Ross Cameron Day Trade Warrior Review

Ross Cameron Day Trade Warrior Review

“Let thy step be slow and steady, that thou stumble not.” – Tokugawa Ieyasu -

I wish I could say that there is a magic formula that could guarantee profits in the stock market. What I can guarantee is that there are none. In fact 90% of day traders lose money which means you better have a great strategy if you want to survive day trading in the stock market. Let me be more specific. You need a great strategy that has been proven and refined over time to show consistent profits in all types of markets. In addition you need the right tools with a specific plan to get in and out of the stocks you are trading. Is that possible? Yes with Ross Cameron and his Day Trade Warrior team.

Several months ago an online day trading friend of mine (Gary) emailed me and introduced me to a fast growing day trading professional/teacher named Ross Cameron. He sent several videos via his Youtube channel and blog posts from his website. In his email Gary explained that he could give me 5 reasons why I would benefit from Ross Cameron’s day trading knowledge. So, I watched every single video, read several posts and Googled the name Ross Cameron until I was satisfied he wasn’t another FURU (Fake Guru) trying to make a fast buck on subscribers. After several months of free chat Monday’s and his 2 week free holiday trial in December 2014 I joined his chat room. I am not going to lie Gary was wrong. There aren’t 5 reasons someone would benefit from Ross Cameron and his Day Trade Warrior team… there are 10.

Ross Has 3 Simple Strategies

They say 3 is the magic number so it’s very befitting that Ross has 3 simple strategies. He has the gap and go, momentum and reversal strategies. Each one of them has their own set up and they are very simple to learn. The beauty of these 3 strategies is that they are easy to spot and happen every single day in the stock market.

Tip – Don’t confuse simple to learn with easy to make money. Making money is dependent on many factors.

The Master Class Is Thorough

Risk management, stock selection, charting, level 2 and options trading are some of the goodies that Ross spends a great amount of time on in his master class. Luckily his classes are given right after the market close so you can ask questions during his sessions. He will even go over your trades that you made throughout the day if you ask. Don’t worry though if you can’t make it to his class everyday. All of his classes are recorded and posted to his site so you can study and refer back to them at your leisure.

Tip – You can learn so much from Ross for free before paying for a deeper more informative education. Check out his website and Youtube channel.

Awesome Jeff

Jeff is mainly a swing trader as well as a moderator in the room who helps out greatly throughout the day. But why is Jeff awesome? Let me tell you. I am a Mac user and when I found out that I needed to install Windows via Bootcamp because the DAS platform (excellent platform for day trading using hot keys) isn’t supported by Mac I felt lost. I had no clue what to do so I asked Jeff because I heard he too was a Mac user. He told me exactly what to do and then said if I had any trouble whatsoever he would do a one on one Skype session with me (free) to make sure we got it working correctly. Stupid me decided to do it myself because I like to learn and be independent. It took me 2 weeks to figure it out because my blonde hair is my handicap but, it was nice to know I had awesome Jeff to fall back on.

Tip – Ask Jeff and don’t be blonde like me.

There Are 2 New Moderators Adding Great Ideas

Mike and Corey are newly added moderators to the Day Trade Warrior team. I have watched both of these guys call out pretty awesome calls in the short time they have been moderating. Mike focuses on breaking news plays and Corey focuses on reversals. Not every call works out to be a profit but when they are wrong they respect their stops and move on. I am looking forward to learning more from these guys in the future.

Tip – Watch these 2 closely as they are becoming powerhouses of the room.

Try Swing Trading  

Day trading can be tough. Your emotions go through a lot especially from 9:30 to 10am when the market is most volatile. However, you might find the emotion is too much for you and would like to try a slower pace of trading stocks. If that is the case then you can expect to get a daily watch list from Awesome Jeff outlining his swing ideas. On his watch list he gives a commentary on the stocks he is watching along with points of interest to enter, double up, profit take and stop out.

Tip – Try swing trading first as you learn to day trade.

You Will Never Feel Dumb

Carl Sagan said, “There are naive questions, tedious questions, ill-phrased questions, questions put after inadequate self-criticism. But every question is a cry to understand the world. There is no such thing as a dumb question”. I think Ross believes Carl was right because he answers every question without a hint of annoyance… even the dumb ones. Listen if you have never joined a day trading chat room you will not understand my point. Most top traders aren’t always nice and they let you know when you are asking “dumb” questions, posting “dumb” comments or clogging up the chat with noise. Your words might not be dumb to you but other chat rooms will let you know when they are dumb to them. I can honestly say that from what I can tell Ross has never made a person feel dumb for asking or commenting.

Tip – Before asking a ton of question see what you can learn for yourself first. Google has a lot of information too.

The Cost Of His Chat Room Is Great

You get Ross verbally trading real time, Trade Ideas stock scanner on screen, Benzinga giving news alerts and 4 moderators helping throughout the day all for under a cup of NYC coffee a day ($1.65 daily). I mean if that isn’t great I don’t know what is. It also has a perfect rating at Investimonials which says a lot in my opinion. But don’t take my word for it… Check out free chat Mondays or take advantage of his 7 day free trial then make a decision to see if DTW is a fit for you.

Tip – Cut back on 1 thing you waste money on and I am positive you can justify the cost and possibly save too.

Trade Ideas

Trade Ideas is a powerful real time stock scanner that has a monthly fee if you aren’t trading in Ross’ chat room. However, Ross has his Trade Ideas stock scanner up on his screen from 9am until the market close every single day. In addition Ross and Jeff have built amazing custom filters that fit their strategies so you can see the stocks on screen that might be of interest to them. That means you can use that information to trade independently if something piques your interest and Ross is away from his mic.

Tip – Find the strategy that works best for you and focus your attention on that particular scanner throughout the day.

Benzinga

Benzinga is a real time stock news feed with actionable trade ideas and financial insight. Throughout the day you can hear a gentlemen giving real time stock news as it happens along with it’s stock symbol and current price. He also let’s you know if there is a stock that has been halted and why and when it will be reopened again for trading. Benzinga has a monthly fee but being in Ross’ room you don’t have to pay for real time news. It might not seem like a big deal but you never know when breaking news is going to hit which might help guide and expand on your trading ideas.

