Why PennyStocking Is Not An Optional Course, It’s Required
You know why I’m always promoting my 6-hour PennyStocking instructional DVD package? (See the first independent thorough review HERE) It’s definitely not about the money—not yet anyway—it’s to help teach you guys the rules of trading penny stocks that I’ve learned the hard way over the past 9 years. I’m giving you my battle-tested rules of engagement that I wish someone had given me when I first started or even now cuz anyone with a decade of market dominating success is someone worth listening to and learning from.
Don’t say you’re gonna dip your toe in penny stocks and make some amateur error, writing it off as “why penny stocks are like gambling” or how it’s “part of your penny stock 
education”. My DVD is your tuition—I should probly get it accredited or something—not the more expensive stupid trading losses!
You want some examples? Fine, I’ve got plenty of them (people, I’m gonna use your comments not to be mean but to make examples out of you…it’s not like any of you use your full name anyway!)
First that comes to mind is Wes shorting SIX after a morning panic 10% drop. Stupid stupid stupid…even though I occasionally short in morning, I don’t recommend it—there’s too many spikes, the afternoon is usually much more gradual. And, even when I do short, I short looking for that morning panic, NEVER after it!
As for shorting IAR, NLS, VNDA or SIX—I’ve repeatedly said I don’t short earnings plays and there is a reason why I avoid them. Cuz earnings plays actually DO deserve to surge higher cuz the company is doing well—or at least that’s the perception. While they could very dip—as they sometimes do—the odds of a big drop are miniscule, so with my poor timing skills—which you probly have too—there’s no reason to even consider shorting them. I post them on my watchlist as potential buys only. Stick to shorting failing companies, frauds and pump and dumps, then you have the odds on your side!
Whoever just shorted VRML at 3.50—that was just a stupid entry…in the 3.70s or 3.80s, at least you still had a chance to get some nice space between you and the support at 3.45, but if you’re betting it goes negative on the day, there’s no point in shorting that close to support until that support cracks—ideally you short, making it crack…tough lesson for people to learn that sometimes its better to short at a lower price or not at all…sure, it still looks good, but now its just a waiting game.
With today’s VRML’s 10% drop off its morning highs, whether or not I’ve screwed up or there weren’t share available to short, I’m now 4 for 4 in my calls in the last 4 days:
LGDI 10% morning drop on Monday
VRML Tuesday morning squeeze from $4 to $5, big 30% drop off from $5
Shorting into VRML’s Wednesday strength for a solid 15% price drop, which I posted play-by-play HERE, HERE and HERE
Basically, there is a high degree of predictability down here with the gutter stocks, buuuuut only in certain cases so you must learn about the variables so you can adapt to profit from those worthy opportunities. That is what my DVD focuses on, the variables that align to create these patterns, then I detail dozens of charts, then I share trading lessons learned. It’s elementary, but simple works best in this niche.
I’ve worked my ass off creating these products to give you a foundation off which to build so no, I’m not your normal patient polite trading coach cuz I have something that is unique, something that really works. Ask any of those polite professional “experts” to blog every second, answer questions and face up to all criticisms. They won’t. They can’t. they are snake oil selling scum. Advantage Sykes.
Below is a small clip…PS to all of you guys emailing me, don’t add to the clutter that is my email box with some whiny emails asking why I haven’t gotten back to you, I’m friggin 2 weeks behind cuz only a few of you are using the FORUMS like I asked!
Enjoyed this post? Sign up below and never miss a post again!
LoadingTIM make you some $$$$? Help him pay his expensive web designer!
Related Reading
Add a Comment!
If you want to receive TIMbucks, you'll first have to Login before posting a comment. Click here to learn more on the new TIMbucks rewards program.
Top TIMbucks
Join the ranks! TIMbucks is a cool new rewards program designed to get you guys to share your thoughts, ideas and experiences openly. Our top TimBucks earners to date are:
- Davey (100)
- Yngvai (84)
- ViciousChicken (79)
- noobtrader.08 (76)
- ivegotstylekid (73)
- jj (51)
- Dan_O (46)
- timothysykes_forums (44)
- Ben_Bien (35)
- JensGould (33)
Navigate
$
Updated Daily!
