Tag Archives: How to Make Millions

Final Wrapup Review of How to Make Millions – DVD Review by @timothysykes

Link to purchase “How to Make Millions” DVD by Timothy Sykes

 

How-to-make-millions

Link to Table of Contents

Final Review:

This will be the final recap and review of Tim Sykes How to Make Millions DVD series. Keep in mind this is only the summary, in this series of posts I go through chapter by chapter with a relatively high level of detail. I also give a stream of bullet points detailing what each chapter is composed of. Just keep that in mind that this post is not the complete review. If you want all the detail and are on the fence about purchasing, go through the full series of posts.

I mention in the introduction that I have viewed lots and lots of trading DVD’s through the years. Some good, some ok and some decent. Sykes past DVD’s have been all across this scale, many very good, one maybe two kinda bad, and several right in the middle. This DVD I can honestly say is his best, ESPECIALLY for new or beginning traders. The content is great and comprehensive and pretty well organized. Plus when you factor in the low price and 100% of proceeds going to charity the value is ratcheted up considerably.

While trading “gurus/furu’s” (I hate this term BTW) and trading DVD’s get a pretty bum rap on the internet especially twitter. In my opinion there really is no better way to learn for the beginner. I go back to the first time I viewed Sykes Pennystocking I DVD in 2007-2008 I think. It was a mess production wise, bad/no editing, rambling and disorganized, but I STILL learned sooo much and truly considered it instrumental in improving my trading, especially in relation to short selling. Now sure you can probably find a majority of this info free on youtube, that’s what most the haters will say. But you will spend countless hours trying to find the right content, then hopefully it is actually useful and the presenter doesn’t make you want to gouge your ears out. Video learning is the future, you could easily buy 10X the amount of trading books from Amazon, spend 100’s of more hours reading and STILL not learn REAL WORLD what Sykes teaches in this DVD.

Sure will 20 year veterans of trading say “It’s basic” but where the hell are you supposed to start if you are new to trading? Other haters will say “Don’t learn from Sykes he’s just a Furu” but ONE HUNDRED PERCENT of this DVD goes to charity. Jealous losers will reply “All this can be found free on the internet.” As I mentioned above, good luck wading into those weeds and losing your eternal soul to trying to find all this info organized in one place, all you have to do is click play.

In summary, if you are a new trader, I really am not aware of a better value to get started in trading. Will you be able to “Make Millions” after watching this DVD, maybe but its a longshot. But can you take the first step towards become a Consistently Profitable Trader and start expanding your skill set to some day in the future “Make Millions”. Yes this DVD is a very solid first step along the road to the success.

How to Make Millions – DVD Review by @timothysykes Disc 13

Link to purchase “How to Make Millions” DVD by Timothy Sykes

How-to-make-millions

Link to Table of Contents

Review:

This chapter is listed as “bonus material” So it is just a kind of catchall of random video clips. good stuff though I had seen everything already. A lot of these clips are available on youtube. The best quality content is for sure the Roundtable Q and A from one of the Pennystocking conferences a few years back.

This roundtable is composed of Nate (@investorslive), Gregg (@LX21), Paul Scolardi (supertrades) and Sykes. There are some solid questions and great answers, as well as some funny clips and discussion. It’s cool and interesting to see all these guys in one place and hear their unique spin on things. I did attend this conference so I had already seen this before. But if you have not it’s a must watch and worth the time.

While the actual education in this chapter is a little light, it’s a fun light hearted chapter that does a good job of ending the package on a fun note.

Rating: 2.5 out of 5 (Only rated this low because the actual actionable content is light, though the entertainment value is high.)

Notes:

Bonus materials

Harvard speech good, but also on youtube

Q and A with traders from 2010ish
-Nate
-Greg
-Tim
-Superman

lots of random questions but quality content
Level2 commentary
refresh buyers and sellers
OTC vs nasdaqs
Try and figure out which market makers are retail and which are institutional
you can swing and dayrade but don’t let one turn into the other.
definition of parabolic]

Wait for the best setups

Mansion tour – also on youtube

Maldives video with Grittani

Lots of Grittani highlights/news etc

No sorry no cry music video – classic

Bali video

How to Make Millions – DVD Review by @timothysykes Disc 12

Link to purchase “How to Make Millions” DVD by Timothy Sykes

How-to-make-millions

Link to Table of Contents

Review:

Hoooo leeee crap! This chapter starts out with an introduction by Sykes of Gregg aka LX21, then goes into Gregg’s presentation from a couple years ago at a pennystocking conference. This was from one of the couple conferences that I have missed, and wow am I pissed I missed it 4 or so years ago. I’ve seen other presentations and interviews of Gregg through the years but I have never seen this one and I can honestly and wholeheartedly say this is his best.

