Timothy Sykes Gives Up Daytrading!

As I have had some seen some unimaginable loses in the stock market in recent months, I have suspended any daytrading activity and am looking for dividend based stocks and ETF's. My goal is move most of my remaining funds to slower growth companies. I also like gold, oil stocks, and commodities. I will be posting my Tireless Research on this blog as usual.

Oddly enough I was amazed to see one of my heros also step out of the market for a while - Timothy Sykes.

Please read the article on below on Timothy Sykes and visit his blog at timothysykes.com:

My last scalp/day trade that is...

Actually made it through pre-market on SOLF to sell my 200 shares at $17.80 five minutes after the open. I wanted to give it a chance to run, but the down market, lack of getting to the key $18 price level and big blocks of sells made me cut this trade short. Even though I only made $10, LOL, the trade is a good one because I let the price action decide my bias and I’ve never gone wrong when I let that happen because after all, you can analyze a company to death, but all that matters for your investment is the price action of its stock—why this simple fact escapes so many people, I’ll never understand.

So, yeah, this was a busted trade, but since I cut my losses quickly (not that I mean I lost $ on it, but meaning this trade was a losing proposition since it didn’t act the way I wanted, aka breaking $18 and squeezing shorts), the risk-reward on the trade was solid and that’s all that matters. After all, if you make 100 solid risk-reward trades, you’ll probly be up, it just takes time as if you’re a casino taking small profits over time.

Several other potential trades today but I took none. The Reason: I rewatched my DVD.

Sure, I could continue researching hardcore and scalping a few times/day all year long, making a few grand, possibly getting to $25k, possibly not, but it would take so much time and effort that it would come at the expense of my life, my publishing company and my ability to help teach others how to play this magnificent game that is PennyStocking.

No. Scalping and day trading is great—if you have the capital reserves and the ability to day trade freely. At TIM’s current asset level, I have neither and won’t for many months or years. And TIM really isn’t meant to teach scalping, while it’s decent money, it’s hard work filled with many disappointments along the way.

I could’ve scalped NYNY today for 20 cents—if I was perfect (and when does that happen)—when it broke yesterday’s high of $1.15. I could’ve scalped COINW for 30 cents when COIN broke resistance today at $9.50 (No COIN available to short directly). Both trades would’ve taken only a few hours, but the watching and waiting for the technical cracks takes ALL DAY. Not for me. Not right now.

Instead I will focus on finding and trading stocks following the patterns that are more reliable, meaning I’ll be able to hold them longer, but since they are “perfect”, that also means they are quite rare—think 1-3/month. These are the plays newbies should be in. These are the plays that I detail in my DVD as these are the plays that created my wealth and are particularly extraordinary because you don’t have to day trade them and you can trade in your spare time, the economy doesn’t matter, earnings valuations don’t matter—it’s simply a waiting game as to when the next Supernova presents itself (then you have to know how to play it based on each opportunity’s variables)

The problem I encounter is wanting to make TIM grow every day, to teach lessons every day, to sell more books and DVDs every day, to quiet the haters sooner rather than later, all the crap that works against successful trading. I don’t know how many more times I’ll have to watch this damn 6-hour DVD course, but it really helps me understand TIM’s mission better. As difficult as it’s going to be to not watch the market every second, I really need to focus on my patience because this few hundred/day (if I’m lucky since I have to be perfect in my scalping), researching like crazy to find potential plays, getting no sleep, writing whenever I get the chance, being a week late answering emails, working on my new site whenever I get a chance, having no life, even at Sundance, trying to become Cramer 2.0 is all crap.

Now I'm just another working stiff, who, while still better than most commentators, is really just writing every day to get more exposure and teach people the hard game that the stock market is.

Screw that!

What's made this game so amazing to me is that when I stick to these amazing patterns , I don't have to work hard, my results are extraordinary and I can rub it in the face of those who have been taught a whole bunch of BullShip! Since I started TIM in November 2007, really only AKNS, COIN and SEED (all of which I covered extensively in posts like this ) have fit the pattern, all the dozens of other trades I've done and articles I've written have been complete crap!

Thank you DVD for helping me realize this. People who’ve already watched it, am I right or am I right? Or am I right? Or am I right?

