Tag Archives: TraderChecklist

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