Tip – Find out which events move stocks before trading from real time news.

Ross’ Voice

Can you imagine Al Sharpton calling out real time trade alerts? Or could you stand to listen to Sly Stone on a daily basis? If you think that is bad what about Rosie Perez? On the contrary Ross has a very calm and controlled voice. This might not sound like a big deal but I would go crazy listening to a voice that sounded rushed, depressed, fake, nasal or heavily accented a la Brooklyn style.

Tip – I used to work as a commentator for ESPN so trust me Ross’ voice is a gift to the ears.

Final Thought

There are plenty of chat rooms you can spend your money on. Some of them are good, some of the are so so and some of them are horrible. My suggestion to you is to do your homework, ask around and find out what works best for you. There is nothing wrong with taking your time and seeing what fits your trading personality. However, don’t be fooled. You might see day traders on TV, magazines or Twitter living the “American Dream” but remember one man’s “American Dream” can be another man’s American Nightmare if you aren’t dreaming in your own bed. Do yourself a favor and don’t waste your time, money or education on chasing people who promise the un-promise-a-bull. Check out Ross Cameron and his Day Trade Warrior team first and see what you think. You will thank me that you did.

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My New Top Stock Research Tool

My New Top Stock Research ToolI’m so fast that last night I turned off the light switch in my hotel room and was in bed before the room was dark. – Muhammad Ali -

If you are a day trader trading momentum stocks you have to make quick decisions if you want to buy or sell a stock on the move. I like to check several sites to gather important information which helps me make a sound decision before entering a trade. However, it used to take too long to go through the various sites that were bookmarked on my homepage. So, I decided to have someone design a stock research tool that allows me to research all my favorite stock sites just by typing in a specific stock symbol.

For example let’s say you wanted to look at one of the biggest momentum stocks happening in the stock market today. GENE – Genetic Technologies Limited has gone up from $1 to $11 in less than a month and being that it is in the spot light all day traders have been playing the long and short side of this money making gem.

Click the photo below to take a good look at the run GENE has had recently.

GENE

GENE has had an amazing run right? Well let’s say you wanted to find out more about GENE but didn’t want to spend unnecessary time going to various websites sifting through links to get the information you need. No problem my new top stock research tool will look up any stock symbol in 3 simple steps.

Here is how the stock research tool works.

  •  Click here to open the stock research tool
  • Type in a ticker symbol in the search bar
  • Click search

You will find 10 sites that are linked to that specific stock symbol you are researching.

  • Yahoo Press Releases
  • Yahoo Headlines
  • Benzinga Analyst Ratings
  • Finviz
  • Short Interest
  • SEC Filings
  • OTC Markets
  • Seeking Alpha
  • Twitter
  • Insider Trading

Short Interest volume is the 11th and only link on the stock research tool that you need to manually add the ticker symbol again. I kept it on for convenience and because it’s a great site to see what the daily short interest volume of a stock is which is different than the stock interest found on shortsqueeze.com.

The stock research tool is free to use. Feel free to link it to your personal website or share it with others.

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Want To Get Rick Quick Day Trading: You Are An Idiot

ConfusedNeutrino
If you’re playing a poker game and you look around the table and you can’t tell who the sucker is, it’s you.
– Paul Newman –

If you think you are going to get rich quick day trading stocks You are an idiot. Yes I said it. You are a complete 100% idiot and You need to slap yourself. Let me be specific. Take your right hand and make a fist. Then extend your thumb as if you were hitchhiking. Next put your thumb in your mouth and blow several times real hard until your hand expands like the hamburger helper hand seen here. Now slap yourself 5 times. Don’t worry I will wait. Are you done? Good.

Where is all this sprightliness coming from you ask? Let me explain. I got an email the other day asking about the worth of the Tim Sykes’ millionaire challenge. A guy who read some posts on my blog decided to pick my brain about my thoughts on joining the challenge because I joined last year. He expressed to me that he thought the price was too high and wanted to see what my thoughts were on it. In essences I told him that it was worth it for me but I needed to know more about his situation and what his specific goals were.

Then he wrote…

Goal is the same… get rich quick :D… I don’t quite understand how you could not make real profit following his tips and hints… Let’s say I pick same stocks as Tim and I shorted them at same time or even later…. How come you are not been able to make money?

Then I wrote…

There is no such thing as get rich quick in my opinion but if that is your goal and you feel confident that you can take Tim’s “tips and hints” to make money then the money is a drop in the bucket. Good luck.

Honestly I cut the conversation short as I don’t want to speak with anyone who thinks this is a get rich quick scheme. He persisted to get more information and we went back and forth some more. It seemed like he wanted me to give him a magic answer to solve his personal dilemma because the money was a huge issue for him. I explained that the get rich quick statement was a red flag for me and I was ending the conversation but I wished him luck on his journey.

He then wrote…

Let’s be honest here everybody wants to sit in beach with drink and relax… dont you want a million dollars on your account ? of course you want …This  guy Tim says that in 3 yeras of trading  you can be a millionaire… he believes in this… you don’t… so don’t blame me for this thx for help anyway.

Our conversation pretty much ended there but I think it’s important to discuss some of the themes that are present in the above conversation. We have the get rich quick theme, we have the follow Tim’s stocks theme and we have everyone wants a million dollars to sit on a beach while drinking peacefully under the sun theme. I will address the get rich quick theme last as I think that has more importance and needs addressing.

Everyone Wants a Million Dollars to Sit on a Beach Drinking Theme

First, I don’t drink alcohol at all and I barely even drink juice, soda or water. Sorry to punch holes in your theme but as I get older I find my bladder isn’t as strong as it used to be so no drinking for me thanks.

Second, take a look at my photo in the about section. Does it look like I like the beach? I am so pale I can make the Pillsbury Doughboy look African! Even when I go to the beach I am constantly lathering myself up with sunscreen so I don’t get skin cancer. Sorry but no beach for me thanks.

Third, yes I can’t deny that I think pretty much everyone wants to be a millionaire but I live in NYC. A million dollars in NYC standards is not an accomplishment by any stretch. In fact, we are so conservative with our money my wife and I ask our kids to eat cereal with a fork to save milk. :).