Good Article on Why Google is a Good Buy in the $500's

GOOGLE MIGHT JUST HAVE THE RIGHT MIX TO DOMINATE THE WEB FOR A WHILE


People have, over the millennia, become more skeptical about human institutions and/or inventions, even when they are supposed to be in place to help us. Cases in point: Political Systems, Legal Systems, Law Enforcement, etc. We are rightly skeptical because as imperfect beings, we seem to always have a built-in bias, or some form of inefficiency waiting to creep into anything we are building.

Now supposed, an invention like the World Wide Web, which to a certain degree, is more independent and efficient than our traditional human institutions, is threatened in one way or another, we are always easily up in arms. Case in point, the current debate on net neutrality, something one will traditionally expect only Techies to be up in arms about, but that is not the case. The outcries some of us have noticed seem to cut across various professional and educational classes. One can’t help but as, what gives? The answer is simple: People are tired of big businesses deciding what they, as consumers, should be spoon fed. The unparalleled explosion of social networking, video and picture sharing sites is a very good example of how consumers want to set the agenda for their web experience and uses.

What does any of this have to do with Google having the right mix to dominate the web? It turns out to be a lot. Before Google’s stocks hovered above $150 (what seems centuries ago today), I use to read articles in the press that were reminisce of the early days in the mid 1990s when Microsoft and its then fledgling Internet Explorer browser and MSN.com first appeared on the scene. Most of the articles were always how Microsoft didn’t have a clue about the web, because they depend too much on their technology, their PhD people, you have to be a genius to work for them, and how these companies have no human touch to their web offerings. Well, MSN.com started having the famous human touch, and as it grew worldwide, some of its patrons started dropping off – some of us cut down on patronizing the portal for a while there because it became too human, but with very little improvement in content quality. Internet Explorer went on to win the browser wars, and held on to its dominance even through wikia business and web design anti-trust trials.

Well, how about Google? Google’s hiring practices, its dependency on statistical data, etc. have all met with ridicule in the press. Consumers however, like using Google because its most important asset, the search technology, has no human factors to worry about. Secondly, Google allows its users to keep scores themselves too through the PageRank system. Granted, some people have misgivings about how the PageRank system handles some sites. Nevertheless, consumers tend not to be too concerned, so far as the human factor doesn’t become the dominant way PageRanks and Google searches are conducted. How many people out there even know that Google has a Directory, courtesy of the Open Directory Project? very few. I don’t think a majority of Google users care that much for it, since it has the human factor, which tends to favor inefficiency, knowingly or not. Don’t get me wrong. Directories and Portals are important on the web, and will continue to be for a very long time. However, Google didn’t make its name as a directory.

However, a site that started out as a directory on the web, and then tries to get into the pure search game, don’t expect web users to judge its new foray on the same fair standard as say Google. It doesn’t matter whether you can prove to have a better search technology or not. The biased judgment thing is just part of being human, and we all do it. Recently, I visited a major directory/portal that seem to have a quite good search technology. Nevertheless, I have always felt eerie in using the directory/portal site’s search technology as much as I use Google’s. My leery feelings about this directory/portal turned search powerhouse took a realistic turn recently. One of my sites that had a top position on this directory/portal, was recently demoted to a secondary position. The reason for the demotion seemed innocent enough – the other sites that were listed higher than mine, were supposed up there due to “site listings by popularity”. I recently visited the directory to see what those popular sites have that mine didn’t have, so as to try and improve on my site. Well, I started noticing that some of these sites not only had lower PageRanks than mine, and the sites’ content wasn’t worthy of their positions on the directory/portal. Let me state this before I go any further: why did I use Google’s PageRank to make my judgment? Because Google’s monthly searches represent at least 51% of all online searches, and its nearest second is only about half that in search traffic. That means, Google will generally give a better estimation of a site’s popularity on the web than any of its rivals. Now, back to our story. I started thinking about the implications of what I just discovered. Namely, how many consumers out there might have abandoned using the Directory/Portal turned search giant because of their suspicions that the human factor, normally induced by financial reasons, might even be in their so-called search Technology?

Web consumers are a very demanding and fickle bunch, and anyone whose site might have been off a couple of days (like mine), will tell how hard it is to get lost customers back. Web consumers are like this for very good reasons – they call the shots and they know it too! They expect good content, and unbiased choices from the websites they visit. One cannot over emphasis the damage one can do to their site(s) if they don’t play by these rules. Remember the 1990s when some folks designed their site(s) in a way that trapped visitors, or ISPs that supposedly shielded their clients from the dangers of the web, by giving them only One out of every Thousand choices for web searches? Where are these companies now? Most imploded on themselves, or if they hung on to survive the Dot Com meltdown, major changes had to be made.

