Review of #traderchecklist Instructional DVD by @timothysykes Chapter 5

Click here to get Timothy Sykes Trader Checklist 100% for FREE.

chapter5

Table of Contents for Review of TraderChecklist

Really starting to get more into the nitty gritty of what the SSS is and how to apply it to penny stocks. In this chapter Sykes goes over the “E” in PREPARE fully and starts explaining the second “P”. The E is for “Ease of Entry/Exit” and the P is for “Past Performance”. This is good info because he explains the concept of “former runners” and the idea that many tickers repeat their runs over and over. Something newer traders may not realize is traders will pile into tickers they recognize. 99.999999% of momentum traders are creatures of habit. Whether they be long or short biased, when a familiar ticker shows up on scans there is a good chance there will be lots of activity in that stock that day.

Jumping back to the “E” this is why Tim repeats himself over and over that you should only trade the stocks with volume that day. And also why there is value in filtering your list down to only the percentage gainers. If there is no volume TODAY, do not trade it. You do of course need to think about the average daily trading volume, but we are day traders or short term swing traders, we only care about what is happening today and at most this week. I know so many new traders that get “trapped” in a low volume stock that they recognized a pattern in. Sure pattern recognition is very valuable and part of your growing process but the pattern is worthless unless you can get in and out when YOU want to.

VERY good chapter, one of the best so far. Good content and as I mentioned in the opening sentence this part was 100% trading related content. If you are new this is a solid chapter to rewatch. Also it’s the first appearance of the “bad sushi” analogy. I’ve known Sykes a long time and he loves analogies, though most of the ones he makes are misses, the “day old sushi and cheap stocks” is one of his best!

Notes:

E: East of Entry/Exit (1-10)

Daily trading volume and position size
Speed of movement, be sized and prepared for slippage / implication of chasing
Borrow availability, SSR

Size needs to be related to daily volume – THAT DAY not average
Avoid being more than 1% of daily trading volume

Most think small amounts are a handicap, they can actually be an advantage

Find your niche

Shorting is difficult.
-Lots of details and explanation of shorting
-Borrows
-Annoyances

You must consider how hard it is to short, implications and hassles
-You can waste a lot of time watching and researching a ticker then find out there are no borrows

Buy ins – T+3

P: Past Performance/History of Running (1-10)

-Former runner?

-Long term chart – MTF

-Crow – long time chart death, most spikes will get sold into

-Same with Shorts, often pile into any spike on the short side

-Discussion of tax loss selling at end of year

-Look for past volatility
-Momentum chasers come in, short sellers can came in Traders remember tickers

-Past performance guides traders to be better prepared for current and future spikes

-Track shares outstanding and float

-Calculate market cap – Shares outstanding * stock price

-“float rotation”

-Buying low float runners is solid strategy “supply and demand”

-Sykes considers low float < 5M

-Watch market cap in relation to float

-Sellers will come in if valuation is too high
-good reason to watch big % gainers only

-More discussion of low floaters

-Trading low floaters is fine, but hard and you have to be VERY fast.

-Valuation discussions

-Risk to reward, recognize climate of shorting versus buying

-big movers tend to move big again, slow movers tend move slow

-avoid boring stocks

-$CDTI

-$GRPN

-$SIRI

-$EVOK

-Discount sushi analogy

-$MGT

-$OPTT

-Reverse Split description and detail – explanation

T Minus 219 Days – Sealfit Kokoro

Rise Time: 6:00AM

Bodyweight:183.9

Mile Time: 9:33

Training:

Supersets:

– Snatch 3-3-3-2-2-2-1
– Bench Press 8-6-5-4-3-2-1

~Rest 3 minutes~

5×5 Overhead Press

Assistance (supersets):

– Deadlift Sumo High Pull 3×12
– Single-Arm Kettle Bell Swings 3×10

Burnout (supersets):

– Plyo Push-up 2×12
– Plate Jumps 2×12

Review of #traderchecklist Instructional DVD by @timothysykes Chapter 4

Click here to get Timothy Sykes Trader Checklist 100% for FREE.

rr

Table of Contents for Review of TraderChecklist

I liked this chapter overall, tons of good stuff about risk to reward and trade plans. I have a certain fetish for the discussion of trade plans I admit. It’s something that is so often ignored or overlooked. Everyone will brag about profits or sometimes and I do mean sometimes, mention a loss. But seldom is it mentioned what the thought process was going into the trade. And how, where, when, and why you took that profit or loss.