Just Follow Tim Sykes’ Stock Picks Theme

If you think all you need to do is buy a subscription to Tim Sykes’ alerts or anyone for that fact and follow their picks in order to get rich quick please take your right hand and make a fist. Then extend your thumb as if you were hitchhiking. Next put your thumb in your mouth and blow several times real hard until your hand expands like the hamburger helper hand seen here. Now slap yourself 5 times.

Are you for real? Let’s break down a best case hypothetical scenario.

Let’s say you join a chat room called Stocks Are Us (SAU) and the main moderator buys a stock at $5.00 and alerts their subscribers. If you are extremely lucky you are sitting patiently wide awake waiting for their buy alert. Your fingers are ready to push the buy button once you know which symbol to add to your trading platform. You then rush and type the ticker and buy the same stock at $5.12 or 12 cents more than the main moderator at SAU paid. Then it goes up as you hoped it would and as your trading account inches closer to the million dollar mark you get an alert from SAU stating they sold the stock at $5.50. You rush to sell because you were still sitting patiently and luckily you get filled at $5.37. You just made a .25 cent profit or better said you made 5% on your get rich quick trade. SAU made .50 cents or a 10% profit but who cares. You are getting rich quickly and that is all that matters.

However, what if you aren’t sitting at your computer waiting patiently for stock alerts? What if you are using the bathroom, eating lunch or picking your nose? Wait what if the stock goes the wrong way? I mean let’s be real even Tim Sykes loses approximately 25% of the time which is better than most. That means, assuming SAU has the same track record as Tim, there is a 1 in 4 chance you will lose (more) money if you blindly follow ANYONE’S trades.

Let’s take it a step further. Even though the SAU stock alert is “real time” you have to allow for lag time between alerting and receiving messages through the magic of the Internet. Then once you get the alert, assuming you act fast without reading what is written, you still need to see what the stock symbol is and if it’s a buy or a short alert. That all takes time. A lot of valuable time.

Listen if you don’t believe me then click here and read the best guest post ever from a trader who makes a million dollars a year posted directly on Tim Sykes’ website. Gregg (LX21) will explain it a lot better than I can.

Get Rich Quick Theme

There are several ways to get rich quick. Here are some great examples if getting rich quickly is your thing.

  • Inherit a fortune
  • Bet on a horse with high odds
  • Marry rich
  • Have rich parents
  • Sue someone with a lot of money
  • Catch a record breaking home run ball then sell it
  • Dig for oil or gold

Actually digging for oil or gold might not make you rich in 2015. Ixnay on the last one. Anyway, the above are all great ways that I can think of off the top of my head that will help you get rich quickly. However, day trading is not one of them. In fact, 90% of day traders lose money.

Let me say that again.

90% OF DAY TRADERS LOSE MONEY!

No! Let me say that even louder.

90% OF DAY TRADERS LOSE MONEY!

Don’t get me wrong… You can make really good money day trading stocks but, aside from dumb luck, making money in the stock market comes after solid education. Why? Because you need to know how to read a chart, understand level 2, recognize a good catalyst, read an SEC filing, scan for the right stocks to trade, find a good broker, abide by the rules, learn to manage risk and not be afraid to be wrong so you can cut your losses quickly.

Now let me scream.

90% OF DAY TRADERS LOSE MONEY!

Final Thought

Listen I am not trying to discourage anyone from learning about the stock market. I have enjoyed almost every moment of this entire journey. In fact one of the highlights I wrote about here was when Tim Sykes flew me out to day trade with him on his own dime. That was extremely cool but for me it is also cool to help answer people’s questions along the way. I feel like it’s a personal duty of mine to do that with no strings attached.

Helping-HandSo, with that said I promise that I will continue to answer questions anyone has about anything related to this journey. I promise that I will continue to do it honestly and to the best of my ability BUT if you mention to me you would like to get rich quick I am going to tell you to take your right hand and make a fist. Then extend your thumb as if you were hitchhiking. Next put your thumb in your mouth and blow several times real hard until your hand expands like the hamburger helper hand seen in the photo on the left. Now slap yourself 5 times.

 

 

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10 Reasons Stocks Go Down When You Think They Should Go Up

10 Reasons Stocks Go Down When You Think They Should Go Up

“My happiness grows in direct proportion to my acceptance, & in inverse proportion to my expectations.”

- Michael J. Fox -

Unfortunately good news doesn’t guarantee a stock will go up. Likewise, good earnings doesn’t mean you should blindly buy the stock. So what gives? Why do stocks go down when you think they should go up? There are many reasons but as long as you are looking at the right stocks and your risk management skills are fine tuned being wrong doesn’t mean you can’t make money in the stock market.

  • Short Sellers – Short sellers love to short stocks they think are overpriced or doomed to fail. In fact there is a whole community of short biased traders who never go long a stock. If they get their hands on a stock that doesn’t have buying volume your belief in a stock going up will be met with disbelief when it keeps selling off and can’t find a bottom. Don’t chase the stock up. Let the chart tell you the story.  Don’t know what short selling a stock is? Click here.
  • Gap Up No Follow – Everyday there are several stocks that gap up after hours or pre market but when the 9:30am bell rings there is no follow through momentum to take it to the next high of day. If a stock can’t gap up and go up more it’s time to re evaluate the situation before using pray and hope as a strategy.
  • Profit Taking – Don’t forget there are many traders both retail and institutional that are looking to take their profits. Also, don’t forget about those bag holders who bought high before the stock pulled back. If it’s up again those people will be looking to sell to break even or for a small loss.
  • Newsletter – Chat rooms can sometimes have hundreds and sometimes thousands of subscribers. Even if the main moderator tells his or her subscribers not to follow trades people do it anyway. This can cause a spike to the downside with volume and price action which could ultimately cause scared long biased traders to sell. Add in some short sellers and red will be all you see.
  • Chart Pattern – Bear flags, head and shoulders and a descending wedge are a few chart patterns that retail traders understand as bearish signs. If the volume is there and all eyes are on a particular stock the chart pattern might give the red light to go short regardless of how good the fundamentals are.
  • You Misunderstood The News – Good news seems like a great reason to buy a stock. Logically if something is said to be good people want it. However, if a thriving company is in line with estimates and doesn’t beat estimates that might be a sign of bearish news because growth is slowing down. That is why it’s always best to wait for the news to come out and watch the price action before buying your stock of choice.
  • Unexpected News – Recently there was unexpected news that JP Morgan took a 7% stake in Genetic Technologies Limited (GENE). The stock spiked higher after hours as aggressive longs bought the stock and shorts rushed to cover. Then the following morning Benzinga stated that JPMorgan Chase and its affiliates ceased to be substantial holders of GENE (Click here to see the news). Had you not read the new news you would might have gotten crushed as it traded 20% off it’s highs.
  • The Whole Market Is UP – Three quarters of stocks follow the overall market. That means that there is a 75% chance that your stock might go down or sideways the day the overall market is down. In addition if a particular sector is weak and your stock is in that sector you might find you have to sell faster than you planned.
  • Stock Is Over Bought – A stock can only go up so much. If there isn’t a pullback or profit taking along the way good news or earnings can’t save it from a healthy sell off. It doesn’t mean your theory was wrong. It just means your timing was off.
  • Expose – I recently shorted Advaxis, Inc. (ADXS) after it ran up from $3.50 to $13.88 in less than a month. I had been watching it for a week or so and each time I took a stab at the short side it pushed a little higher and I had to cover. They were featured on CNBC and promoted on various online publications. Then the expose came out which had a real negative effect on the stock price regardless of their 15 minutes of fame on tv. In 2 days it saw a 50% pullback. Ouch!

