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ANALysts & Venture Capitalists Know S#@! About How SmallCap Stocks Trade

Posted by timothysykes on Tue 22nd of Apr, 2008 11:44:12 AM
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While I respect Andy Kessler for making a ton of $ back during the bubble and writing two superb books–Wall Street Meat and Running Money, this piece of s$#@ interview he gave on smallcaps really makes me mad. Not only does he believe it a foregone conclusion that investors should look for companies with emerging technologies, but he also refuses to name any names or give any kind of timeframe whatsoever for his theory.

To Andy and all other venture capitalists, do your thing with big companies, but don’t talk about smallcaps and microcaps—these companies ALL have cool technologies, but this isn’t 1999, most of these companies are gonna fail and their grim reality is reflected in their stock prices. While you have good intentions, interviews like this are what gets people investing / believing in these POS companies, inevitably losing $ and thinking this niche is random, which, if you focus on the proper variables—chart, volume, manipulation, message board hype etc—is clearly not the case. Dangerous dangerous dangerous, welcome to why media outlets are sooooo bad with smallcaps and microcaps–it’s a different world down here in the gutter, ain’t no place for WASPs!

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  • bdog
    I need something to short anything looking good coming up? All my prospects arent ready yet. Maybe I looked over some? thanks guys
  • Jesse
    VISN has dropped more than a dollar today, think it's related to this?

    http://www.fool.com/investing/general/2008/04/2...

    Or is it just a legit drop...
  • and FEED loses 19!!!!
  • Ryan
    FEED is fading.... so is the entire market, though. There is no shares to short, but tempted.
  • Dan-O
    Careful with VISN, it's a real company and still in a uptrend. It could hammer a short seller.

    I do not have a position in it, but I'm watching it closely.
  • Dan-O
    Damn, I should have read that article first.
  • Watching VISN for entry $13.30 if it doesn't sell off again
  • timsykes
    who knows with those articles, chart has no support, not a reliable pattern for me
  • Roderic
    Take a look at COIN
  • Oliver
    i think he has a point. he isnt talking about a few 1000% increase. he claims 50%, bam. think about it in what are you start liking them. isnt that when they increase 50% as fast as possible on some stupid technology that they claim to be the best.
    so i think this guy would actually make your strategy more beneficial since people who will believe his nonsense will try to find those stocks that sugre those 50%. but since there is more action, more people looking theres actually a higher possibility to have bigger spikes.
    in my opionion you should be saying thank you for trying to get more idiots to play that game. lol
  • timsykes
    there will always be idiots playing the game, what i dont like is how difficult it is for me to convince people this stuff aint random cuz people like this, no different than Sri talking about CNOA, mislead the public into thinking macro trends matter to smallcaps when in fact they have very little bearing
  • monkiman
    hey tim, I just bought the dvd, book. Im curious on how you traded penny stocks, as your account size grew.
  • timsykes
    saw that, thank u, save me a bunch of explaining--as u'll read and watch, i've played them different in different market conditions, never really understanding until just recently their limitations...they're beautiful cuz they can provide constant profits, but u gotta understand those profits will never stretch into the tens of millions. tough for a cocky kid to understand
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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 $58,000+ even though the stock market has crashed) to show everyone how to turn thousands into millions, even while having a life (somewhat) and making plenty of mistakes. Currently he is the #1 ranked trader out of 25,000+ on Covestor)

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 2000+ 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?

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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.

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TIM Trades

View All
Date Stock Buy Sell Net
Nov 19 AENY $2.80 $3.02 $1148
Nov 18 NLST $4.16 $4.40 $947
Nov 18 IMGG $1.42 $1.64 $2094
Nov 17 NLST $5.04 $5.59 $2195
Nov 13 VRMLQ $21.50 $22.97 $2901
Nov 11 EONC $2.61 $2.80 $687
Nov 10 EONC $2.74 $3.36 $9784
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: $98,094 (681%)