Sykes hammers on and on about planning your risk to reward ratio. Of course it’s all just guesstimation, but something that wipes out traders more than anything in my opinion is making a trade because a stock is moving but never really spending a few moments to plan out what you are going to do when you have a loss or a profit. This can never be reinforced enough.

The rest of the chapter is what I would consider Short Selling 090. It is a pretty basic introduction but short selling is confusing as hell to most traders so its good that he takes a basic approach. Notice the notes below Tim covers a TON of tickers and the potential for taking the “meat of the move” while shorting POS and/or promoted stocks.

In summary a very solid chapter especially for new traders and guys interested in the potential of short selling. Not to mention great content on trade plans.

Notes:

$WLOCD – Rest Stop Short trade – 50% drop

Discussion of panic selling in pump and dumps

$HEMP – Short sell

Discussion of potential in shorting junk stocks, when they crack they crack hard.

Q tickers – bankrupt companies

$LEXG

$NXTH

$TNGS

$HHWW

You don’t need to be an “amazing trader” to make money in penny stocks.

Catch the meat of the move but take profits

$ISNS

$FMCC

Stair stepper grind up then crack and gap down short.

More on $FMNA and $FMCC

$WSGP

Good discussion of not trying to find the top, let them fade and short against previous highs.

$CLRH

Promotion stocks discussion, doesnt really exist much any more but decent lessons

Funny background on pump of $CLRH
-unrestricted share selling/dumping

$NNRX

Good newbie explanation of “how a pump and dump works”

R in SSS

R: Risk/Reward 1-20 on scale

You have to plan and estimate the risk and reward TRADE PLAN

Always plan for being wrong. Do not be a deer in the headlights

Always stick to you plan, breaking your plan ALWAYS increases losses.

Discussion of market maker stop loss sweeping.

You do not know the risk and reward but you have to estimate and create a plan. Easiest way is around support and resistance levels.

Scenarios of risk and reward based on support an resistance

$ XXII
Examples of calculating risk to reward and ratios

So few traders ever concretely think about trade plans. HAVE TO HAVE it before the trade.
-No plan no trade
Risk is always minimal as long as you cut losses quickly.

Avoid trading earnings – gambling

Never trade to get back to even. Always cut losses quickly.

Time comes into factor. In momentum stocks usually if the move doesnt happen quickly it won’t happen.

Trade crazy stocks but be quick.

You can’t predict news/announcemnts halts etc

No legit company sends a promotional mailer

Always keep an eye on markets.

Recap of some really old gap plays.

Below Deck recap – $EKSO

stockstotrade.com STT reference

$CNTO short

$PRGN – Low float super nova

More discussion of low float trend

Review of #traderchecklist Instructional DVD by @timothysykes Chapter 3

Click here to get Timothy Sykes Trader Checklist 100% for FREE.

technical

Table of Contents for Review of TraderChecklist

This chapter finally starts getting into some pretty decent nitty gritty of trading. It starts out with some basic technical analysis training. Which while somewhat basic is very useful education for newer traders. While technical analysis is by no means a silver bullet every trader at least needs to be able to quickly recognize key levels. Especially multiple time frame support and resistance levels. For a lot of us that have been around a while it is second hand to pick them out. But as a new trader you HAVE to be able to see these patterns and price levels.

The majority of this chapter is based around charts Sykes has traded in the past. Tim gets pretty in depth and recaps each one of these setups and how he traded it. He has always impressed me with his ability to remember specific tickers and the trades he makes. Unless I write notes down I can’t remember how I traded a stock 2 days ago much less 2 years ago.

