How My TIMalert Subscribers & I Shorted Today & Made Thousands Of Dollars

Posted by Timothy Sykes on Tue 10th of Mar, 2009 04:49:41 PM

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That’s right, instead of following all the incapable-of-thinking-outside-the-box-lemming-like traders, I went against the grain today and did what I did best: short sell a low priced stock whose upward momentum looks to be reversing after a huuuuge run not due to fundamental news, but due to hype.

Trust me, I was more than just a little tempted to go along with the simplistic market bottoming theory and buy FAS, BAC, MS, C or AXP, but I held onto my beliefs that maybe, just maybe this rally is nothing more than a self-fulfilling prophecy by a bunch of traders who want a market bottom and that it might not last into tomorrow…after all, the peeps on StockTwits were going crazy with those kind of plays…

So I sent this alert to TIMalert subscribers:

Shorted 1300 RGR at $10.25, play on market strength…this gun play has been on my watchlist for several days, just went red on the day because it works inversely to the market’s strength (hence it breaking out to new highs when the market was tanking)…there’s technical support in the $10.15 area and a lot of support at $9.80, but if the overall market keeps surging, I don’t think those minor supports really matter, my goal is to cover around $9.80, gotta see how it acts if and when its gets there as to whether it’ll really crack big, also cut losses quick if it starts surging

Look at that afternoon drop–noting that there was a triple top in the $10.60-$10.80 area and that $10.10-$10.15 was support (now becomes resistance as its cracked):

I also posted on the TIMalerts.com subscribers-only website that fellow gunmaker SWHC might be a good play too and PennyStocking combo package DVD student T.B. rocked that play, shorting not once but twice and profiting by $800 (which is more than he paid for the DVDs that taught him the very pattern from which he profited!)

Actually, as you can see from the charts below, SWHC was a far better short and I coulda woulda shorted that one instead of or in addition to RGR, but when I shorted RGR, SWHC hadn’t gone red yet on the day…

…ah well, can’t be perfect, I finished the day up $200 or so and several other TIMalert subscribers also made a few hundred each, all adding up to a few thousand dollars so far.

Tomorrow the goal is the same as every time I short a stock that’s up too much and has now gone red–morning panic, ideally breaking below that $9.75-$9.80 congestion zone so I can cover in the $9.25-$9.50 area. C’mon morning panic, gotta love stop losses getting taken out!

Normally I’m somewhat scared when I hold a short overnight in a seriously surging market, but considering RGR failed to even finish positive on the day with the market up 6-7%, well, that’s just pathetic! Every single momentum trader with any intelligence whatsoever was selling today–maybe even shorting too–and today’s price action leads me, and anyone with a basic understanding of technical analysis, to believe RGR will be weak tomorrow and probly the next day too because its momentum is gone…and now there are tons of better stocks out there whose momentum is just warming up….trends change, profit from it!

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Related Reading

How My Subscribers And I Earned Thousands Of Dollars In Trading Profits From These Chart Patterns February 26, 2009
Why I Just Shorted A Sleepy Company Called Zynex Inc. (ZYXI) July 21, 2008
How Did My Latest Penny Stock Trade Go? $10,000 In Profits Or Losses? July 6, 2009

e

Tim, most short sellers are up 15% to 20% this year. It looks like you haven\'t made any money at all this year, so you are dramatically UNDERPERFORMING other short sellers. Can you explain this please?

Thx!

Timothy Sykes

cuz i short into strength dummie...oh and please do tell me the short seller up 15-20%, bring it bitch and stop changing your fake aliases

sot

shorted SWHC on the break of $4.50 on the downside. Was rewarded very well. I did monitor it yest here....

http://www.stockonlinetrader.com/2009/03/short-...

Timothy Sykes

good basic article on SWHC breakdown:

http://www.stockonlinetrader.com/2009/03/intrad...

Timothy Sykes

haha SOT, great minds...

Buck Woodford

i dont know who this initial poster is or where he gets his performance stat info.

but the hedge fund ($100mm) that i'm most familiar with is +25% on the year. and they are not even pure short sellers, its a variably-hedged book.

i will not name the firm out of respect to our relationship, but there's definitely one for ya, Tim. and there are others.

a

Tim, The market is down 15% in 2009. Do you think it is good performance for a short seller to be EVEN during the same period?? And I promise to stop using aliases, I'm just a loser so I try to hide it.

alex

What's the supposed rationale of the gun company hype? Bad economy = more suicides and more violent crime??? People preparing for the collapse of the US government and the emergence of a new era of anarchy? LOL

Timothy Sykes

ok buck

a, yes my performance is damn good...u forget i'm not a hedge fund manager, my job isnt to make the highest returns myself, i spend waaaay more time blogging/working on dvds/private coaching so what u should be concerned with is how my students are doing...especially as compared to what they pay me...my products are so cheap that somebody up 1%/year has already paid fro my DVDs...and dont worry little spammer, its early in the year, lets see if u're around in 6-9 months

Timothy Sykes

PS my strategy is not based on market moves per se, when i made 10%+ each of the last few months in 2008, a slow time was inevitable, my god, u doubters make me sick, i've been doing this 10 years, do u not know how to research? wait of course u dont, my bad

Reaper

Tim, the correct answer, similar to #10, is that your strategy has a beta near zero ... your returns are unrelated to market returns. However, if you were being straight, that means you shouldn't talk about beating the S&P. The only thing that matters and is meaningful is your absolute return.