Well there you have it… 10 reasons stocks go down when you think they should go up. So, before you buy a stock because you expect it to go up dig a little deeper, watch price action and always have your hand on the trigger to bail out if your theory isn’t correct. You can always buy it again once the trend changes in your favor.

Check out 10 Reasons Stocks Go Up When You Think They Should Go Down

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Free Stock Market Training Resources

 

Free Stock Market Training Resources

Life is 10% what happens to you and 90% how you react to it.  – Charles R. Swindoll -

Is it worth it to do the Tim Sykes Challenge is the most frequently asked question I get. The truthful answer to that question is I don’t know. It was worth it for me. Heck Tim even flew me out to trade with him on his dime which you can read here. However, the truth of the matter is I don’t know You. So I can’t tell You what value something will have for You if I don’t know how You are going to handle the good the bad and the ugly along the way.

In essence what’s good for me doesn’t necessarily mean it’s good for you.

With that said, if you are truly looking to start trading stocks, either as a day trader or swing trader, you need to educate yourself first. That is why I put together this free stock market training resource list which should help you to learn about the various tools, resources and options that are out there. All of them are free or on a free trial basis and should be used as a way to EDUCATE before making ANY financial decision.

Remember 90% of traders lose money so it’s best to study and learn as much as you can before spending your harder earned money… or worse losing it.

I suggest bookmarking this page and refreshing it frequently as I will be adding relevant content to it as I come across more free stock market training resources.

Important Blog Posts

  • A reality check in becoming a successful day trader by Michael Goode (Click Here)
  • Scientists discover why most traders lose money by Tradeciety (Click Here)
  • 20 lessons from Tim Grittani successful journey by Tim Grittani (Click Here)
  • Tim Grittani’s biggest loss of nearly $300,000 by Tim Grittani (Click Here)
  • The day I lost a SHIT load of money by Peter To (Click Here)
  • Dumb & stubborn trading from a pro by Nate Michaud (Click Here)
  • Relative strength & weakness vs. intraday trading by Michail Shadkin (Click Here) <-MUST READ
  • How to use trade alerts from gurus by Gregg S a.k.a LX21 (Click Here)
  • 3 mistakes to growing your trading risk by Brett Steenbarger, Ph.D. (Click Here)
  • How to overcome large trading losses by Brett Steenbarger, Ph.D. (Click Here)
  • A young man’s wild and educating trading journey by
  • Getting over fear by The Lincoln List (Click Here)
  • Read the Best of Modern Rock’s Free Day Trading Rules (Click Here) <-MUST READ

Important Videos

  • Watch a future trader lose all his money by Unknown (Click Here)
  • Simple risk management explained by day trading a gapper by Ross Cameron (Click Here)
  • Simple risk vs. reward explained by Madaztrader (Click Here)
  • Simple Level 2 with Time & Sales explained by Chris Dunn (Click Here)
  • 3 level 2 examples by Tim Grittani (Click Here, Here & Here)
  • More Level 2 by StockHaven (Click Here)
  • How to find stocks in any market by Ross Cameron (Click Here)
  • Excellent example of a long trade from Tandem Trader by Nate Michaud (Click Here)
  • Gap up parabolic short setup by Nate Michaud (Click Here)
  • How to grow your small account exponentially by Tim Sykes (Click Here)
  • How to find stocks in any market by Ross Cameron (Click Here)
  • Bounce & reversal strategy by Jeff @ Day Trade Warrior (Click Here)
  • To catch a trader (Documentary) by Frontline (Click Here)

Free Trial Chat Room

  • Investors Underground by Nate Michaud (Click Here)
  • Day Trade Warrior by Ross Cameron (Click Here)
  • The Lincoln List by The Lincoln List (Click Here)
  • The Bulls on Wallstreet by Kunal Desai (Click Here)

Free Trial Brokers (Paper Trade)

Free Stock Scanners

Miscellaneous

 

 

 

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10 Reasons Stocks Go Up When You Think They Should Go Down

10 Reasons Stocks Go Up When You Think They Should Go Down

“I’m willing to admit that I may not always be right, but I am never wrong.”
- Samuel Goldwyn -

So there you are sitting at your computer looking for a stock that is over extended because you love short selling garbage companies. Voila! You found one that meets your criteria. You look deep into the fundamentals and they are horrible. You look at the daily chart and it’s up on air. You look on Twitter and everyone and their mother is bashing it. Perfect. In the morning you look to short it on a pop but instead of going down the stock goes up and up and up.

ARGH! How can this be, who the hell is buying this piece of crap and why am I covering for a loss are just a few of the questions that will race through your mind. Yes chances are your theory will be right one day but before you can be correct in your thinking you have to understand that sometimes there are various reasons a stock might go up when you think it should go down.

Don’t know what short selling a stock is? Click here.