Tim also begins to discuss a lot of trading psychology such as never believing the herd and only trading price action. As well as a good discussion of FOMO, which is one of the biggest and hardest vices for new traders to defeat.

“Trade the price action, ask questions never” – Tim Sykes

The recap for this chapter is a little shorter since you really need to see it to get Sykes thoughts on each chart. Also if you are curious the tickers he covers I go over them all below.

Notes:

Charts intro
     -support/resistance breakout/breakdown
     -Simple but effective chart description
Example charts, wedge etc.
Basic description of buying breakouts and selling breakdowns.
Cup and Handle
     -messy
Recap of TOPS
Low float discussion
Use chat/alerts for trade ideas, NEVER follow alerts or other traders
     -think on your own/be self sufficient
XXII recap – breakout explanation
Beginning of “earnings winner” description
Penny stocks, NEVER try and buy breakdowns, most low priced stocks never come back.
     -Can work with real stocks
$KONE – low float, squeeze setup
“Trade the price action, ask questions never” – Good quote
Most penny stocks are junk that is fine, but the price action is what makes them traceable.
Recap of more low float runners/charts
$VLTC – Recap of big move then breakout over NHOD
Discussion of watching multiple time frames
$SPU – recap
Good discussion of FOMO and why it is tough for traders.
     -focus on just the best plays
$ESI morning spike and late day push example
     -Research Float/market cap etc, not covered here.
$YOD recap
Recap of Seeking Alpha and the history of it, then the failing of it as a catalyst – adapt.
$GRNH – Weed stocks
     -Men’s Journal interview NOT Men’s Health
Be willing to adapt and go long or short and change even during the same day.
Figure out what works for you, study and paper trade till you find it.

Review of #traderchecklist Instructional DVD by @timothysykes Chapter 2

Click here to get Timothy Sykes Trader Checklist 100% for FREE.

Chapter2

Table of Contents for Review of TraderChecklist

Another solid chapter, but much like Chapter 1 there is a lot of preparation and setup in this chapter. Sykes starts out with a solid breakdown of CAN SLIM and how it inspired the Sykes Sliding Scale. It was pretty interesting to hear him describe CAN SLIM and make analogies to his own acronym weighting system.

Some funny anecdotes about Sirius and other stocks with tons of bagholders. But useful in that Tim makes the point that these traders and investors all had no “system” and traded all on hope. The best way to get destroyed in the market is to trade on hope and not have some sort of trade plan.

Beauty of the Sykes Sliding Scale (SSS) is even if it is not perfect (which Tim points out it isn’t) it creates a framework and methodology for approaching trades. One of the biggest problems for any traders, myself included, is over trading. By having a set of criteria that keeps you out of mediocre trades your potential for success is greatly heightened.

The chapter finishes up by beginning to describe the “P” in SSS, which stands for Pattern/Price. The last 10 minutes really starts to get into the “meat” of the info and wraps up by teasing “Patterns” in the next chapter.

I highly recommend NOT skipping any content but it is nice to be past all the background and setup info and getting into the real content. Of course like any class, you have to have the obligatory “meet the instructor” and “syllabus” day. As I mentioned in Chapter 1, Tim does a good job of doing all of this quickly and in an interesting manner.

Really looking forward to Chapter 3 and the rest of the course!

Notes:

Breakdown of CAN SLIM
-Summary slide
-Next specifics slide

Sirius – Stock Shock documentary

RSI – Quick breakdown

LX21 – Quick Bio and profit.ly chart
-Star rating system

Intro of the Sykes Sliding Scale (SSS)

Breakdown of PATTERN acronym
-Pattern/Price
-Risk/Reward
-Ease of entry/exit
-Past performance
-A “at what time of day”
-Reason/catalyst
-E – Environment
Varying weight based on criteria
-Scale of 0-100
Not an exact science, like CAN SLIM it is a method/workflow
-You will not win 100% of the time, but you can gain an edge with a method
Good to have a method/system to avoid overtrading.

