Why PennyStocking Is Not An Optional Course, It’s Required

Posted by timothysykes on Thu 8th of May, 2008 12:29:41 PM

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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!

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Related Reading

Brief Intro To My New Instructional Trading DVDs & Morning Watchlist October 1, 2008
Is This The Magic Stock Market Formula Or Am I Fooled By Randomness? February 29, 2008
Easy Short Plays: Short Selling Hyped Up Failing But Spiking Biotechs The Sequel April 10, 2008

JensGould

All good points Tim. Well done.

YngvaiMalmsteve

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.

Christopher Cianci

Waiting on taxes to come in - first purchase: DVD

timothysykes

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

Matt

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 :)

Bob the VC

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..

Dan-O

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

Dan-O

Yngvai, do you keep a trading journal?

YngvaiMalmsteve

No, I currently don't keep a journal. I just modify and update my rules list as I make mistakes, perfecting my own rules.

timothysykes

can u guys see this post okay, some people apparently had errors so we fixed it a bit

Tony Ellis

dsti...breakout inverse head and shoulders

Dan-O

I was one of the people that reported the error, it looks fine now.

Dan-O

Short Squeeeeze is on with CTDC

Blithe

Tim, at the end of your post you say "Below is a small clip

timothysykes

nah took out the utube clip cuz it was havng problems

Davey

What a hideous spread on VRML, there is almost a .20 cent difference between the bid and ask.

J-Mo

Tony, where do you see DSTI going from here?

Dan-O

Anyone looking at CTDC?

timothysykes

yah ctdc is a great pennystocking play, i have no trades today so its out of the question :(

Bob the VC

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!

timothysykes

tony, never trust a solar breakout, as csiq, solf, akns have taught us

Goose

ENT - breaking $3 pivotal point. Keep an eye out.

J-Mo

Tim, on ctdc, when would you see the 'whites of their eyes' in that play?

Dan-O

Tim, CTDC would make a great lesson on why you do not short after the move.

AP

Page is working for me now.

Dan-O

I wasn't shorting it, I took a small long position when it dipped at 6.20

Dan-O

Just to be clear, the company is a POS.

monkiman

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...

Dan-O

I'm out of CTDC, didn't make much. TOS says it's hard to borrow, oh well.

nsaflyer

SUNV, time to short again?

Dan-O

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.

Mark

THINK OR SWIM doesn't have any the stocks we want to borrow. What are we gonna do?

RGIlles

CTDC looks like it's going to be a nice one

mattiefattie

Advantage sykes haha. u having flashbacks to ur state championship high school tennis days???

Dan-O

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.

codyhof

Would like others opinion on SUNV... it feels like this pump hasnt slowed down.

Goose

ENT - going higher

J-Mo

Is ASIA doin a cup and handle breakout like it did several days ago? around

YngvaiMalmsteve

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.

Mark

Think of Swim Suuuuuuuuuuuuuuuuucks!

YngvaiMalmsteve

Yeah, Goose, I'm long ENT right now and making a nice gain on it

Mark

Think OR Swim I mean. (Just wanna make it clear who I'm talking about)

Davey

50 shares...You should be paper trading for now...commissions are gonna kill you, and I'm pretty sure you can't hold reserved shares overnight, even if you have a GTC order working at TOS. You have to use them in the day you reserved them or reserve them again the next morning.

jesseb

Hey Tim, a new version of Wordpress is available...your website wanted me to tell you :P

RGIlles

Why do they suck Mark? Be specific

timothysykes

LOL classic pumper tricks on VRML, faking big buy order, trying to squeeze shorts, then in 1 big order take out all the buyers, just as we did at $3.60, then buy 100 shares back at $3.80...friggin amateurs!

CTDc, i wouldnt short anytime soon

burky

VSCI - does a flag pattern mean anything intra-day?

YngvaiMalmsteve

Hey, Davey, thanks. I didn't know you can't hold shares overnight.

I only have a $2500 account right now, and was looking for a potential $1 drop. That would still be a $40 profit after commissions, a 2% return on my total account.

I'll cancel the order and try in the morning. Buying power for me will much be better tomorrow anyway so I'll be able to reserve a much bigger chunk of shares.

novalis78

yes, ENT and GTXO had a nice run up today...unfortunately, for me only on WSS.

jesseb

And why do I have 2 timbucks? I just registered ;)

timothysykes

this is the new wordpress

J-Mo

So Tim, I'm assuming by the lack of posts, you're gonna hold onto your VRML short at least until tomorrow? Unless it drops below $3 in the next hour right?

Davey

YngvaiMalmsteve,

Just to be clear, it's only reserved shares that aren't filled that aren't carried over. If you actually use your shares you can hold them as long as you want.

will_the_thrill

are we watchin bpsg?

Dan_O

Burky, I usually take it to mean a consolidation point.

Just my opinion of course, but regardless of the time frame the flag pattern doesn't mean much to me until it resolves up or down.

I think it's pretty cool that VSCI found support at the previous high. I like the illusion of an orderly world.

I'd watch this for a double top and maybe a possible retesting of those lows.

WTF do I know... I might just be a drunk, stumbing around in the dark. Don't buy or sell anything based on what I write.

YngvaiMalmsteve

Hey, Davey, thanks for the info. I knew about the day but didn't know you couldn't hold them overnight. That makes sense, otherwise people would be reserving shares days ahead of time.

Mark

Think Or Swim sucks because I haven't been able to borrow any of the shares I wanted the last two days, and apparently a lot of other people are having the same problem. If it would help to go to another OTC-friendly broker I will.