  • Short Squeeze – A short squeeze is a quick increase in the stock price that happens when there is less supply and more demand for a particular stock. So, if many traders are short a stock and people cover their position the stock will go up. The more people that do it at once the faster the stock price will go up. If you want to check the short interest of a particular stock before you get short click here.
  • Buy ins – Sometimes a day trader or stock investor is forced to cover their shares of a particular stock because the short seller did not cover (buy) their shares in a timely fashion. Remember in order to short a stock you must borrow the shares with the understanding of giving them at a later date. If you don’t cover your short position and the broker needs those shares you will receive a buy in notice and be forced to cover (buy) at the end of the day. Buy ins can sometimes cause a short squeeze.
  • Cult Followers – When I first got started with day trading the marijuana sector was HOT. After legalizing marijuana in Colorado investors started buying any stock that was tied to smoking. It got so crazy that some young guy started a site called the Wolf of Weed Street (A play on the Wolf of Wall Street). His site became so popular with cult followers of that sector that he had over 20,000 Twitter followers in a month. Cults are powerful and although most, if not all of the marijuana stocks eventually tanked, his followers helped keep that sector afloat longer than expected.
  • Newsletter – Chat rooms can sometimes have hundreds and sometimes thousands of subscribers. Even if the main moderator tells his or her subscribers not to follow trades people do it anyway. This can cause a spike in volume and price action which could ultimately cause scared shorts to cover and aggressive longs to buy pushing you to cover at a higher price.
  • Chart Pattern – Bull flags, ABCD patterns and a cup with a handle are a few chart patterns that retail traders understand as bullish signs. If the volume is there and all eyes are on a particular stock the chart pattern might give the green light to go long regardless of how bad the fundamentals are.
  • You Misunderstood The News – Bad earnings seems like a great reason to short sell a stock. Logically if something is said to be bad people don’t want to buy it. However, if a failing company comes out with better than expected bad earnings that might be a sign to go long the stock for the short term. Bad earnings are bad earnings but better than expected bad earnings comes with a little glimmer of hope for bag holders doubling down and shorts covering due to the unexpected. That is why it’s always best to wait for the news to come out and watch the price action before taking a short position.
  • Unexpected News – There was unexpected news today that stated Carl Ichan took a $1.3 billion stake in Amazon. The stock skyrocketed $12 within minutes. Then, shortly after, news came out that the rumor was false and the stock dropped right back down. Unexpected news or rumors can come out at any minute and if you aren’t prepared you can get crushed.
  • The Whole Market Is Up – Three quarters of stocks follow the overall market. That means that there is a 75% chance that your stock might go up or sideways the day the market is hot. In addition if a particular sector is strong and your stock is in that sector you might find you have to cover that short position faster than you planned.
  • Stock Is Already Beat – I remember one time Cliffs Natural Resources (CLF) had an analyst downgrade with a price target of $5. The stock was sitting at $7. Within a week it was over $10. If you pull up the 2 year chart you will see that CLF was over $70 at one point. A stock can only go down for so long before it either bounces or slowly fades off into bankruptcy.
  • Press Release – Press releases are promotional tools to move a stock price higher. If a well known PR firm gets contracted to pump up a stock you can see a 300% rise in no time at all. Hard mailers, telephone calls, emails and Twitter can be some of the ways PR firms move a stock higher.

Well there you have it… 10 reasons stocks go up when you think they should go down. So, before you go shorting a stock because you expect it to go down dig a little deeper, watch price action and always have your hand on the trigger to bail out if your theory isn’t correct. You can always short again once the trend changes in your favor.

Check out 10 Reasons Stocks Go Down When You Think They Should Go Up

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Tim Sykes Rewards Dedication

Tim Sykes Rewards Dedication (Tim Sykes & Jai Catalano)

Tim Sykes Rewards Dedication

My son was upset I was leaving. My daughter was curious as to where I was going and my wife, even though she is super supportive, was probably feeling a mixture of emotions because she was going to have to parent my 2 young ones alone.

Where am I going? The where isn’t nearly as important as the why but in the words of the late great Notorious B.I.G I’m “Going Back to Cali.”

At this very moment, I am typing this blog post at a cafe waiting for my all expense paid flight to Los Angeles California compliments of the most famous (or infamous depending on how you view him) penny stock short seller and day trading marketing guru: Tim Sykes.

Like I said, the why is much more important than the where but on June 7th of this year I received the email below.

Hey Jai,

I’ve been following your blog and your trades for a while. As you know, I like to reward my most dedicated students. I’d love to have you out in Miami or LA to trade along side me for a day – paid for by me of course! Let me know if your game and I’ll make it happen!

Keep up the good work!

Tim

Wow! I was blown away when I read his email. I even had to read it several times to make sure my contacts were still serving their purpose. Officially I started when I wrote this blog post 10 months ago. And, for the first 2 months I pretty much studied. Then for 2 months I was concentrating on selling 2 homes in 2 different states and don’t forget the summer, which… usually considered a slow period… was… well… slow.

Yes Tim is 100% correct. I am a dedicated student and even though “life got in the way” I was following the market as much as I could every single day. I even blogged about certain experiences such as, shorting my first stock, taking my first loss in the challenge and responding strongly to a hate comment about me getting paid by Tim. With all that being said, I had NO CLUE he knew my level of dedication and more importantly I didn’t know he read Beyond Debt. With his busy schedule how does he even have time to read?

Anyway, the fact is I am already on my way BUT why does he want to fly me out to LA and put me up in the Mondrian hotel to day trade with him for one day? Aside from his email above I really don’t know. However, I plan to find out and document the cool experience from start to finish.

The Flight Going to LA

Flight to LAXLiftoff. LA here I come. Yes, I have traveled to LA dozens of times in my life. LA was a yearly occurrence when I was a dancer and commentator for the World Salsa Championships on ESPN. I bet Tim Sykes can’t say he has a challenge student who is also a professional salsa dancer. In fact here I am 10 years ago dancing in the LA Salsa Congress. What a wonderful life it is if you just open yourself up to the experiences it has to offer. From salsa dancing to day trading. Sounds like a book title in the making. :)

The Hotel

Mondrian PoolAs a dancer, I have stayed in some very nice hotels in my life and nothing beats the 5 star hotel I stayed at in Dubai but the Mondrian in LA is sweet. When I got to the front desk the concierge took my ID and said, “Ah a guest of Tim Sykes”. That’s right Woman! You better recognize is what I was thinking, however, I decided to go with something a bit more business/age appropriate so I said, (insert British accent) “You are most certainly correct my dear. I am a guest of Mister Tim Sykes”. :) Okay fun is over let’s see the room.