Good discussion of the evils of overtrading

SSS – Early stages MS/DOS analogy – further refining coming

More indicators the higher potential for success and avoiding overtrading

Breakdown of “scoring system” on each criteria

Higher the score, more aggressive/paitient with position

Different scenarios based on scores

“Goal is to be better prepared on every trade, that leads to higher odds of success”

“Open Sourcing” (SSS) modify/extend etc. (trader checklist.com) always free

Detailed discussion of “P” Pattern/Price
-avoid chop
-Be agile, able to go long and short
-recognize patterns/repeat
-MTF breakouts/breakdowns

Critics criticize trading “gimmes” but thats the goal of SSS, find and trade only the layups.

Even almost 20 years later, simple patterns still work long and short
-technical scans pick these up

Avoid sideways chop at all costs.
-mid range action

Not all breakdowns/breakouts continue, cut losses quickly and trade your plan.

Description of 4000+ video lessons on Profit.ly

Next up Patterns

#traderchecklist Instructional DVD by @timothysykes Chapter 1 and TOC

Click here to get Timothy Sykes Trader Checklist 100% for FREE.

Checklist

 

I’ve done a lot of these reviews of trading instructional materials through the years and while I hope these recaps offer value and are useful to anyone that stumbles across them. I mainly do them to enhance my learning experience. Forcing myself to pay attention and take notes is a simple way to get the most out of a video instruction. Like many I struggle with “Internet ADD” and it can be easy to jump around to twitter or other stuff, I recommend forcing yourself to unplug and take notes.

So after that introduction I’ll move on to the review and recap of Chapter 1.

To be honest this might be the best opening chapter Sykes has ever done. He does a great job of succinctly giving his background and history. As well as some media appearances and other bio type information. Of course there is also the necessary legalese disclaimer stuff. But in contrast to some of his older materials Sykes gets right down to business and doesnt ramble on too much about the past. Sure it’s useful to understand where he comes from, but we want to learn how to trade or get better at trading not a history lesson. The first half of this chapter was well balanced in doing all the necessary setup material without dragging on to long.

The second half goes into the philosophy behind the Sykes Sliding Scale. Not a lot of detail, of course that will come later. But I was curious and intrigued by Sykes taking the CAN SLIM type methodically and adapting it to his breed of low priced stocks.

Not a ton to go over since obviously it was just the intro, but check out my notes below and keep an eye here for further chapters. I plan on rolling through the viewing pretty quickly.

Thanks

P.S. If the bulleted list above is not fully linked, just know you arrived here before I completed all the chapters. As soon as I write a review I will link up the TOC.

Notes:

Intro
Bio
Disclaimer
More Bio and History
     -Media appearances
Gritanni background
More media
Good description of the validity of “penny stocking” for small accounts only.
Profit.ly chart
Profit chart breakdown – historical
More profits breakdown, discussion of small account trading, PDT etc
James Altucher endorsement of Sykes
What makes a successful trader?
     -Good list
NOT GAMBLING
Patience is everything, in learning and waiting for trades.
Treat trading like a business, take it seriously.
Location independence.
Nothing wrong with being wrong in trading.
Informational inefficiency in penny stocks – take advantage of it.
Preparation is key
Small profits add up.
Trade scared and cut losses fast.
No profits are guaranteed.
Trade volatile low priced stocks but be quick.
Risk management discussion
Brokers – E-trade and Interactive Brokers
Wash rinse repeat the same patterns and trades.
     -Don’t believe the hype, just trade the price action
Be agile/adapt – long/short, day/swing
STT – Paper Trading – get comfortable
What makes a successful trader – line up indicators on each potential setup
     -never trade on “gut” or tips
Have a “system” like trader checklist.
    -Reuse and learn from this system, modify to your needs
History and description of past training materials
Penny stocking adaptation of CAN SLIM

Project Murph – Day 1

Well I’ve posted here and there about wanting to complete Murph once a week leading up to a Sealfit Kokoro even in the spring. Big Hairy Audacious Goal for sure. But I’ve lacked any sort of fitness project for quite some time, so excited to have something to work towards.

