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?