Nice Tim. It’s sexy contemporary. Damn. I wish my wife were here. Actually I already have 2 kids. Scratch that thought. I’m good.

Anyway, I am supposed to meet Tim in an hour for some dinner so maybe I will wash up and take a closer look at the party by the pool that I can see out of my window.

Waiting for Tim

Tim wanted to meet for dinner at 6pm so after checking in to the hotel and saying good night to my kids I decided to hit the Skybar and load up on cranberry and seltzer. I don’t drink alcohol but the look of the drink combined with my acting skills seen here usually convinces everyone I am buzzed. I had 3 drinks which made my bladder work overtime until Tim walked in at 6:45pm. Now in case you didn’t know I have danced for some pretty famous people in my life. Tito Puente, Celia Cruz, P Diddy, Jay Z, Derek Jeter and the list goes on… I am not trying to brag… well maybe a little… but, on the inside, I was somewhat feeling like a screaming teenage girl at a One Direction concert. Partly because I was watching screaming teenage girls at a One Direction concert on the Skybar TV and partly because I had NO CLUE why I was in LA getting ready to day trade with Tim Sykes.

Anyway, Tim walked in casual and cool as I thought he would be. We made our introductions as he thanked me for coming and I thanked him for having me.

Dinner with Tim

Tim Sykes is exactly how he is in his webinars. He is energetic, funny, brutally honest, and to the point. I found him easy to connect with because minus the fact that he is an energetic funny man he is a lot like my wife. :) Anyway, after he asked me a bit about myself I said, “I have to ask you something. Why me? Why did you bring me out here? I mean I KNOW I am a dedicated student but you have many dedicated students. Why me?” He said, “that’s just it. I do this from time to time with dedicated students as a way to say thanks. I see you are dedicated by your blog posts and responses to your viewers. I even follow your trades even though you haven’t traded a lot.” :)

I can’t lie. That felt good to hear. It was nice to be surprised and rewarded for efforts I do by being who I am. And, it was an even better feeling that with all the months of studying under my belt I was able to keep up with our trading conversation. I knew past trades, ticker symbols, past price action, current price, support levels, resistance levels, news, terminology and many many more things. You might think this is crazy but a year ago I didn’t even know what shorting a stock was.

So we talked and joked a bit over some shrimp cocktail and sandy oysters. I told him my challenges as a trader. I said I thought I was picking the right stocks but my timing was off. I also said that cutting my losses were not as much of an issue for me. In fact, I have the opposite problem. I don’t let my winning trades win. Tim explained that that wasn’t a bad problem to have as many people can’t cut losses quickly and end up losing everything when the bull market turns bearish. He said, “go in with a thesis, use small size and feel the experience be it win or lose.”

At that moment it clicked and I knew he was spot on. I told him I read an article at the airport that discusses why some kids try harder and some give up. I quoted a line that stuck out to me. “The brain grows most by getting questions wrong, not right.”

You see I try to look at my losses, be it real or paper money as little gifts of education. Yes they are painful gifts that are as painful as a doctor with swollen hands during a prostate exam but they are educational gifts nonetheless.

Tim and I had dinner for a little over and hour and then he said it was time for him to go rest due to the California time difference. Ouch I forgot about that.

Trading at Tim’s House

My body arrived at Tim’s home at 5:50am. He met me at the door and we quietly tip toed to his patio so we wouldn’t wake up his girl Bianca and his dog Miley. It was cold, dark and very early in the morning but the market was getting ready to open. Tim told me what he was watching pre market and I told him what I was keeping my eye on since Friday. We both shared similar short ideas on 2 stocks: AVNR

which I shorted and covered for a loss but was dead on with my thesis. You see timing is everything and I screwed up timing by .05 cents and 3 minutes then it did what I originally thought it would do based off of ind…. Ok ok ok. I am sorry. I’m done ranting. Like I was saying…

& CNET. However, CNET was gapping up nicely and AVNR was choppy, unpredictable and a biotech. So we looked deeper into CNET but Tim said he couldn’t find shares to short. I said if you can’t find shares I can’t find shares. Let’s be real I’m only using IB right now and you have the secret broker.

(It’s not that big a secret).

Then the market opened. CNET squeezed up and up. Tim said he would put a short order in at $2.95 if he had shares. Then it squeezed more and he said he might have added at $3.05 if he could. Secretly, I wasn’t in agreement but that is because I believed there were too many newbies involved getting squeezed out and there was still room to go BUT I didn’t want to tell Tim that so I said “oh ok boss”. And then it squeezed. In fact it went near $4 before it pulled back. Tim said, “thankfully I didn’t have shares to short. I would have lost on that one”.

Then WATT popped up on screen. I know the stock but I don’t have enough back history to make an impulsive decision on WATT. Within minutes Tim discovered that the IPO lock up date was to expire in 2 days, the stock bounced 70% off it’s morning panic low and he saw that there was resistance at $10.75ish. So, Tim shorted 5900 shares at $10.39. It dropped pretty quickly and then up trended a bit. Tim left the patio and I did my own research to see if I thought following him in was worth it. I NEVER follow Tim’s trades unless I have done my own research first and I wasn’t about to start now. However, his thesis was very convincing on further inspection so I put in a sell order at $10.42 as WATT was bouncing a bit. The SSR was on so I had to wait for the stock to uptick to get in as I couldn’t put my offer on the bid. Unfortunately it hit $10.42 but I never got executed and WATT went down and down and down some more.

We kept a close eye on it and he explained his desires to cover at $10.10 which he actually made a video lesson about real time. After listening to him I completely saw his safe exit. Yes we both thought there was more downside in the next day or 2 but why take the overnight risk. So, Tim posted his video and covered.