Beyond @Epicacapital ‘s speech at the first Traders4Acause this speech by Gregg is the most inspirational and educational piece of trading wisdom I have ever seen. Not sure what your budget is but if you are a serious trader, I really think this whole $297 package is worth it to hear this speech by Gregg. WATCH THIS speech again and again!

The middle third of this chapter is a presentation by me from I think 2009. While there are many things I would improve on and change if I presented the same speech today. I do feel I did a decent job explaining the concept behind being a “Part time trader.”

The chapter ends with a solid review of the whole DVD by Sykes. He does a solid job of tying up loose ends and reviewing the most important concepts and theories behind the DVD and his trading style.

Shit, I’m about to give this chapter the highest review of any of the chapters, which fucking sucks because I’m in this chapter. Grrrrr…. Please know my rating has NOTHING to do with my presentation. Between Gregg knocking it out of the part and Sykes being on point and concise, you could strip me out and this would still be the best chapter of the whole DVD.

Rating: 5 out of 5 (But that rating is entirely based on Gregg and Tim)

Notes:

LX21
-Profit chart breakdown
-Hard working and focused and disciplined
-Market wizards books
-Presentation
-History
-Funny story of high school stock picking contest
-Cool boiler room story
-Nice Baron Kimble reference!!
Poker
-understand the other side, your opponenets
-money management skills
-Think about odds and probabilities
-observe and interpret
-when odds are bad fold, when odds are good add, when odds are great attack

Do not try and predict, think in terms of probabilities

Trade Process
-Be immersed in the language of the market
-Create a context
-why is it up
-sentiment
-use the chart and put it in context
Rating system
-1-4
-Low rated setups gobble up time and buying power. and end up making you miss high rated setups
-Want to win at trading, be selective trade when yo know you are right.
-avoid boredom trading
-as a trader your job is to be paitinet

Exit when the thesis is no longer valid
Clear you rmind
-If I didn’t currently have a position what would I do here?
-no rationalizing
-say it loud
-Large part of profits are not determined by the strategy but by the trader.
-Need to master your own mind.
-Be an objective observer of yourself – be brutally honest

-Biases
-blind spot bias
-confirmation bias
-indicators/time frames
-sunk cost bias
-Hind sight bias
Confidence/over confidence

Tyson/Buster Douglas
-didnt train/prepare like he needed to

Confidence vs conviction
-follow your plan even if you confidence, but maintain conviction

Blowups
-addictive trading
-trading too big
-making back losses
-poor money management
-a trader must assume full responsibility for anything that happens – Extreme Ownership
-Expect the unexpected
-A professional is someone who makes a living practicing his craft.
-Train like a pro
-Act like a pro
-little things make a difference, professionals sweat the details
-Sleep right, eat right, exercise keep clean
-FOCUS!!!!!!!!!!
-no email, social networks, other bullshit
-Work like a pro

Presentation of me – I skipped it and won’t take notes.
-But I do think it was a solid trading presentation.

Summary
-get motivated
– need to learn
-set big goals and work your butt off to achieve them
-have patience to endure the journey
-remember the biggest gainers list is what you need to watch
-take the meat of the move
-as a beginner focus on developing rules and practicing good habits
-the same rules and habits that make you 10K will make you 1M
-again 1000*$1000=1m
-dont trade random stocks, just the volatile ones
-Sometimes the best trade is no trade
-Never bet anything or leverage up don’t risk disaster
-be able to go long and short
-Keep your size under control and keep yourself comfortable
-Cut losses quickly
-take it one trade at a time
-Promotions/deals etc

How to Make Millions – DVD Review by @timothysykes Disc 11

Link to purchase “How to Make Millions” DVD by Timothy Sykes

How-to-make-millions

Link to Table of Contents

Review:

Going to be another quick review of this chapter, again like the last chapter it is composed of a couple webinars plus some detail from Sykes in the middle. While I am going to be quick in this review it does not in any way indicate that the chapter is lacking in content. I simply think that it needs to be viewed to be appreciated.

This segment starts out with Gritanni’s presentation from the Pennystocking conference in 2014, I really appreciated it and enjoyed it, because I was at a different event during Gritanni’s presentation this particular year so I missed this. Gritanni does a very solid job of describing his history as well as his style. Plus he details some of the very detailed ways he tracks performance. He also goes over one of the best tips I have ever gotten from him, the idea of hiding your P/L. It seems odd but as an active trader you really need to focus on the chart not your P/L. Of course you can’t let losses run away from you, but at the same time, if you are a technical trader, which most day traders are, you need to let the chart tell you when to exit, not your P/L. Good stuff.