136 Books
Up 52%
20 Videos
3 Podcasts
8 Talking Pics
65 Links
Stocks Review
UPDATES
May 11, 2008Cool interactive video interview we'll be trying out tomorrow afternoon, let's hear some questions!
May 11, 2008WSW casting call, maybe I'll go and film the auditions!
May 10, 2008Uh oh, you're gonna have to learn on your own!
May 10, 2008Saturday linkfest, read it or weep
Stock Watchlist
| XRM | $4.03 | |
| SSBX | $2.65 | |
| APWR | $20.05 | |
| VRML | $3.07 | |
| NTHH.OB | $0.78 | |
| DPDW.OB | $1.02 | |
| CROX | $11.14 | |
| SUNV.OB | $1.62 | |
| AYSI.OB | $2.03 | |
| FORC.OB | $1.67 | |
| CNEX.PK | $5.50 |
TIMtrades
Learn from my successes, learn from my failures, learn from 
56% TIMreads
TIMtags
Loading ...
1JensGould(TIMBUCKS: $33)
May 8th, 2008 at 12:43 pm
All good points Tim. Well done.
2YngvaiMalmsteve
May 8th, 2008 at 12:50 pm
Something I’ve found that helps me is to make a list of rules and WRITE THEM DOWN. Then whenever you’re about to enter a trade, make sure the trade fits within those rules. If it doesn’t, then it may be a trade that’s better avoided. This can help establish discipline.
3Christopher Cianci(TIMBUCKS: $16)
May 8th, 2008 at 12:56 pm
Waiting on taxes to come in - first purchase: DVD
4timothysykes
May 8th, 2008 at 12:59 pm
Yngvai, yeah I actually rewatch my DVd cuz it includes all my points!
VRML is showing nice nice action, wall of sellers now at $3.70, pushing down on the buyers in the $3.50s…$3.40 is still cracking point, dont know if it’ll happen today, tomorrow or next week, but I mean where’s it gonna go? Barring miraculous FDA news, volue’s fading, sellers gonna keep getting more confident, buyers–whoever’s crazy enough to buy a stock up 350%+ on no news–should weaken and eventually panic should set in
5Matt(TIMBUCKS: $5)
May 8th, 2008 at 1:00 pm
I’m going through the blog and copy/pasting the important stuff, in addition to my notes from the dvd. There are a lot of “gotchas” to look out for, and I’m using paper money on TOS until I understand what’s going on. The only problem is I can’t reserve shares :)
6Bob the VC
May 8th, 2008 at 1:23 pm
Good points all. My entry into VRML sucked (I didn’t realize just how close to support I was), but my exit was a total accident. I had a stop limit placed with an activation of 3.70. The order right before mine (according to my last sale indicator) was only 3.679.. How the hell it triggered my stop I have no idea.. It was still much lower then I should have set it, but I really expected to have time to adjust it..
7Dan-O
May 8th, 2008 at 1:45 pm
Here’s a useful quote:
“Anytime you find yourself hoping in this business, the odds are that you are on the wrong path — or that you did something stupid that needs to be corrected”
- Richard Russell
8Dan-O
May 8th, 2008 at 1:46 pm
Yngvai, do you keep a trading journal?
9YngvaiMalmsteve
May 8th, 2008 at 1:47 pm
No, I currently don’t keep a journal. I just modify and update my rules list as I make mistakes, perfecting my own rules.
10timothysykes
May 8th, 2008 at 1:56 pm
can u guys see this post okay, some people apparently had errors so we fixed it a bit
11Tony Ellis(TIMBUCKS: $23)
May 8th, 2008 at 1:57 pm
dsti…breakout inverse head and shoulders
12Dan-O
May 8th, 2008 at 1:58 pm
I was one of the people that reported the error, it looks fine now.
