How Grad Student Tony Ellis Made $6,500 Overnight & Is Now Up $85,000 In 7 Months!
Posted by timothysykes on Thu 26th of Jun, 2008 11:27:00 AM
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Sure, it’s amazing that Tony Ellis turned $80k into $130k in 6 months, it’s amazing that his two worst trades weren’t even losses (he simply failed to take profits properly aka a good problem to have), it’s even more amazing that now he’s now given me PDF file that says his gains have now surpassed $85,000 (friggin’ awesome!), but what’s most amazing is his trading education and success is directly due to my instructional DVD PennyStocking Package (which comes with a 220-page instruction manual and an autographed copy of my book An American Hedge Fund). This ain’t no ad, it ain’t no scam, it’s proof positive my trading theories work.
This latest post is all Tony Ellis, who had the balls to buy a Supernova breakout (a chart pattern detailed at length on the DVD), even though it seems crazy and even I missed it (I was at a FOX interview…tough life!). And Tony wasn’t the only one….BJPN, himself another PennyStocking DVD student, also profited nicely, basically paying for the DVD in one trade—and judging by his $ profit, his account isn’t more than a few grand:
Bought pdo yesterday afterhours @37.5, sold half this morning @41.15 and the other half @41.89, at exactly 9:30:00 according to my trade log! Must have been a ton of buyers because I set to sell them all at limit price=41.05! $258 profit. I showed everyone at work my trade confirmation on my phone!
OK, enough promo/pride from me (c’mon, if your $300 DVD package was now responsible for hundreds of thousands of dollars in gains for others (remember Mike the machinist…I’m claiming responsibility for half his $300,000 gains!), wouldn’t you be a little proud too?), take it away Tony:
Classic Supernova Breakout
Monday I posted “Anyone else crazy enough to buy PDO @ $35?” (TIMcomment: nope, Mike and BJPN did too, see HERE and HERE) I must be crazy to buy a stock up over 750% in a few weeks was my initial thought. Before watching Tim’s DVD and learning the dynamics of a supernova I could have never conceived buying a stock so overextended. But knowing what I do now I understood that this was in fact a perfect opportunity. Low float, hard to borrow shares and making a ridiculous new high…count me in! Better phrased by superman, “PDO short massacre”. I bought 1000 shares @ $35 Monday and sold near the open Tuesday @ 41.50, 19% profit.
Why are Supernova breakouts so highly profitable? It’s very simple if you think about it, there are no sellers only buyers. Three factors contribute to this condition. Supernovas are grossly overvalued so they attract short sellers and these early short sellers become buyers when they make new highs. The shares are hard to borrow so new short sellers can’t put downward pressure on the stock. (TIMcomment: I agree 100%)
Finally, the trading volume in these stocks comes from traders and 90% of traders lose money. Since traders are losing money then they obviously aren’t selling when a stock is making new highs and many of them are buying. (TIMcomment: interesting way to look at it) These combine to create the perfect storm for short squeezes.
This is my take on the supernova pattern and the inverse is true when they break support. Tim’s DVD really explains everything much better. (TIMcomment: why thank you kind sir)
It really is true, scalps for 20, 30, 50 cents/share are fine…but they’re not gonna make you rich and they’ll probly make you go bald. Focus exclusively on Supernova patterns, which are much more rare but on which you can earn $1,3, $5/share (and you don’t have to be anywhere near perfect, as all these guys missed PDO’s top by more than $4/share!), and you’ll live a healthier, wealthier life!
Now you can Twitter any questions/comments to TIMhelp and obviously you can follow TIM on twitter too!
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TIM Alerts
View All| Date | Stock | Position | Ideal Exit | % Gain |
|---|---|---|---|---|
| Nov 24 | KVHI | Short | $3.70 | 18% |
| Nov 20 | STSX | Short | $3.10 | 11% |
| Nov 18 | PERY | Short | $3.75 | 25% |
| Nov 11 | IIJI | Short | $2.80 | 5% |
| Nov 6 | CVI | Short | $4 | 15% |
| Nov 5 | MECA | Short | $1.95 | 51% |
| Nov 4 | CVI | Short | $4.81 | 4% |
| Nov 3 | NAK | Short | $3.20 | 5% |
| Oct 29 | EVC | Short | $2 | 26% |
| Oct 28 | HSNI | Short | $6.80 | 7% |
| Oct 28 | HSNI | Short | $5.75 | 4% |
November: 9 alerts, 15% avg gain
October: 11 alerts, 14% avg gain
Yesterday shorted TCB @ $12.89, covered this morning @ $12.35. Today re-shorted 200 @ $12.95
IMPRESIVE!
