Part Two Of My Interview With Optionetics
Posted by Timothy Sykes on Sat 4th of Apr, 2009 09:35:18 AM
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You can read part one of this interview HERE…
Or you can read the entire part deux HERE…below are some of the juicy Q&A:
Optionetics: Are your trading systems geared more toward long-term strategies or short-term strategies?
Tim: Totally short-term, but since my strategy is based on an ideological framework of hype/manipulation, I’m sure long-term position taking is possible. I’ve just never had the patience to try.
Optionetics: What are some of the key rules or factors that you consider before selecting any potential trading opportunity?
Tim: I want to make sure the stock I’m trading is “in play” because I want many fickle traders involved as their involvement opens the door to wild price action from which I can profit. That means I’m looking for liquidity and message board hype-as message boards are a great indicator as to how many traders are involved with a given stock.
I know it sounds a bit strange, but I really try to view each trade as my last; that way I wait until the very last second, the point at which I can’t help but get involved in a stock because the setup is so perfect, before making another trade. There are so many fake outs with low priced stocks–both longs and shorts–patience and discipline are key.
Optionetics: What are your favorite markets to trade and track with your analysis tools?
Tim: I only trade low-priced stocks, primarily on the Nasdaq, but sometimes AMEX, NYSE and OTCBB. I believe there’s a distinct advantage for smaller-sized traders “down here in the gutter” and I won’t stop until every single poor person understands they have better odds and can use their small size to their advantage trading $2 and $3 stocks instead of the ever so popular $300+ GOOG and $50+ RIMM.
Optionetics: What is your most memorable trade?
Tim: ISCO, now the ticker is ISO-I went long 75% of my net worth on it over the weekend back during the mania in early 2000 because they announced they’d be featured on CNN over the weekend. The CNN report was wildly positive and the stock gapped from $17ish at the market close on Friday to $29 at the market open on Monday. I sold for a $123,000 gain and took my entire freshman dorm out to dinner that night. The bill was cheap because none of us were of legal drinking age (the story is actually an entire chapter in my book An American Hedge Fund.)
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TIM Trades
View All| Date | Stock | Buy | Sell | Net |
|---|---|---|---|---|
| Nov 19 | AENY | $2.80 | $3.02 | $1148 |
| Nov 18 | NLST | $4.16 | $4.40 | $947 |
| Nov 18 | IMGG | $1.42 | $1.64 | $2094 |
| Nov 17 | NLST | $5.04 | $5.59 | $2195 |
| Nov 13 | VRMLQ | $21.50 | $22.97 | $2901 |
| Nov 11 | EONC | $2.61 | $2.80 | $687 |
| Nov 10 | EONC | $2.74 | $3.36 | $9784 |
| 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: $98,094 (681%)