I'm up 1.3% this year in my arbitrage strategy ... it would be stupid to compare it to S&P or this strategy because it is different.

Timothy Sykes

there ya go, i dont think i mention beating the s&P much, its more about just beating everyone in terms of % return when all is said and done after any extended period of time

Alsandair

In at 9.98 on RGR. I've been watching this pig with lipstick for a few days as well. I think we got some big downside on this one... BIG. Good short on this one Tim. We'll see how we do tomorrow.

Buck Woodford

Tim,

In your first comment, I assumed you were saying no short sellers are up 20% YTD. Some are, so that's why I posted. I still will not name the firm.

2nd.. Are you calling me a spammer ? I'm not sure if that remark was aimed at me. If so, much to your chagrin, you should know that I will be around for decades.

Timothy Sykes

buck, u're not a spammer since u use your real name, i was referring to the idiot who keeps using different aliases on my site, its sickening

Timothy Sykes

and my point is while some may be up 20%, i'm more than happy wirh a 1% YTD return in this market especially since i spend the majority of my time writing/researching as my goal is not to be up the most, its to be up and teach the best...would much rather be the best teacher than the best trader since the entire trading business is a joke

e

Tim, I don\'t get it. The S&P index is down over 50% since you started. Yet you only made $30K exclusively shorting. This was an opportunity of a lifetime for a short seller, and you came away with next to nothing.

How is this good trading??

HopeSolo

Tim: Any response to the news of the up-tick rule coming back?

Timothy Sykes

e, i thought i told u not to use fake aliases anymore? go attack someone who lost $, aka 99.9999% of wall street. dimwit, i'm gonna start blocking your sorry ass

Timothy Sykes

uptick rule article is tomorrow morn, its meaningless

e

Tim,

99.9%?? YOU LIE! I know many short sellers who are up 20% and more this year alone. Actually, you are the WORST performing short seller I know of.

You are a farce. Of course you will try to delete my posts and block me b/c you are full of crap,

Timothy Sykes

e, do these other short sellers spend most of their time teaching/blogging? and i never claimed to be the best, i'm just #1 out of 20,000 traders on covestor, pathetic nobody is topping me yet...bring it bitch, u got nothingggg, all u do is help me sell more dvds

Uni

I think e is just a closet bitch. He wants your dick Tim. He wants it bad.

He's been goading you to convince him he'll enjoy it. All he needs is just ONE excuse. This bi-polar crazy is so fucking full of insecurities he has to go around attacking others. Why don't you ask him how he's doing?

In fact, e, how much have YOU made? Why the fuck do you pay so much attention to Tim when your so called 'friends' are doing so much better?

JohnCA

"WORST performing short seller I know of."

Look on covestor, you'll see a lot of short sellers doing worse than Tim, you dumb bitch.

neal

dude, shorting for pennies is a way risky way to make money. I bought swhc at 3.50 and rgr at 9 and oln at 8.75. I made a dollar a share on each. I got stopped out on swhc because i am not seeing any 13G being filed, which is odd. Plus, i am doing the numbers and swhc's earnings may not work, i find your page full of arrogance and a waste of effort

Timothy Sykes

whos ays shorting for pennies? i aim for 50 cents-$1/share, its not risky if i follow the rules, i dont go for big moves which IS riskier

lazybones

Hi Tim,
I am lazy and just want the profits. Can I just subscribe and mirror your trades and earn a lot like you did? Is it possible?

Timothy Sykes

yes lazybones, u can do exactly that, signup here:

http://www.timalerts.com

but u might have to learn along the way too

Wes

Tim - I haven't seen anyone post about this yet. Looks like you got some airtime on CNN. It was that timothysykesexposed website. It is from 2:07-2:13 (web address at the bottom of the video). Here the link:

http://www.cnn.com/video/#/video/business/2009/...

lazybones

How fast are the alerts and will I be able to get in close to your entry and out close to your exits?
Do you have subscribers trying to mirror you? Or are they just learning and not using your trades?

Timothy Sykes

lazybones, alerts go out within seconds of my actual trade, email takes a few mintues but those setup with my timalerts free text messaging get them the quickest...i have no idea hwat people do with my alerts, seems like a lot of people just watch and learn considering only 1/3 of the people even open their emails!

GARY BURLESON

GOT IN AT 10 WITH 2K SHARES CURRENT THE STOCK IS AT 9.50 AWESOME PICK TIM, THANK YOU.

Timothy Sykes

good job buddy, i like big wins!

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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.

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Hard work to learn how the greatly misunderstood niche of penny stocks provides opportunities every now and then on which you should pounce.

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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).

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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%)