Damn All You People Who Contribute To Market Randomness!
Posted by timothysykes on Tue 18th of Mar, 2008 01:09:00 PMDo you every wonder why EVERYONE in the finance world has an opinion on stocks like Bear Stearns (BSC)? Sure, sure, BSC is big time and their collapse could lead to others, the whole domino effect, but why do people believe they can accurately judge the outcome? I think it’s just the latest example of how this industry—Wall Street and those who cover Wall Street—operates. And why you smaller investors/traders, like TIM, should have nothing to do with it! I’ll explain…
Look around at the most popular finance websites/blogs and you’ll see what I mean, TheStreet.com, Fool, Yahoo! Finance, CNBC, Marketwatch, FOX Business, Reuters, Bloomberg, Big Picture, Kedorsky, I could name these CRIMINALS all day. I say criminals because they’re all guilty—guilty of focusing their attention on popular, yet highly unpredictable situations, perpetrating the lie that makes everyone think the stock market is so difficult to understand. And they should be locked up. Or maybe just their fingers cut off and tongues cut out. Either or.
TIM Lesson: The vast majority of stock market randomness exists only in the most broadly covered topics!

Oh wait that actually makes some sense, doesn’t it? You’re damn right it does! Since everyone gives their own nearly meaningless take on everything that’s hip and popular, it creates a lottery-type environment where there’s little to no chance at being able to predict anything whatsoever! Usually somebody’s right eventually, but is it skill or is it just their time to win the lotto? Think about it, the more people playing, the more strategies in use, the more opinions—is that not the very definition of market efficiency?
TIM Lesson: When everyone is playing the same game, the potential to have any kind of “edge”, or odds on your side, drops substantially.
Ooooooooh, the economy recession, depression or stagflation, the dollar up or down short-term, what about long-term, Apple’s expansion into corporate and Europe, Google margins, click-throughs, Bear, $2 or $20 takeover, sooo many rumors, Lehman blehhhhhhhh—all too simplistic! Tooooo many variables that create varying opinions playing with too many varying amounts of capital.
Nonetheless, anything that’s actively traded will be covered by the joke that is financial journalism—so their articles will be read, ratings will go up, visitors will come, they can collect their paychecks, clients, ad revenue, whatever and they think they’ll actually matter.
TIM Lesson: Just because you’ll get interest due to your giving into all the popular topics du jour, does not mean you’re interesting. Or that you’re doing anything good. Or that you’re helping people learn. On the contrary, you are feeding into the randomness. You are no better than any boy band or Britney Spears. And that is why it’s inevitable that you’ll be cast aside in favor of somebody who is unique.
Those of us who look outside the financial lottery will eventually emerge the victors because we are able to get the odds on our side. We are able to help people make money. Consistently. To learn how to make money. Consistently. We are able to cut through all the BS, BS that has been built up for years and decades and is responsible for this thick muck that clouds people’s ability to understand the markets better, aka why finance/business is such an unloved niche in society.
All this has led smaller investors and traders to mistakenly believe they should be playing that same crap, too! Just as all these bastards look down on me because I trade Penny Stocks, I detest them even moreso because they don’t care about the little guys out there. They believe the little guys don’t matter. That is sad. So very sad.
And that’s why I went back to my $12k roots—to show that smaller accounts have the unique advantage of being able to get in and out verrrrrrrrrry quickly. Commissions and fees are neglible. They must use their size to their advantage!
And that’s also why I focus on Penny Stocks, they’re not covered by these Back Street Boy-esque media outlets—nope, they are waaaay off the radar—that is until I’ve devoted a few years to setting everyone’s priorities straight! You’ll see by the end of my quest, I, and more importantly many others, can turn $12k into $1.65 million, again and again and again—just not $1.65 mil to $10 or $20mil—the timing depends on knowledge, market environment, aggression and discipline.
PS Made a quick $180 shorting KBX this morning—a classic microcrapper momentum play—again, totally covered too soon, at current prices, leaving $250 on the table this time around (welcome to why I have a brighter future cutting through the BS in finance than I do in trading!) Detailed post to follow….so you can understand these profits and make them your own
PPS I was quoted in the New York Daily News today, showing off my unpopular anti-leverage stance!
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TIM Trades
View All| Date | Stock | Buy | Sell | Net |
|---|---|---|---|---|
| Nov 6 | QXM | $4.31 | $4.80 | $1936 |
| Nov 4 | COT | $8.66 | $8.88 | $642 |
| Nov 4 | QXM | $4.61 | $4.89 | $822 |
| Oct 30 | DDRX | $25.70 | $26.53 | $812 |
| Oct 29 | CTDC | $4.00 | $4.42 | $781 |
| Oct 26 | AWSL | $3.24 | $4.10 | $2516 |
| Oct 23 | RODM | $5.27 | $5.23 | $301 |
| Oct 22 | AMLM | $2.69 | $2.97 | $820 |
| Oct 22 | USEG | $6.12 | $6.09 | $85 |
| Oct 20 | CBOU | $8.93 | $9.06 | $243 |
| Oct 16 | VRMLQ | $16.79 | $18.65 | $2773 |
| Oct 13 | YONG | $11.05 | $11.66 | $1202 |
| Oct 13 | NPHC | $0.59 | $0.71 | $583 |
| Oct 12 | IMGG | $0.60 | $0.70 | $682 |
| Oct 9 | ZAGG | $5.50 | $6.10 | $2380 |
| Oct 7 | GVBP | $0.03 | $0.27 | $702 |
| Oct 1 | NPHC | $0.70 | $0.85 | $1482 |
Total: $92,304 (644%)

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