For now, some of us expect Google’s dominance on the web to last for a while, because they don’t seem to be making the same mistakes. When it comes to betting on the so-called human touch-intensive websites and Technology-Intensive websites, my bet is always on the Technology nerds.

World Markets Plunge -- Martin Luther King Holiday May Have Saved Markets

Well after seeing the news on the world markets I am very very glad that I am 90% cash right now. Even though I took a hit last week, I think there's going to be a bigger hit tomorrow.

Market Down - Getting Burned Defined

I am big fans of the website www.motleyfools.com and their investment geniuses. My friend told me recently about their recent admissions of loosing tons in this recent market sell off. ( Down 2000 points in a couple of months) I have to admit my mistakes also.

I lost big folks! I lost 50% of one of my portfolios value in a horrible series of panic moves.

1) I identified the stock that was doing the best in my portfolio
2) Sold all the stocks that had less than impressive gains
3) Put all of that money into this stunner penny stock
4) The next day the stock tanked
5) I hopped for a recovery the next day and it fell even further

Mostly everything waslost in the two day drop and recovery of Biosolar. I panicked and sold at its lowest point. As like magic, it started to rise started after I stopped looking.

Heres what my portfolio looked like before the crash. It will never ever look like this again. This is the eggs in one basket mistake!

Taking Lumps and Liking It

Its hard to take serious losses like what we have all seen over the last few days. Its effected my porofolio's. I have liqudated on of my portfolio's completely. I am still holding positions in BioSolar but it feels more like a roulette table at this point. The stock has tanked 50% in two days. The CEO is quite. His PR team is asleep.

Well I have the window open. Hopefully the market will pick back up before the ground starts looking like a good option (just kidding folks).

Salesfore.com (CRM) vs Netsuite.com (N)

This is a battle in the on demand software sector that is going to get bloody. CRM is Salesforce.com and an industry standard among Customer Relation Management software.

Netsuite sweetens the offering by tying ecomerce and some other bells and whistles.

They have been getting bashed since their IPO. My prediction is that Netsuite is going to offer some sweet deal to customer's of Salesforce.com to get them to switch.

This is going to affect both stock prices. Netsuite might receive a short term gain but this stock is not worth playing with.

The goldmine is shorting CRM. This stock will be affected and might fall to $25 a share.

If this scenerio does not play out then the FreeCRMs are coming (i.e. SugarCRM an ipo later this year).

With the economy doing bad and in a recession and the field getting more crowded for CRM , I would say short this puppy now.

If you don't believe me check out SugarCRM.com's website. And look at the cost comparison between SugarCRM and Salesforce.com

Jumping Into Apple before keynote @ $177 / Will jump out around $200

Just a quick note that I jumped in Apple around $177. After the keynote and Intel report I think this stock will be close to $200. I will jump out after that. If volume slows down around $190 I many exit at that point.

Press Release For BioSolar

New Research Update on BioSolar Inc. Issued by Beacon Equity Research
Wednesday January 9, 7:00 am ET

DALLAS--(BUSINESS WIRE)--New research update has been issued on BioSolar Inc. (OTCBB: BSRC - News) with a revised price target of $1.37 by Beacon Equity Research Analyst, Victor Sula, PhD.
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The full report is available at http://www.BeaconEquityResearch.com

Anyone interested in receiving alerts regarding BioSolar Inc. research should email members@beaconequityresearch.com with “BSRC” in the subject line.

In the report, the analyst writes, “Since our initial report, BSRC’s share price has surpassed our price target and now rests above $1.00. In addition the Company has increased its visibility within the investment community and improved trading volume and liquidity. The latest industry trends and Company developments discussed in the report are reasons we are raising our price target for BioSolar, Inc. to $1.37 and reiterating our Speculative Buy rating. BSRC’s stellar growth in recent months reflects the Company’s rapid progress towards commercializing its products and technology and industry trends that favor solar energy deployment.”

Other companies in the solar development market include Suntech Power Holdings (NYSE: STP - News), First Solar Inc. (NASD: FSLR - News), Trina Solar (NYSE: TSL - News), and Evergreen Solar (NASD: ESLR - News).