The middle portion is composed of Sykes going over some of his more successful past and present “students”. This is useful to someone new to trading just to see what is possible in the world of pennystocks. No real education here, but it is for sure motivational.

The last part of the chapter is Paul Scolardi (Superman) giving a presentation about his history and style. Very useful education if you are more of a swing trader, plus it’s a fun presentation. Paul is a very boisterous guy and fun to listen to speak.

Rating: 3 out of 5 (The content from Gritanni and Superman was very useful, but I marked this chapter down because the middle third by Sykes just felt like “filler”)

Notes:

Gritanni from 2014
-Back story
-Why was Gritanni successful
-right broker
-liquid volatile stocks – don’t need perfect trades
-focus on a niche
-Cut losses intelligently
-Volatility
-Dont need to be perfect, can catch the meat of the move because of range.

-Find and focus on your Niche
-Migration to Nasdaq’s from OTC
-diminished value of L2
-Short big runners

-STAY FOCUSED
-Dont follow others
-Don’t compare yourself to others

Assume EVERY OTC is a short

Marijuana Craze

Watch for active sectors

Listed stocks

Hide unrealized P/L and just trade the chart

Cut losses intelligently not necessarily quickly, thought they may be the same.

difference between smart and stubborn

Nasdaq scanner
up 15%
total trades < 3000 price < $10 Good Q and A especially on position sizing and scaling in. Eric Wood -Great trader but Sykes and him don’t get along Ivan -Background -Primarily shorts pump and dumps Azimjon -Intern -Named his son Timur (Tim) -200K in profits started with $2K Mark Croock -Moved from cubicle life into trading -Croock Presentation -background -I love Mark but his public speaking is hard to watch.. -He know his stuff though and good content. Superman -Swing trader -Finds momentum before it happens -Former CPA -Emerging markets -Presentation -Funny story of Super being “pumper” and his history -Good breakdown of how to trade low floats -

How to Make Millions – DVD Review by @timothysykes Disc 10

Link to purchase “How to Make Millions” DVD by Timothy Sykes

How-to-make-millions

Link to Table of Contents

Review:

Gonna run through this review pretty quickly, I’ve got errands to do later and the market appears to be falling apart right now (9AM January 15th.). But if you are curious what is in this chapter check the notes below, I think I do a very solid job of breaking it down and logging.

This chapter is composed of two presentations, one my Michael Goode (reapertrades/goodetrades) and Tim Gritanni (kroyrunner89). Both of these speeches are VERY valuable, Tim and Michael are both great traders and you can tell they put a lot of time and thought into these presentations. The one criticism would be neither of them are “Steve Jobs” level presenters. BUT that is just being nit picky, they are both borderline “genius” traders so even though their presentation skills aren’t next level, the content is.

90% of the content in these speeches is useful and actionable. Great chapter.

Rating: 4.75 out of 5.00

Notes:

Michael Goode
-Introduction
-1st millionaire student
-chat moderator
-2014 Presentation
-Personal history
-Breakdown of performance based on promoter
-How to define a potential trade idea
-Citron/Hit Pieces
-Check for changes apps
-FDA
-how to scan for changes on site
-form submit, but you can write code to check
-ARCA
-OTC
-Retail
-Trade Busts
-Interesting story on LEXG
-Trade tricks on IB to get shorts
-GTC orders
Good real world/backend trading info
Halt explanation/breakdown

2011 Presentation I think
-Super Secret Strat
-Good work ethic description
-devil is in the details
-Good mentality and thought process discussion
-Try and understand what no one else understands
-Trade the news
-Hoe to locate this stocks with news
-update patrol and other apps to check websites for change
-Good scaling in discussion going in harder on your best setups
-Options discussion

Grittani
-background from Sykes
-profit chart
-Presentation from Grittani
-Back in the OTC days
-Level2
-History from Grittani
-Lots of good examples
-Best lesson, just catch the meat of the move and not try and catch tops and bottoms
-Lot out of date because of pumps not as active and halts and OTC’s not as active
-As a beginner control your size

How to Make Millions – DVD Review by @timothysykes Disc 9

Link to purchase “How to Make Millions” DVD by Timothy Sykes

 

How-to-make-millions

Link to Table of Contents

Review:

Good news for the followers of this series of posts! This review will be brief. Since this chapter is kind of a wrap up of loose ends it is only an hour long, vs most of the chapters being 3 to 3.5 hours long. That being said it may be short, but it was solid. There was a lot of commentary on mindset and planning which I always find beneficial.

The chapter begins by wrapping up the last segment. More discussion of shorting non pumps and hot sector plays like bodycams and ebola. Tim spends quite a bit of time breaking down and analyzing $ISNS.