13Dan-O
May 8th, 2008 at 1:59 pm
Short Squeeeeze is on with CTDC
14Blithe(TIMBUCKS: $28)
May 8th, 2008 at 2:04 pm
Tim, at the end of your post you say “Below is a small clip…”, were you referring to something in “Related Reading”?
15timothysykes
May 8th, 2008 at 2:05 pm
nah took out the utube clip cuz it was havng problems
16Davey(TIMBUCKS: $100)
May 8th, 2008 at 2:07 pm
What a hideous spread on VRML, there is almost a .20 cent difference between the bid and ask.
17J-Mo
May 8th, 2008 at 2:08 pm
Tony, where do you see DSTI going from here?
18Dan-O
May 8th, 2008 at 2:09 pm
Anyone looking at CTDC?
19timothysykes
May 8th, 2008 at 2:12 pm
yah ctdc is a great pennystocking play, i have no trades today so its out of the question :(
20Bob the VC
May 8th, 2008 at 2:13 pm
I see ya Timmay..
Surprisingly my short at $3.7 was part-filled for 633 shares. That probably means this stock is about to go through the roof!
21timothysykes
May 8th, 2008 at 2:13 pm
tony, never trust a solar breakout, as csiq, solf, akns have taught us
22Goose(TIMBUCKS: $28)
May 8th, 2008 at 2:17 pm
ENT - breaking $3 pivotal point. Keep an eye out.
23J-Mo
May 8th, 2008 at 2:19 pm
Tim, on ctdc, when would you see the ‘whites of their eyes’ in that play?
24Dan-O
May 8th, 2008 at 2:20 pm
Tim, CTDC would make a great lesson on why you do not short after the move.
25AP
May 8th, 2008 at 2:20 pm
Page is working for me now.
26Dan-O
May 8th, 2008 at 2:22 pm
I wasn’t shorting it, I took a small long position when it dipped at 6.20
27Dan-O
May 8th, 2008 at 2:23 pm
Just to be clear, the company is a POS.
28monkiman(TIMBUCKS: $29)
May 8th, 2008 at 2:30 pm
GPCB…. make a few centz on that, wasn’t worth my time, as it was slow like a turtle. SWS was a nice uptrend stock, I got into very late, but still made $109…
29Dan-O
May 8th, 2008 at 2:36 pm
I’m out of CTDC, didn’t make much. TOS says it’s hard to borrow, oh well.
30nsaflyer(TIMBUCKS: $9)
May 8th, 2008 at 2:38 pm
SUNV, time to short again?
31Dan-O
May 8th, 2008 at 2:44 pm
I checked with TOS again (that chat feature is awesome), they have at least 1K available. I haven’t funded my TOS account yet so I can’t trade.
I wish you all the best of luck though.
32Mark
May 8th, 2008 at 2:48 pm
THINK OR SWIM doesn’t have any the stocks we want to borrow. What are we gonna do?
33RGIlles(TIMBUCKS: $13)
May 8th, 2008 at 2:50 pm
CTDC looks like it’s going to be a nice one
34mattiefattie
May 8th, 2008 at 2:51 pm
Advantage sykes haha. u having flashbacks to ur state championship high school tennis days???
35Dan-O
May 8th, 2008 at 2:53 pm
I wouldn’t short it here (only the second day up, another 500K shares still short), the squeeze will continue and there is not telling how high it will go.
The veteran traders know this but I worry about the rookies.
36codyhof(TIMBUCKS: $19)
May 8th, 2008 at 2:56 pm
Would like others opinion on SUNV… it feels like this pump hasnt slowed down.
37Goose(TIMBUCKS: $28)
May 8th, 2008 at 2:58 pm
ENT - going higher
38J-Mo
May 8th, 2008 at 2:59 pm
Is ASIA doin a cup and handle breakout like it did several days ago? around
39YngvaiMalmsteve
May 8th, 2008 at 3:00 pm
I reserved 50 shares of CTDC at $11 LIMIT so it won’t execute, then made it GTC so I’ll have it tomorrow. Can’t take a bigger position because of my limited buying power. Buying power should be better over the next few days so I’ll add to my position if things look promising.