Then the lull of the day came and so we chatted about stocks, life and ate lunch like 2 pals from back in the day. Tim was a real down to earth guy with a genuine heart. I don’t want to get too misty when I say…

MESSAGE ALERT FROM SECRET BROKER!… which isn’t really a secret …shares for CNET available to short.

Quickly we looked at the chart and Tim and I saw $3.20 which used to be support was now acting as resistance so he shorted at $3.05 for a potential crack and possible panic. Personally I wasn’t quite convinced there was enough reward for the risk but who was I to say to Tim not to short. So, I said “oh ok boss”. He said if he is wrong he will cut losses at $3.25. Well, within minutes it squeezed and like Tim said he got out. Tim then looked at me and said, “when you are wrong you get out.”

For the remainder of the trading day we chatted some more. I met his lovely girlfriend Bianca and his adorable puppy Miley. We shot a testimonial, took a couple of photos and got ready to head back to the airport when the market closed. It wasn’t the most eventful day in the market but it was a wonderful experience watching and hanging out one on one with Tim Sykes.

Uber Ride to the Airport

Tim and I jumped in an Uber taxi and went to the airport. I told him he was a very generous host who truly didn’t need to do all that he did for me. However, it was very much appreciated. He told me moving forward what he thought I needed to concentrate on. “It’s best to only trade the good setups when the opportunity arises and DO NOT over trade”.

Between you and me that is exactly what I have been doing and boy is it helpful. It’s not as much fun but man has my trading started to change. Don’t get me wrong I am not putting up Tim Grittani numbers yet but in case you were wondering I no longer ask for a Starbuck’s tall drip. Nope! I go all out for the caramel macchiato. :)

Anyway, for 45 minutes we traded some various life stories including our great love and fun in NYC. I talked about my family which has inspired me and supported me in my day trading process. Then in a blink of an eye we arrived at LAX airport, said our goodbyes and my day with Tim Sykes was over.

My Thoughts
“The vision that, in cultivating our trading, we develop ourselves in ways that ripple throughout our lives.”
Unnamed caller quoted from Dr. Brett Steenbarger’s book The Daily Trading Couch.

The quote above sums it up best for me. My process has been more than just a profit and loss of money. In fact that has only been a small portion of the bigger picture. It has been a journey that has changed the course of my life. I think differently, I respond differently in certain situations and I even find that I am raising my kids in a whole new light. Sounds corny I know… but it is true.

I didn’t see it when I first began because I too got caught up in Tim’s marketing of making millions trading penny stocks, but over the course of these last few months I have come to realize that this (for me) is a journey of becoming a better man to become a better trader. It’s about research, preparation and studying. It’s about reflection, journaling and practice. And most importantly it’s about overcoming fear, controlling patience and knowing when to fully accept as well as acknowledge being completely wrong.

Up to this point of my life I have had a blast and my experiences have been bigger than I have ever imagined. Meeting Tim has just been added to one of those experience along the way. And during those many years I invested (not trading) in stocks but never really knew why I was investing aside from “it was the thing to do”. Yes I got lucky with some of my stocks from time to time but for 20 years I just put my money where people told me to put it and never questioned the fundamentals or technicals of the company. And I certainly didn’t think about the corruption, lies, deceit and pumping/promoting that most (if not all) stocks do. However, when I decided to question it Tim Sykes was all over the internet with answers. After weeks of research and multiple conversations with my wife it seemed like a no brainer to join the millionaire challenge. You see the way I looked at it I had 2 basic choices. I could keep investing in safe companies and pray that all went well with the hopes of making 10% on my money annually… Do you remember Worldcom, RCA, Paine Weber, EF Hutton, TWA, Bear Sterns, Blockbuster?  Neither do I… or I could invest in my education and blog about my growth as well as failures for the world to see.

Look I could have started my in depth education process about the stock market in various ways but I started with Tim and for that I am very happy and grateful. Maybe that isn’t your path and that is perfectly fine but I am proud to say that each step forward on this trading journey leaves a trail that began with Tim Sykes. Since taking my first steps I have joined Investors Underground Elite and frequent Ross Cameron’s free chat monthly Mondays to build and strengthen my knowledge. With that being said, I believe that this blog and my personal thoughts and experiences along the way are the reasons Tim invited me to trade with him. Point blank it helps his business which he is thankful for.

Honestly, I could care less about what people have to say negatively about Tim. In fact, I could care less what they have to say positively about him as well. This is about my experience and my new chapter in my financial life that proudly starts with Tim Sykes.

So hats off to you Tim for the wonderful experience. I will continue on this journey as well as answer the many weekly emails I receive about you and the Millionaire Challenge. I thank you for your honesty, I thank you for your work and I thank you for being the first real voice who helped me open my eyes to the lies, corruption, deceit, greed, fear and stupidity that I never truly knew was in the stock market before.

Do you remember Enron? Neither do I.

 

 

 

 

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150 Modern Rock (Trading Fish) Day Trading Tweets

150 Modern Rock (Trading Fish) Day Trading TweetsOn average it takes a baby 3 months to hold its head up, 6 months to crawl and 12 months to walk. Running takes even more time. That is why I have no problem being patient in my day trading journey. In fact to further my education I joined Investors Underground Elite recently and blogged about it here. In case you don’t want to read that post, I basically said there were several reasons I joined IUE. One of the many reasons was because I am a HUGE fan of Modern Rock. And if he recommends something I feel compelled to find out more. So I did.

But who is Modern Rock? The short and the long answer is I don’t know. However, for the last few months I have read about his amazing profits, difficult losses, rants as well as jokes which all boil up to his super educational lessons and my favorite 150 Modern Rock (Trading Fish) Day Trading Tweets.