Biggest issue right off the bat is gonna be bodyweight and pull ups for sure. I don’t distance run that much but I’m not concerned about the 1 mile runs. And I can do pushups and squats all day long 50-100 reps at a time. My strength level at the pull ups is ok, but I need to specialize on increasing strength in them.

But I don’t see being able to do 100 pullups for any sort of decent time at my current 184 bodyweight. So my interim goal is to drop some bodyfat. I’ll use and blog about various techniques, including:

  • Running a mile each morning (probably worthless for fat loss, but I need to get better at the one mile run, and any extra activity is good for weight loss)
  • Ketogenic diet, bulletproof coffee etc. Basically super low carb, high fat, which is my preferred way to diet anyway.
  • No alcohol, if it weren’t for quite a few beers each week I think I’d be in Ketosis most days. This is an easy way to ditch a shit load of carbs and sugar in one step
  • Tabata’s as conditioning, probably mostly on the Airdyne
  • 300/8 Sprint workouts, I’ll detail this in a post
  • Barbell Complexes

My goal is to be 175 pounds in a couple weeks. I have a pretty active metabolism so once I clean up the diet I don’t see any issue. I’ll be tracking and logging pull ups closely, and training them during the day starting with sets of 4. My goal is to “grease the groove” by doing them all day long.

School Charity Project work with @timothysykes

The inspiration for this post came from many areas. But after finding out that Tim Sykes was working with some third world school building charities, I thought I’d highlight these projects. My interest comes from many areas considering these projects touch on so many of my core passions. Trading, construction, charity, youth and education.

Before going into the coverage of these projects and my involvement, keep in mind I did a full very detailed review of the trading education product that was used to fund both of these projects. Tim Sykes came out with “How to Make Millions” trading course and if you are interested click this link for tons of info. With this introduction to stock trading course Sykes has raised over $1,500,000 to date, all of being allocated to charity.

First off Sykes has a long involvement in charity projects going back to his college days at Tulane, considering he was funding scholarships from his dorm room I was not that surprised when I saw on my social feed that he had decided to allocate some of the proceeds from his charity DVD towards constructing third world schools. I have long been a follower of Pencils of Promise and Adam Braun, though I have never pulled the trigger on getting involved I have great respect for what these charities are accomplishing.

check

Great thing is now through my relationship with Tim Sykes I will be able to help in a REAL way with these projects vs just sending a check. After complimenting Tim on his large donations to these charities I almost jokingly asked if I could go on a site visit with him and potentially actually swing a hammer or help in some other actual boots on the ground way. Tim quickly replied and said “Sure come along this fall and spring to visit Laos and Cambodia and we will see what you can do.” While I am unsure how much help I will be allowed to give, just having the opportunity to help out on a project like this in a physical way is very exciting to me. Not to mention just having the opportunity to visit and see the children and communities is greatly inspiring to me!

cambodia

At this point in the summer of 2016 Tim has funded two school related projects:

$50,000 donation to the Cambodian Village Fund (1 School)
– $120,000 to Pencils of Promise in Laos (2 Schools)

There is no doubt Tim Sykes is an “aggressive internet marketer” but it is 2016 and my social feed is full of guys selling products online, and I purchase many of them. But I have not seen any of these others create a product where 100% of the proceeds go to charity. And if they have I’m confident none of them have contributed close to $200,000 to make some of the poorest and neglected areas of the world better.

Its cliche but children are our future, and thanks to the internet, children anywhere in the world have a legitimate chance to the the next Steve Jobs or Elon Musk. IF and only IF they are given an education. Everybody likes to bitch on social media about what a fucked up world we live in, but $200,000 spent in a third world country to help 100’s or maybe 1000’s of children is a very real and substantial way to change the future.

Altering your profile picture or pissing and moaning on social media won’t do a damn bit of good in the end. While in the grand scheme of things its a small project Tim Sykes is making real change in the world. And something like building schools is a force multiplier. The potential for good to come out of these and future products is beyond exciting to me. And I thank Tim for the opportunity to help and can’t wait to visit and work on these projects!