Top Pick - BioSolar

I am reiterating how much I love this stock. I have purchased it 5 times at various price points .88 - 1.25. Once the media catchs wind of this stock and what they do (make solar technology truely green) the green will flow.

Do yourself a favor and check this company out www.biosolar.com

My Strategy The Overview - The Three C's

I think its high time to divulge some of my stagey to my readers. I have summed it up into 3 simple components.

A) Core Industry - Stick To What You Know (i.e. technology, medicine, health care, etc.)
B) Core Companies - Watch A Group Of Stocks And Study How & Why They Fluctuate
C) Competition - Learn About New Companies To Invest In From Articles About Your Core Companies

If you know music then your Core Industry would be the music industry (i.e. Apple, Sony, Universal, etc.). If your an elderly person then your core industry may be health care, who knows about medicine and health care companies than you do? If you work on cars then your Core Industry would be the automotive industry (Ford, Toyota, Autozone, Shell, Gas Companies, etc).

Find some companies and watch them over a period of time. 6 months to 1 year is a good bit of time. I think its essential to study how the news and bumps in the market affect the stock. This allows you to invest around a core price. If you see the stock is down because of bad news and should be trading 40% higher you have an opportunity to make 40% in the short term. If you know that some bad news is going to affect the price of the stock because it has in the past, you can short the stock and make money as it goes down.

I always seem to learn about new companies by researching my Core companies. I highly recommend the strategy. It has allowed me to beat the analyst to the punch.

If your still in Intel get out now.

I have been out of Intel for a while. Sorry for the late notice. It wasn't making that 20% gain I like to see in stocks. With the news I just read about this anti trust lawsuit thats creeping up I have to say exit now!

Sell CRM - Short Now @ 55.30

"SugarCRM. Yet another open-source company, it offers, as its name suggests, software for customer relationship management, things like sales force automation and customer support. It is also on-demand. Think of it as an open-source version of SalesForce.com (CRM). The word is that it is cash flow positive."

Quote from: http://money.cnn.com/2008/01/10/markets/ipo/copeland_ipowatch.fortune/index.htm?source=yahoo_quote

RATED STRONG SELL

This spells bad news for CRM. They have increasing competitors like Netsuite and now SugarCRM. Its time to sell. I am selling short @ 55.30

Now Is A Good Time To Invest In Apple

Apple is going to be releasing some serious information at January 15th. This could include a tablet pc like the iphone, a blue ray HD DVD super drive, or some more advancements to the iPhone.

The stock has been beaten up and is around 185. It should pop to $200 on or around the 15th.

Shorting Netsuite on a down day @ 31.90

This is what you call a bad day in the stock market. I haven't seen my stock watch list look this down in a long time. I have shorted Netsutie again, sorry couldn't resist. I got in at an uncomfortable position but there were not a lot of shares to short. I am betting it's going to go lower than 31.90. I don't have a lot invested in it , like before but before I made $1000 in three days.

New Rule

Once I have had fun with a stock, I can't re-enter it until the next day.

Just had to share. I wanted to so badly short Netsuite again. I think I have made enough selling it short at 39.20 and buying it to cover at 35.59. Hey that was better than a 10% gain in a couple of days..

Okay back to work

Get Into Bio Solar Now

Just can't sit here and keep this one to myself BioSolor is a gem in the rough. Check out the company website or the stock. Get it now at 1.03

Out of Netsuite at $35.59

Thought I would let you all know. May watch it tomorrow and short it again if it keeps falling. Hefty profit for three days.

Hope You Shorted Netsuite @ 39.20

Wow look at this chart. I shorted this and it seems to not have stopped falling. Good guess.

Portfolio's Successfully Recession Proofed

The stock market fell 200 points yesterday but both portfolio's were up one 2% the other 10%. These stock are on the left hand side of this blog. Check them out. Lots of oil and technology. Shorting Netsuite a company that competes against Salesforce.com because its up 200% since its initial public offering with no clients (12,000) - basically its up on emotional buying. This puppy dropped 6% yesterday. Lets hope it goes back down to $24 - its original valuation. I will be watching it very closely.

Shorting Netsuite @ 39.20

Holding shorting! Well I have found a very over inflated stock that may fall to the high teens in a week or two. Its called Netsuite. Ticker symbol is (N).