After that Sykes goes into some random but useful items that shape his trading, primarily his “simple” focus. I agree with most of these ideas and concepts. Often so many traders try and use tons of different tools, crazy PC’s with ton’s of monitors, all kinds of indicators and trade way too many stocks. Tim details his simple one monitor laptop and desire to be in cash as much as possible, only trading when the best opportunities show up, and even then taking 1-2 positions max.

“Treat trading like a journey. No one trade will make you a millionaire but one bad/terrible trade can crush the journey.” – Tim Sykes

Last part of the chapter is based around having a growth mindset and the ability and desire to constantly adapt and change to the current trends in the market. While quick this was a VERY good chapter. I’ve mentioned it several times in this reviews, I think some of the “mindset” and planning side of things are the most valuable skills for the new trader to learn.

Rating: 4.5 out of 5

Notes:

Continuation of shorting non pump’s
Ebola plays
-VSR
-IBIO

Body cam Plays
-DGLY
-ISNS

Long breakdown of ISNS

Strategy
-Simple setup one laptop
-1-2 stocks max
-100% cash most of the time
-always looking for trades but not looking to trade all the time.
-focus on one trade at a time remember 1000*$1000=$1M

Treat trading like a journey. No one trade will make you a millionaire but one bad/terrible trade can crush the journey.
-NEVER bet/risk disaster

Never trust failed breakouts and breakdowns, play defense

Aim for the meat of the move.

Scan for percentage gainers over all kinds of timeframes

Always write a plan.

Constantly learn and grow – stick to a plan – stay disciplined and focus on overall goals.

Brokers list

How to Make Millions – DVD Review by @timothysykes Disc 8

Link to purchase “How to Make Millions” DVD by Timothy Sykes

 

How-to-make-millions

Link to Table of Contents

Review:

Lot’s of trade recaps and breakdowns this chapter. Sykes starts out with a continuation of the discussion of $CUBA from the previous chapter. Useful explanation of the downside of forcing a trade. The chart was up big but Tim was early to enter and short on time. Worst thing you can do is force a short on the frontside of a move. But it can be a true test of discipline, especially when you have to leave for a while. So many times, and its frustrating, you skip a trade then come back at the end of the day and see you would have been up big had you taken it. But the flaw in this logic is you will ALWAYS remember the big profits you missed. But I can say this from TONS of experience, you NEVER remember the ones that would not have worked out. I have stewed for days, weeks, months on missed profits. But never gave a second thought to missed losses. Kind of difficult to explain but you truly need to have the “defensive back” mentality. Know there will always be another play/trade, and focusing on the ones you missed is pointless and purely detrimental.

After $CUBA, Tim breaks down, $MDBX, $GRNH, $LAKE etc. Very useful for a beginner to see someone with experience think out loud and detail the breakdown of entries and plans. Also useful to learn about hot sectors in pennystocks and why they are always the best trades, whether long or short, focus on the hot trend of the day.

The second half of this chapter is a live webinar by Tim Grittani @kroyrunner89. I assume that anyone reading this or checking out How to Make Millions is familiar with Tim Grittani. If you are not, take a moment to Google him and do some cursory research. Grittani is truly the “perfect” example of what is possible with penny stocks. Grittani is probably the best “rags to riches” penny stock trader I have ever met. That being said keep in mind to do what he did is damn hard and approaching impossible in the time frame that he accomplished it. BUT that does not mean you should not aspire to what Grittani has accomplished. He is a great, humble and just all around cool dude. He deserves all of his success and should act as an inspiration to each and every beginning penny stock trader.

I won’t go too in depth on the webinar since it really should be watched to get the best of it. Just know that Tim goes over big losses, recaps trades, details his process and does a great job of hosting this webinar. Probably the only complaint I would offer is there is a lot of discussion of trading promotions which as I’ve mentioned are basically dead as of today (January 2016). But of course there was no way for Gritanni to know this at the time of the webinar. But I would still watch it and pay attention, I’m confident paid promo’s etc will come back some day.

This chapter wraps up with Sykes discussing more short selling mechanics. As well as explaining why shorting on Friday’s and holding over the weekend is dangerous. As well as a good explanation of the fact that 99% of penny stocks will fail, but as a short seller you need to realize it may not happen on your timeline. You can be right a significant amount of time as a short seller but still go broke. For the newbie I understand this is confusing, but Tim does a decent job explaining it.

One of the shorter chapters, but that was refreshing, it moved along quickly and Gritanni did a great job with his webinar which took up probably 65% of this segment.

Rating: 4 out of 5 (Mainly due to the refreshing break from Sykes and Gritanni’s different perspective)

Notes:

Continuation of CUBA from Chapter 7
-Post mortem after the fact a year or so.