I was in on that PDO play too. In at $36.49, out at $41 for a $261 profit
speaking of PDO, its falling apart nicely today.. too bad i couldnt get any shares this am and still cant
nice yngvai…i cant understand all these other plays people are posting, i now profits are addictive but if u wait for patterns like that, your odds go up soooooo much.
lets ask tony ellis, i bet he’s not even trading today cuz there’s no perfect patterns
No…trades just watching the action. Wishing i got long JUHL yesterday
yeah dude, u called that at what 2.50 yesterday? wish i’d gotten URRE this is perfect fade, i’ really just a wus lately
IRBL.OB How about that one?
I know nothing about sub penny stocks
Fear can scare us out of a lot of beauties. I say we trade drunk. Call it crazy but it’s liquid courage. I’ll try it out tomorrow and tell you guys how I do.
No in and out trading for me today- made a nice profit off of my sqnm short… now I am holding Royl- I decided to go long term, July or something- this one is starting to look like a PDO-
EGSR.OB I think I found a beauty. .15 and has a name of EnerGas. New 52 week high today.
EGSR looks pretty low volume/illiquid for a sub-$1 stock. Not something I’d want to play
Shorted URRE 1,000 @4.10. Just covered for 3.70. Nice $400 gain.
AdamN did you post when you shorted URRE prior?
I have 200 pdo shares reserved, (actually, I am short 200 shares of pdo with one broker and 200 shares long on the other, so when I decide to short I’ll just sell my long position, also avoiding osama bin sec).
Thinking of shorting the damn thing once it breaks 30. Any thoughts, would somebody dare to short it before that? looks to me like only $3 downside compared to $ 15 upside if superman uses his superpowers again. Last time it hurt, you are supposed to use your powers to fight frauds man.
There will be blood!
http://www.cnbc.com/id/25391066
hev didn’t break 7.50 resistance NO COFFEE FOR YOU RAMBONE !!!
getshorty,
LOL. I was about to post HEV never busted the magic mark. Resistance and support lines are so important. Maybe I’ll catch that free cup of joe later this week or I’ll owe you one.
Screw the sub penny stocks. Not my thing as I haven’t played them since 2000. Gonna stick to the game plan and only post the best of the best picks from now on. This way we have fewer picks to follow from everyone.
JUHL was clearly the best of breed play that fit all the guidelines of penny stocking released by Tony. Sadly not that many people took advantage of that play.
I heard about JUHL yesterday, but the chart wasn’t coming up on TOS when I tried to find it
anyone here from palm beach?
palm beach, hey how’s the water
WATCH ABAT! potential breakout of intraday consolidation and of 10-day AND six month highs …. aka will be breakout out on a lot of different charts!
Imsmith, I did not post my entry point on URRE. Still new here, so I didn’t anyone taking my newbie advice :-)
sorry - the 6-month highs are already broken (5.50-ish) - still looks good thourh -volume good
beautiful
ABAT…nice chart and good volume. However, I’m going to wait until the last hour of trading to consider buying it…too early to tell right now if this breakout will succeed
Heck, just as I write this, it fell back down
Just got an email from Lebed…he’s pumping CSGH now. I’ll be keeping an eye on this one in the coming days for a $1.50 break
ABAT sucking at the breakout attempt - down markets not helping to bring out the buyers
Yeah, Alex. Watching some of these breakouts, sometimes the best ones (other than the low float oil plays which are fueld by how oil’s doing) are the ones that have a bit of news behind them to attract new buyers. ABAT doesn’t have any strong news to sustain the momentum.
I’m not ignoring ABAT yet - still has potential - bullish if it ges back above 5.60
If URRE takes 4 out again it’s going momo. Stock is showing strength or it would have been sub 3 by now. Nuclear factories are the future. URZ, UEC, and URRE got sliced because the price of uranium was halved during the year. Things are going to change with uranium prices expected to double.
[img]http://img.villagephotos.com/p/2006-3/1159589/michael-jackson-early-years.jpg[/img]
testing
how to I get my picture to appear on the little spot to the right of my name?
