The Answer To The Question I Get Asked Most Frequently

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Blowing away every other question/topic I get emailed about is this one simple question. I get asked about all sorts of companies–largecaps (with people saying “I know you don’t play largecaps, but what about IBM?”), biotechs (”blah blah blah drug looks very promising”), stocks that have gotten wrecked (” down 99% off its highs, think it can comeback, even a litle?”), companies with new technologies (”I know you don’t believe companies, but this blah blah blah technology is revolutionary”), stocks with MACD/RSI/Fibnoacci breakouts, blah blah blah….

Guys, when’s it gonna sink into your little heads that I don’t give a flying f%^& about ANY of the conventional viewpoints out there–fundamentally, technically, short-term, long-term–I don’t care…

You see people who ask me these questions are playing a different game than me. They’re generally watching CNBC for the latest news, relying on “experts” for interesting fundamental stories, scanning God knows how many different technical patterns each and every day, believing a well diversified portfolio–trading and investment–is the safest bet to long-term success. They’re right in that if they stick to their rules, they don’t risk disaster, but the gains are so erratic–remember 90% of traders lose $–that many of these peeps give into their lack of discipline/knowledge and partake in rule-breaking/leverage–ya know, to augment their returns when they KNOW they’re right–and crazy shit happens.

As I preach in my PennyStocking DVD package (learn more and see reviews HERE), I, for the most part, care less about what a company does, their story, their advanced technicals, what the scam artists “experts” say, as all of that IS NOT VERY PREDICTABLE.

Instead, I look for only the most volatile low priced stocks–think gains of 100-400% within a few days, ideally based on hype, ideally looking to short these hard-to-borrow stocks when the hype fades–with the goal of taking positions in 1, 2 positions max at any one time, because while it’s not a scalable, complicated nor risk averse strategy, I’m often right 80-95% of the time.

And since these “ideal” opportunities don’t happen every day, this strategy is ideal for those who wish to trade part-time.

And considering the % returns on smaller accounts–see mine HERE–are ginormous, I believe it’s ideal for smaller traders.

So do me a favor, and unless you’re emailing me about a hyped up/surging low priced stock, I’m not interested. This is my niche, and now that the majority of my income earned/life goal is teaching my niche, I’m not interested in other, less predictable/not-my-game/you-have-no-edge-whatsoever niches.

Gratzie.

Check out my brand new DVD, ShortStocking - the only guide you'll ever need to profit from short selling!

6 Responses

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   theproficientinvestor - August 30th, 2008 at 4:21 pm

   Well put Tim. Just keep doing what you are doing. The numbers speak for themselves.

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   Mike_13th - August 30th, 2008 at 8:20 pm

   Great post Timmay!

   The mantra:

   Guys, when’s it gonna sink into your little heads that I don’t give a flying f%^& about ANY of the conventional viewpoints out there–fundamentally, technically, short-term, long-term–I don’t care…

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   Ben Bien - August 30th, 2008 at 10:42 pm

   hm, that’s PennyStocking captured in ONE POST if I’ve ever seen it. TIM transcends all formal ‘analysis’ tools and methodologies. I’ve been thinking about PS more recently, and I’ve come to understand it as the antithesis to all mainstream theories and analysis methods. There’s no need to comb through balance sheets or 10Qs or anything. It truly is the cleanest method I have ever come across, but again, it’s not as readily grasped BECAUSE most traders are used to doing random, gambler-esque things which may lose them money or make them tiny gains when they trade tickers that are well-known but where they have no edge with. And I agree that PS must be part-time, because if you over-trade like I did, you tend to trade things where you have no edge at all and thus greatly increases your chances of losing money. The ideal patterns and setups only come around every so often, about 3-4 times a week IF the scammers and pumpers and frauds are actually doing their jobs. I also think that is why you’re able to balance trading and writing and blogging and being a sarcastic yet funny prick. You even said many times already that the ideal setups don’t happen very often, but when they do, the profits/probabilities are huge and I along with other traders are often too impatient to wait for these set ups.

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   YoungGunz - August 31st, 2008 at 12:10 am

   Good post. That reminds me of a phrase that my co-workers and I cringe when we here. “It shouldn’t be to hard all you ahve to do is…” Which usually translates into whatever it is being 10x harder to do then the person that needs it done thinks it is and didn’t allow you much time to do it since they don’t realize how hard it is to do.

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   StockRake - September 1st, 2008 at 12:29 pm

   So you’re saying you don’t like IBM?

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