Post Mortem on CUBA right after the fact going over big loss – too early on short
-Good discussion of “forcing” a trade with time constraints
-quick trade before leaving etc
-doubling down/adding to loser – BAD
-intersting use of a timeline via live chat with broker

-Elaboration on getting to big in size and “panicking” because of being to big
-Poor management of a trade. Instead of cutting loss, adding to a loser WORST THING YOU CAN DO

Review of trades from Profit.ly on CUBA

Dividends – shorts have to pay, normally not an issue since crappy penny stocks don’t pay dividends.

MDBX
-Marijuana stock from $10-$90 in less than a week
-Crack in one day from $90’s-$70’s
-Small size only 500 shares but $3K profit

GRNH
-Good parabolic/supernova example
-$0.10-$1.00
-another marijuana stock
-Good example of taking a small portion of a move but netting solid profits
-Another example of “getting to big” you will cover for small profits if you have too much size
-First red day example – for multi day trade
-Good examples from other traders both good and bad

LAKE
-EBOLA play

Quick cut to Grittani (Kroyrunner89) Webinar –
LAKE loss
-Bouncing back discussion
-Recap of LAKE
-discussion of entering then being patient with adds instead of getting aggressive on adds
-Low Float (Float Rotation) on volume
-discussion of “going on tilt” then taking time off
-“Making money back/grudge trading”
-GRNH
-SIMH – low float – float rotation
-Another sizing in too big mistake
-TRading is stressful and challenging, great value in taking time off.
-VOIL
-CDTI
-SOPW
-VPCO
-Starter size /entry discussion
QandA
-Order entries – auto entry
-Pain question about losses, early vs now
– Goals

-YOD – good breakdown
OTC’s after-hours
-GERN
-Discussion of the “good old days” of promotions
-OTC’s dried up – lack of promo’s
Process
-Start with daily chart
-wait for trade to come to you
-Green to Red shorts are tough on Nasdaq’s
-Risk to reward planning discussions
-NOthign wrong with adding higher as long as thats the plan, don’t let the plan slip
-Stocktips/promo discussion

Back to Sykes presentation
-Nothing wrong with trading non pumps, but need to be careful
-Always be careful on Friday’s and avoid holding over the weekend almost always.
-Recap of LAKE other traders Grittani, Goode etc
-Remember these stocks will almost always pull/fail, but just NOT on your timeline.

How to Make Millions – DVD Review by @timothysykes Disc 7

Link to purchase “How to Make Millions” DVD by Timothy Sykes

 

How-to-make-millions

Link to Table of Contents

Review:

This chapter begins with a recap of a couple of Tim’s trades, YOD and CNTO. Good and useful info, lot of discussion of the YOD “Seeking Alpha pump”. Seeking Alpha still moves stocks but it is not as hot as it was at the time Sykes recorded this chapter. For a while, maybe 6 months or so, Seeking Alpha was where it was at for long and short plays. But again this is useful to learn that there will always be “pseudo pumpers” and bashers. Even if true paid promotions are not as active as they used to be, there are tons of blogs, twitter accounts and message boards that can move stocks up and down. So it’s good to know that this “indirect manipulation” is still very tradeable.

Maybe a little too much time spent on it but good explanation of why and how halts happen. Good to know as a newer short seller how a halt affects you. Sure most of the time the stock will tank but if you have a large part of your account tied up you may be only able to trade small or possibly not at all until the stock unhalts. So this recap of CNTO is a good lesson.

Nit picking a little but more repeat of EKSO and CNTO, I think it is partially valuable especially in a course this long to double back and repeat. But again I know these trades inside and out, hearing about them over and over gets a little old for me.

Next up is some very detailed instruction on how and why to short pump and dumps and why it is such a high percentage play. Even if most penny stock traders will very seldom be long term shorts Sykes does a solid job of explaining that NO penny stock can be trusted, but doubly maybe triply so for paid promotions. 99.99999999% will fail.

While shorting pump and dumps has a lot of mechanical pains in the asses to it, Tim next covers how to go long early in the promotion or pump. Reminder that a lot of Tim Grittani’s huge early success came from buying into these promotions. But you need to learn to never believe and/or HOPE that the story will last long term. Or even at all, no matter what the paid promotion or article or whatever it is, if the stock is not moving, DO NOT TRADE IT.

“Every penny stock has an amazing story, but only stocks that are reacting with price action are worth trading.” – Tim Sykes

Next is more live trading on ECAU and GNIN, pretty wild to see those long term charts. But while many “guru’s” will brag about the fact that a stock went from $4 to $0.0001 Tim does a solid job explaining that there is no way you would be able to hold short for years to ride a shitty stock all the way down. You need to take the meat of the move.