Opec member Libya says OIL to hit 170. Oil up huge and markets crashing on downgrades of C and GM by GS. Warren Buffett saying inflation is exploding and country is already in a recession.
Check the chart of this ETF out. (DCR) It was short OIL and closed yesterday.
Tim has wetdreams of this type of chart when he sleeps.
Jumped the gun in at 3.98. I’ll dump it if I see 3.90. $.50 upside. Now this is my kind of play. 4 resistnace looks weak on level 2. Should spike to day highs after it crosses 4.
F’ing SEC Bin Laden, I’m out of day trades for now after my $400 gain on URRE. For those of you that use TOS brokerage, I was informed today from a Bruce S over at the support desk that a new software release is coming this weekend that will enable us to monitor our day trades more effectively so we do not violate this idiotic SEC rule.
I could not find any further details on this at their site or from Bruce, but I am hoping that it will give us clear indication of exactly how many outstanding day trades we can make and also when we will have the green light to trade again. I hate the gray area on this rule, it seems enforcement on it varies from brokerage to brokerage. The last thing I want is my account to be suspended for 90 days!
Hey, Adam, I always thought TOS’s day-trade buying power calculation tells you how much you have available to daytrade. Basically, the software doesn’t let you exceed whatever your day-trade buying power is. I’ve done more than 4-5 in a rolling 5-day period, but I’m still limited overall based on the day-trade buying power.
Yes, you are correct about the buying power limitation. I guess I am hoping for an indicator as to when that limit will be reset without having to go back through my trading logs to see exactly which days I day traded and then determine which date I will be back at full capacity. Just something simple is all! Can you tell I’m lazy.
Yeah, I never know when it’s going to reset and how much, but I do know that I can do more than the 4 every rolling 5 days. It hasn’t limited my trading too much. Since I have a small account, I have to keep my # of trades low and try to stick with high percentage plays anyway.
Am I the only one using two accounts to avoid PDT?
new post about livestock tomorrow:
http://www.timothysykes.com/ti.....e-changes/
anybody take a look at toro.ob…i got in today , also look at all inside buying on xtlb lately…looks like something brewing.
TORO and XTLB are messy looking charts, jd. They aren’t plays that I would get into myself
watchlist:
http://www.timothysykes.com/ti.....shortsyet/
TONY ELLISSSS
Yngvai,
You can probably do more than 4 day trades if you don’t use a substantial amount of your total capital, and I would have to disagree about the buying power being a restriction, since I traded well below my buying power intraday and I still got flagged. What ToS counts is the quantity of trades you open and close over that 5 day rolling period. If you open and close 4-5 you should be fine, but if you do more you’re going to get flagged. I can’t day trade for the next 90 days now, so I have to go back to Tim’s method of waiting for ideal trades rather than *try* to use Mike_13th’s momo method of scalping. Don’t get me wrong though, scalping was damned fun and I was getting pretty good at it until I got the margin call of death, so if one has the account size one should definitely consider combining Tim’s method with Muddy’s/Mike’s/Laura’s momo method. The greenonthescreeners are doing a variant of PennyStocking-on-cocaine or something. Mike’s six figure gains speak for themselves.
Yngvai,
You can probably do more than 4 day trades if you don’t use a substantial amount of your total capital, and I would have to disagree about the buying power being a restriction, since I traded well below my buying power intraday and I still got flagged. What ToS counts is the quantity of trades you open and close over that 5 day rolling period. If you open and close 4-5 you should be fine, but if you do more you’re going to get flagged. I can’t day trade for the next 90 days now, so I have to go back to Tim’s method of waiting for ideal trades rather than *try* to use Mike_13th’s momo method of scalping. Don’t get me wrong though, scalping was damned fun and I was getting pretty good at it until I got the margin call of death, so if one has the account size one should definitely consider combining Tim’s method with Muddy’s/Mike’s/Laura’s momo method. The greenonthescreeners are doing a variant of PennyStocking-on-cocaine or something.
Well, then, I’m confused on what TOS allows and what it doesn’t. I’ve done something like 10 this week and I haven’t been flagged. I’m not trying to push it, but I’ve just had some trades that I had to exit quickly.
Maybe because I usually don’t hold more than 1 position at a time? I’m not sure.