Welcome to my blog. A lot has changed since I started this thing. I'm now trading live after about a year of paper trading and studying. Originally I had planned on starting part time and slowly growing my account but life has a funny way of changing your plans. I found myself at a crossroads of sorts and quickly realized that I was being given a once in a lifetime opportunity to pursue my goals. I took the leap and I'm not looking back. Follow me here and see the triumphs and the losses.

Updated (08-10-16)

I tend to look for momentum trades that I can hold for anywhere from a few hours to a few days. I usually take positions of $5k to $10k in size to allow larger gains on smaller percentages (it's easier to hit a 1% to 5% gain vs a 10% to 20%+ gainer) and I like to use a trailing stop.

This blog is a way for me to log my progress and to aid me in learning, I hope that you find it useful. Financial freedom isn't given, it is earned. So plant the seeds of education and grow your pennies!

Monday, April 18, 2016

(HTMM) Vid 2 Overview

My title for video 2 in Tim Sykes' "How To Make Millions" DVD would have to be "Learning to Taste the Ingredients" because it was chalk full of information that ranged from the basics of stock trading to how Tim finds his plays.

Tim's pretty good at giving analogies to explain penny stocks and trading so I thought of one too. Trading penny stocks can be a lot like eating at a restaurant, your dish may be a winner and taste great, or a loser and it will leave a bad taste in your mouth. So if you can learn how to taste the ingredients of each type of trade you'll be better prepared to only eat fine dining.

As with video 1 I'd like to share some of my footnotes but you are going to get more than a tasty sample... You need to feed yourself and order a plate to eat the full meal.

Right off the bat Tim explains that he's looking for volatility because you're looking to take advantage of the movement. Tim's sweet spot in volume is between 200k and 2m traded per-day. He explained that anything lower could cause issues with the movement of the stock as well as complications with getting out of a position when needed. Also, having too much volume could mean too much competition.

An explanation of the basic terms and types of trades was given as well as a nice explanation to level one and level two, as well as how they can be useful. 

Again, CUTTING LOSES QUICKLY was expressed during the video. 

Tim is a firm believer in using the charts when planning a trade and looking for breakouts and breakdowns, and several examples of chart patterns were shown.

One of the helpful tips he shared was looking for breakouts that take place after a stock has had an uptrend.

Some of the vehicles that Tim does NOT like to trade are:
  • OJ, Wheat, Soy
  • Minerals (Gold, Silver, etc)
  • Oil
  • Forex
  • Options
  • Foreign Markets
  • REITS, Warrants
  • IPO's
  • Rarely trades Biotech or Financial stocks
Tim has a very focused (sniper-like) approach to trading...
  1. Looks for Daily Top Gainers
  2. Checks for a Catalyst (Earnings, Contacts, Big News)
  3. Focuses on $5 to $10 per share
  4. 20% to 100% gainers
  5. Volume of 200k to 2mil
  6. Looks for a history of being a runner
  7. Looks at the charts and technical, breakouts/breakdowns
But as Tim quotes, "It's more of a guideline really" (said in a horrible pirate accent) He does go for targets of opportunity when the odds are right, such as a trade on $CUBA is shares.

In conclusion video 2 was a lot to digest, I actually listened to it and took notes multiple times over a few days... but the info is worth the work.

Update on swing trades:

$AVP -32.36%, short with a target of $3 to $3.50. 
$RJET -9.02%, long, looking to exit as soon as ticker is traded again.
$SDRL +3.88%, short goal of 10-20%.
$TRIL +11.58%, Long goal of 10-20%
$TWTR -0.80%, Long goal of 10-20% 

Overall total on investment: -4.70% 


No comments:

Post a Comment