One of the better and more memorable segments of one of Syke’s presentations from a pennystocking conference is the next module. Tim is fired up and funny going over a complete POS pump and dump but it very quickly devolves into a Matt Foley like success motivational speech. It also includes one of the classic Tim ranting moments when he throws his Rolex against the wall. Funny and entertaining even the second time since I was there live.

The last part of this chapter is probably the best. A very detailed and well broken down discussion of “sector rotation” in penny stocks. There is almost always some hot trend in pennystocks. (Body camera’s, Ebola, Marijuana) etc etc. And as a penny stock trader whether long or short you need to know what the hot trend of the day is and be ready and willing to buy when its new and get short when the hype fades or moves on. These hot sectors are for sure the best opportunities in penny stocks today in 2015-2016.

Very solid chapter with tons of great info.

Rating: 4 out of 5

Notes:

YOD
-Disney contract
-Longer term
-Seeking Alpha – Netflix of China
-Fundamental play
-Replay of webinar on long term picks – audio/video not great.

CNTO
-Short pick after the fade
-Lining up technical’s and fundamentals

Live action of YOD and CNTO, but a lot of just marketing Long Term Newsletter

Discussion of random “real stocks” big names – small range
-Why penny stocks are better
-EKSO

To much repeat discussion of EKSO and CNTO from earlier chapters

“Every penny stock has an amazing story, but only stocks that are reacting with price action are worth trading.”

EKSO – Long
CNTO – Short

Discussion of not trusting promoted stocks – look to short them.

Explanation of CNTO halt and following gap down

Rules for shorting Penny Stock Pumps
-Look for promotional/mailers chat rooms etc.
-Promotions can last, don’t short right away
-if you are quick you can go long, but need volume and price movement
-need to be fast/early
-when volume starts to fade and promotion ends, the stock will fade/crack
-stocktips.com discussion, but promoters always change/move around.
-wait for weakness/backside don’t short frontside

As of today 1/1/2016 pumps/promo’s are not as frequent as when this chapter was made.

No problem being wrong on a short (or any trade) but cut losses quickly. And revisit.

Shorting pumps sounds great, but so much risk and high costs to try and hold long term.

Keep in mind whether you can re-short or not – sometimes its better to hold because you will not be able to get shares again.

Halt description/explanation – USUALLY holding short into a halt is huge for short sellers. But can tie up your money for a long time.

Pumps are high risk to reward but few and far between.

Live trading recaps:

-ECAU
-covering into a morning panic
-Beverly Hills Hotel suite tour – entertaining, but not very useful
-GNIN
-I didn’t remember this ticker, but WOW the long term chart is TERRIBLE.
-good commentary and L2 play by play
-Miami
-to much ranting about subscribing/watching lessons etc
-Watching LEvel2 myself Sykes should have not fully covered. Looked to really crack
-Meat of the move
-Testimonials drag on
-GNIN – amazing collapse for sure

Presentation from Pennystocking Conference – 2012
-Anatomy of a perfect trade
-DOMK
-Interesting to see the news flow/promotion
-Good example of an $AAPL piggyback trade
-useful fundamental analysis/breaking down pump
-Jump to live trading webinar
-drags on a little but obviously need to let the stock crack. useful for new traders to see though.

Challenge/Motivational Speech from conference
-good stuff, Tim does a great presentation.
-the classic thrown Rolex moment
-With Tom McCarthy chasing it down

Shorting non pumps
-shorting higher priced stocks not as explosive but can be more replicable/consistent
-need smaller goals for non pumps. charts can pull but can’t expect huge 50% type gains
-Still predictable downside on shorting stocks that are overextended.
-Exposes/hit pieces are great for higher priced stocks, seeking alpha, citron , muddy waters etc
-DOn’t random short, wait for good entry, parabolic/super nova or some sort of hit piece etc.

Good discussion of hot sectors to buy and short – always cycling
-Featured
-marijuana
-ebola
-Police security

Non pumps need to use technicals/price catalysts
-Green to red
-red to green
-HOD/NHOD
-LOD/NLOD
-SSR
Things to know/understand
-Low float – Yahoo finance key statistics – -Short squeeze
-espeically Friday afternoons
-Month/quarter/year end push
-tape painting window dressing
-january effect
-insider buys and sells
Short timing – 3 times
-into big morning spike
-big potential for gains, but very risky, need a tight stop and SOLID plan
-morning bounce off of lows
-short after huge drop and bounce
-afternoon fade
-HOD reject/fade
-red to green

-Solid risk to reward holding overnight a red stock on the first red day.

