollars into a few million by taking small gains time after time on hundreds of volatile penny stocks, discovering that his trading strategy, while consistently successful, works best for those with smaller accounts.

Determined to teach others this PennyStocking trading strategy (learn more HERE), he went back to his original $12,415 roots (already $27,000 even though the stock market is down 20%!) to show everyone how to turn thousands into millions, even while having a life (somewhat) and making plenty of mistakes.

How Can I Consistently Make Money In The Stock Market?

Hard work, Determination and Know How.

Hard work to learn how the greatly misunderstood niche of penny stocks provides opportunities every now and then on which you should pounce.

Determination to seek those probable profits out and know how in order to actually profit from them.

Long story short, wait for stocks that are extremely volatile - for whatever reason - and then aim to take small profits (between 10 and 50% within a few hours, days or weeks) here and there, either from betting on higher or lower prices (yes, you can make $ betting on lower prices, it's called Shortstocking (learn more HERE).

Why Penny Stocks?

As Tim explains in several ALL-NEW instructional DVDs (see them HERE) and in over 900+ blog posts, penny stocks are the most hyped and corrupt niche in the entire investment world. These two qualities make them the easiest to profit from (legally) because the vast majority of people who play penny stocks are suckers and all-around ignorant people. If you have any intelligence whatsoever, you have a clear advantage and it's like playing basketball against mental midgets.

Where Do You Find Stocks To Trade?

This is the #1 FAQ (see more HERE) and it is answered in THIS blog post.

Of course, that's just a brief introduction - to receive a full education, there is Tim's book An American Hedge Fund which is the story of his remarkable rise and lessons learned.

To truly increase your odds at profit, Tim has designed an entire set of detailed instructional DVDs, covering all the variables that amount to over 24 hours of instruction (see them all HERE)!