Tony Ellis

lol...i won't be holding overnight.

Goose

IAR - can't help but say this one just tanked crazy. Probably a lil too late to hop in for a quick gain.

Adam

Buy the DVD. Rewinding to better understand something is invaluable. Plus the binder with the entire DVD presentation and charts was an unexpected bonus that I thought was a huge help.

Dan_O

Homebuilders are getting f'n killed.

Davey

I use TOS, but I used Trade King before they have cheap commission and usually had all the stocks that we play here. Also I think Ameritrade allows shorting most stocks. I'm throwing them out there so we can all at least have a chance at getting these shares. There are only so many shares that each broker has of these hard to borrow stocks.

TradeWizard

Whats up Tim? Just barely started looking at all your stuff and you are pretty amazing at what you do, I'm stoked that you put up for yourself and let everyone know there is a lot of BS out there on Wall St. Thanks for mentorship, I just started trading options late last year... Ever trade options Tim? Or are you a straight up penny stock shorter?

nsaflyer

Ameritrade doesnt have any CTDC but they do have IAR

novalis78

IAR - a fickle thing. Me in it goes out. Me out, it goes up. Me short, it goes up. Me cover, it goes down. Don't you love this. Tim will dip my head under water :-)

JensGould

Here's your hourly update on LGDI more big selling!! Every hour on the hour...

Dan_O

No offense, but I wouldn't touch IAR. It's at support and probably going to go sideways and chop.

timothysykes

FYI guys that kind of breakdown after a slight breakout that ENT is is displaying is oh soooooooooooo common. there is a reason why i avoid certain patterns and this is one of them

timothysykes

don't draw any conclusions for the VSCI bounce, i've found time and again after those kinds of panic selloffs, the bounces dont matter, it takes all the wind out of the sails.

yes i'm holding VRML overnight,unless it tanks--really encouraging afternoon action here, just gotta take out $3.40 and i'll be all set

Webster

Well I am in on my first short. VRML at 3.75 Ameritrade finally let me do one of these. Hoping to clear the 3.40 range and see it slide. Tim thanks for this site!

Stoquer1

I here ya Novalis

timothysykes

if u think you're gonna get borrows every time, you're sadly mistaken. thinkorswim does a great job, but u gotta get up early and or have a specialty broker (who requires $250k) to get the best borrows. dont cry, many times where u cant find any shares, its good cuz the shorts get squeezed. vrml was scary there for a while...as to what other stocks u're trying to borrow, i have no idea, no other supernovas on my watchlist

JensGould

Tim what pattern on ENT do you mean? The breakout after the downturn its had?

timothysykes

thanks TW, just a penny stock shorter, read my book and u'll see why--its where all my experience is

TradeWizard

How is your day going today Tim?

TradeWizard

Read your book American Fund manager? is that the one you are talking about? I would love to, where's the best place to purchase?

timothysykes

lgdi and vrml have the same kind of sideways price action, difference is VRML is up on hype, LGDI is up on contracts and manipulation...i choose hype

TradeWizard

Oh yeah, Tim what trading platform do you use? Or what do you recommend?

novalis78

Stoquer1, hi there. My timing is even worse than Tim's ;-). I hope you got out of IAR safely.

Joseph

Trading Platform: ThinkOrSwim
BOOK : An American Hedge Fund (it's on your right)

Dan_O

FYI, J. Lebed's contract with PSTI is over tomorrow.

timothysykes

day's going well, thanks VRML's fluffy PR delayed the inevitable, but i have some crazy stuff going in the background, wish i could tell u guys about it, but not yet...

yes, my book An American Hedge Fund shows u why i've come to short these penny stocks and only that:

http://www.amazon.com/exec/obidos/ASIN/09795497...

Goose

VRML has a stinky spread.. Still a good play?

timothysykes

thanks dano--good info about PSTI!

J-Mo

VRML dropping...dropping...

Dan_O

Hey man, that's what were here to do!

By the way it was you who told me about J. Lebed's Ultra-Annoying newsletter.

FYI he stipulates the contract date in the closing part of the e-mail, so I just put it into my outlook reminders.

I'm looking to short PSTI if it can resolve past the 50DMA, there are (what I believe) phantom buy orders @ 2.98 and 3.00 which should scare some people off. I'm looking for .50 to a 1.00 move on that bad boy.

TradeWizard

You dont just use think or swim do you Tim? Is that direct access or what?

timothysykes

right now i'm only using thinkorswim, will also soon account at speedtrader

TradeWizard

Awesome thanks for the info Tim.. It would be really cool to sit down and meet with you sometime and go out to lunch or something to get some of your ideas on the market! Maybe a possibility in the future?! I'm new to the whole trading scene but so far I am loving it and I would love to learn from one of the best as yourself! Let me know man! Your a badass Tim, totally got me inspired to be successful at this business!

Goose

MESA touched .84 whoever mentioned it about shorting when it falls below that..I want to know what ur action is tmr altho AH is up a bit.

Jeff C

Tim, what common pattern are you speaking of with ENT...thanks. Also, Only your latest radio interview is available to play, it automatically plays without the choice of selecting the other interview (Fous is the one I'm trying to hear)

timothysykes

new post:

http://www.timothysykes.com/2008/05/08/my-10-al...

Fantom

Besides Tim, anyone here hit a 100k yet?

folding

Already ordered the DVD. Just waiting for it now.

How long does it usually take to arrive?

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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 $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?

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

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)!

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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%)