Chart setups
-QPSA – MEET
-CUBA
-Good walk through of CUBA trade
-Early short example
-wait for breakdown – LOD fail

How to Make Millions – DVD Review by @timothysykes Disc 6

Link to purchase “How to Make Millions” DVD by Timothy Sykes

 

How-to-make-millions

Link to Table of Contents

Review:

This chapter starts out back into the powerpoint presentation mode by Tim. Which is much preferred to me versus the webinar format. The webinar was useful for live trading and live Level2, but just too distracting. Sykes briefly reviews the $TCCO trade and the webinar then moves back into the pre prepared curriculum.

Another reminder to not just trade news, or earnings or contracts or any fundamental indicator. Only trade these events if the stock is moving. Review of this from previous chapters but it is an important concept. You can waste hours and days trying to trade news that is not moving the stock NOW. First reference (that I can remember) of the snipers code of “Aim small, miss small”. In penny stocks and really any volatile stock there is nothing wrong with catching the meat of the move. If you try and get the whole move, you will experience way to much anguish and ultimately probably end up with a smaller profit than you would have had you taken the quick profit around a certain catalyst and saved the time and energy to look for the next trade.

Tim next goes into a breakdown of a daily routine. I’m kind of a “daily routine nerd” but I think this segment is useful for any trader. It all starts with getting up early and scanning and getting a feel of what is moving and what happened overnight. Also very solid lessons in trying to avoid trading mid day. I will often have trades on during the lull but fight always to not add nor take any new positions between 11-2. Spend this time doing other things, Sykes suggests this as well. Workout, research, run errands or just scan and write plans. I would also add it’s a great time to take a nap or a walk! You can set alerts on your platform and just rest up from the busy morning and get fresh for the busy afternoon. Rest and sleep are often so overlooked in trading. You need tons of discipline and its been proven over and over again one of the single biggest ways to increase your discipline is by increasing or improving your sleep.

Tim jumps back into more scanning and watchlist building, very useful for a new trader. Again a big oversight by newer traders is trying to be a “gunslinger” and just nail trades all over the place. I believe and Sykes confirms in this segment, you need to plan and pick the best stocks to be consistently profitable.

“It’s amazing what a little planning and patience will do.” – Tim Sykes

Last segment of this chapter is an “Introduction to Short Selling”. VERY valuable especially for new traders that may or may not be familiar with selling short. As you get more and more in depth into the world of penny stocks and volatile stocks you will find that some of the most successful traders will be short biased. I have never seen a study or compiled my own statistics, but I simply think that the edge is on the side of the short seller in penny stocks. Sure can you make 300% in a day if you buy the dead bottom and sell the dead top of a POS $1-$4 runner? Sure. But I am much more comfortable and prefer the odds of shorting that same stock when it goes from $3.50 to $2.00.

Tim gives lots of examples of short setups and recaps several trades. There are also some interesting stories about the shady side of penny stocks including a funny penny stock front of a bakery shop. While not necessarily educational I had never heard this story and it was pretty comical.

Overall a very good chapter and high in value for traders that are just getting their feet wet in short selling. Shorting is a difficult concept to explain to a newbie and I think Tim does a solid job of it.

Rating: 4 out of 5 (Good content with some amusing stories, but on topic and focused)

Notes:

Wrap-up of TCCO from webinar
Better recap vs the webinar, good stuff here

Back to slide deck and more “conventional” presentation

Don’t just trade news, need news AND technicals/price action

Don’t scalp, but you can miss small, aim small miss small, but look for “big gains”

Interesting how the “best” trades line up with all the rules/framework
-I’ve seen this myself with my own rules and setups

Get up early and start looking to scan
-use scanners
-use chat rooms
-find whats moving
-check on recent big movers
-set breakout/breakdown levels on these big movers
Sykes focuses on trading in the afternoon
-good idea
-I prefer to put on “starter” entries in the morning then add/get more aggressive in the afternoon

Avoid mid day – VERY MUCH AGREE
-workout
-write
-run errands
-scan/plan

Like the detail hour by hour of Sykes daily routine.

“It;s amazing what a little planning and patience will do”

Create a watchlist organization method, by sector or by price etc. All platforms have a way to run through them. stay organized

Prioritize the most volatile stocks, earnings winners, contract winners

—Intro to short selling

-What is short selling
-Funny graphic trying to explain shorting
-Short selling is the opposite of buying, sell first short later
Short selling terms
-explanantions

SSR – explanation – uptick rule

Margin calls
Forced buy ins

Introduction to hassle of finding borrows to short.

ALFSS
always be looking for shares to short

GTZ
-Good to Zero – holding a stock short until it goes to zero

Stop loss surfing
-Shorting is great into whole and half dollar amounts where longs stops are set then they get pulled.

A stop loss does not guarantee your execution

Shorting involves borrowing, which means you can be liquidated any time.

Need to pay interstate on borrows.

Need the right broker to short
-Usually not the big name online brokers
-Need multiple brokers to find borrows

Shorting junk companies is repeatable and consistent.

Broker List

Commision are mostly negliblle if you are making the right trades.

Commision are not a concern if you make good trades. Routing is pointless waste of time good for fractions of pennies/scalping.

Shorting is inverse sell then buy.

Tough to get a short to go to zero, need to just catch the meat of the move.

Shorting is high percentage, if you have the right entry. Most penny stocks are caracases

In penny stocks the prices of the ticker do not reflect true businesses.

Good breakdown of how promotions work.

NXTH good example of a promotion up every day.

Hard copy mailers
-Paid promotions
Contracts can be shady

Good recap and explanation of NXTH

Stop losses are tough on pump and dumps on the long side, need to take profits quickly.

NO good risk for buying pump and dumps longterm.

Promotions never end well.

Pumps can go long than you think. Tough to short long term.

LEXG classic pump and dump from past
JAMN another classic

WLOC – recap huge pulls

Why do crashes happen?
-Promotions are created to get the stock price up so insiders can sell into it.

Funny pastry shop front to a penny stock – new story for me.

Shorting pump and dumps can be “gimmies” – but not many pump and dumps promotions around anymore.

Recaps of a lot of pump and dumps.

How to get shorts on IB

Part of shorting successfully is having the right broker and being prepared and ready.

Best shorts are supernova’s or dead pump bounces.

Match trades – definition

Lots of charts of supernova’s/parabolics

7 step framework – breakdown/explanation
-more applicable to pump and dumps – old

How to break down a mailer and disclaimers

Female wolf of wall street story – interesting

More setups

How to Make Millions – DVD Review by @timothysykes Disc 5

Link to purchase “How to Make Millions” DVD by Timothy Sykes

 

How-to-make-millions

Link to Table of Contents

Review:

Well so far my reviews have been in my opinion unbiased but glowing. But we have hit our first official bump in the road… This chapter is a pre recorded live webinar focusing on $TCCO. Unfortunately since there is a live chat function in the webinars Tim migrates from being 90% professional in the earlier powerpoint presentations to more of the “stock market showman” in this webinar. The video and audio are very mediocre, and Tim is very “ranty” so the audio is frequently overdriven.

Now that being said there is useful instruction here, Sykes lays out the trade on $TCCO and it was instructional to see him dig through an SEC filing and give his live thoughts as he worked through it. Also some pretty good breakdown of a live feed of Level2. Though again the video is very low resolution so you have to almost fully depend on Sykes commentary because you can barely if at all read the numbers on his Level2 montage.

Some funny stories related to celebrities involved in penny stocks attempting to sue Tim, as well as the first appearance of one of Tim’s favorite anecdotes the “Weekend at Bernies penny stock”.

I won’t go so far as to say this chapter should be skipped, there was good info here, but there was just to much ranting and playing to the webinar crowd to make it as good as the other chapters. Who knows if the first few chapters had not been so solid perhaps I would not be so negative on this one? In comparison to the mostly professional and structured first 4 chapters this was just too random and all over the place. Plus the video and audio just made it a little frustrating to watch.

Rating: 2 out of 5


Notes:

Webinar on TCCO

TCCO why a webinar
-biggest % gainer
-always check them out

WEBINAR VIDEO VERY LOW RES

Sykes runs through top gainers and describes why or why not to trade them. Useful to see the process.

The always classic “Weekend at Bernies” analogy

++ “If a trade is not doing what you want, there is NOTHING wrong with having NO position”

Useful to see Sykes go through an SEC filing

Holiday trading discussion – careful as a short

Dead pump bounce – and shorting

AUDIO VERY Overdriven/loud

Advice on breaking losing streaks
-trade smaller
-take a break
-study
-review your diary/trade log

Always review trades daily or at a minimum weekly.

Some ranting but useful from the perspective of NOT OVERTRADING and forcing mediocre trades.

Funny story about misspelling of “egregious” in Shaq cease and desist order.

Very “ranty” entertaining, though a little limited in value.

Interesting to see live trading, but sloooow, not that interesting of tickers.

Live trading of TCCO
-good L2 commentary
-though resolutions is low so hard to see
-Low float
-Contract winner
-Government/military

Followup the next day on TCCO

Low float stocks with news can be great longs.

HGSH – Recap

ECRY – Recap

Weakest chapter so far, to much randomness and ranting, there was good content, but also too much BS.