“Give a man a stock tip, and you feed him for a day; show him how to trade, and you feed him for a lifetime.” – Modern_Rock

150 Modern Rock (Trading Fish) Day Trading Tweets:

  1. 1) NEVER ever fight the trend (don’t be a hero) 2) Always cut your losses quickly (you can always rebuy).
  2. Let your winners run BUT always remember to sell on the way up in partials to lock gains which affords you to hold the rest longer!
  3. TradingNaziFish NEVER averages down. Why add more to the misery? BUT he LOVES to average UP, meaning he adds to a WINNING position!
  4. Chart support & resistance are the two MOST IMPORTANT chart indicators u will ever need to know. Anything else just used to impress other fish.
  5. TradingNaziFish is trendy & HATES to buy stocks that are on sale! It’s on sale cheap for a reason! Avoid the clearance bins. Stick to hot plays.
  6. TradingFish bats for singles but in the process will hit doubles triples & even homeruns/grand slams! But it all starts from a single base hit.
  7. Choosing the right stock makes trading so much easier. I never trade stocks that are red on the day unless I’m shorting (never fight trend).
  8. When trading I choose GREEN stocks that have a bullish trending chart. When the stock changes trend or turns red on the day get the eff out!
  9. I’m a small fish in a sea of sharks. So I never fight where the whales want to take the stock. Ride the trend wave and never fight the trend.
  10. It is OKAY to take losses. A small loss or break even is good! Remember, wannabe heroes often die. Never turn a small loss into a huge one!
  11. It’s very hard to make $1k but much easier to make $100. So TradingFish tries to pick trades wisely to gain $100 at a time. Patience is key.
  12. So TradingFish likes to just make many trades for smaller gains (bat for singles) vs trying to swing for fences & most likely striking out.
  13. If TradingFish can gain just $100 per HOUR trading (6 hour trading days) that means he will make $170k a year! $50/hr is $85k/hr! Goldfish!
  14. By holding a core position he won’t miss big moves. By scalping trading around that core he will gain from the smaller movements as well.
  15. TradingFish is agnostic thus he never uses the PRAYING method. Traders who pray must have broken a cardinal rule and so will be punished!
  16. I hated every minute of training, but I said “Don’t quit. Suffer now and live the rest of your life as a champion.”
  17. TradingFish 3 Day Rule: On 3rd straight days of green, stocks tend to drop. To be safe I reduce my position in partials each day beforehand.
  18. So day 1 should be largest position size then I reduce some on day 2 which cushions me to hold rest to day 3. Not all make it to day 3 beware.
  19. By selling partials on way up u will lock in PROFITS which will cushion you in case next day is a down day. When RED for day I sell all out.
  20. It is ALWAYS BETTER to cry about lost potential than actual real money losses. If you’re always crying about lost potential you’re WINNING!
  21. Nothing is worse than when you’re UP in a stock and let that turn into a loser. To avoid that you sell on way up in partials! Money in bank!
  22. Strong stocks tend to get stronger. Weak stocks will get weaker. AVOID clearance bin shopping for stocks. They’re cheap for a reason!
  23. The 3 day rule is what turned TradingFish into a GOLD fish! Study the charts of plays and you will see it. This is my million $ secret shhh.
  24. TradingFish became successful when treating trading like a JOB. With a job you don’t want to work for free. Need to PAY YOURSELF daily!
  25. TradingFish didn’t become a gold fish overnight. He spent years as a guppy building his bankroll. Slow & steady while learning. No shortcuts.
  26. if the trend is bullish and it dips you can buy/add to average UP. This is not fighting the trend. Trade with the overall trend.
  27. PRO TIP: if you buy 10k of a .20 stock and sell it at .21 that makes you $100 off just a $2k position. Do it another time you up a day’s pay.
  28. When scalping Trading Fish likes to buy on the bid and likes to sell on the offer. Patience is key you have many hours to pick that trade.
  29. If you are averaging UP means you are making money. NEVER average down! If stock goes under the price of any adds sell the add!
  30. AVOID trading midday unless you’re more advanced. It’s too risky and volume is bad. Just trade the first hour last hour of the trading day.
  31. A good simple technique is buy STRONG stocks 1/2 hour b4 close then sell 1/2 hour after the open. Stick to green rule & remember 3 day rule.
  32. When it goes red = red on the day. Red on the day is a huge danger sign. U should sell a little bit before it gets there. Once it red = dead.
  33. Green to red (green/red) is a huge trading indicator. When it hits red shorts attack and it WILL spike down hard!
  34. Red to green (red/green) is also a huge indicator as the stock was once weak (red) but now crossed into strong (green) territory.
  35. The Green to Red is much more reliable indicator. It usually tanks HARD once the stock turns red on the day. This is a MAIN signal to watch!
  36. TradingFish used Green2Red indicator when shorting. The great setups are the promos that been going up daily and is on day 3 or more!
  37. There are tons of diff ways to trade to make money you have to try some be it paper trading or real and see for yourself. Keep a log book.
  38. Trading is all about probability. I call pattern recognition. I recognize certain patterns that been profitable and those are ones I trade.
  39. Only way is to keep doing it until it becomes REFLEX. Do it over & over until it becomes habit and instinct. Like an elite sports athlete.
  40. Ok the upcoming tweet is literally the million dollar question : what is the BUY SIGNAL for the 3 day rule. It is break up of trend + volume.
  41. Search for a stock breaking out of a flat or downtrend. There is often a day 0 that insiders accumulate in silence before they break it out.
  42. Volume PRECEDES chart moves. Meaning spot the increase in the volume you will spot the upcoming movement.
  43. How to avoid manipulation by market makers and algos? By trading only plays with high vol. That’s why trading at open and close is best.
  44. when times of famine come, you go back to the BASICS. Take VERY small risks. Just scalp with tight stops to make a living & feed yourself.
  45. Right now i’m literally trying to make $100 scalps. No hubris here , no ego. It’s a job and i’m going to grind today and all days like this.
  46. There’s no secret to making $ trading. You have to work hard and put in your time. It’s all about experience. Whoever says otherwise SCAM!
  47. When the market closes doesn’t mean your learning ends. Pull up charts for the most active stocks and see how it moves through the day.
  48. If you’re nervous don’t worry TradingFISH is also nervous. BUT he relies on pure instinct and STOPS over thinking but just REACTS instead.
  49. That’s where practice comes in. You practice practice practice so when the time comes you can just react, Trading like a reflex!
  50. The BEST gappers are usually weekend gappers. Because the pumpers are out in force over the weekend hyping up the stock!
  51. Once the frenzy slows I can see if it held support for next leg or just a gap and crap which I am ready to just sell all my position.
  52. What locking in profits do is helps u hold the rest a bit longer since u REALIZED some of the gain. So now if the stock goes down u cushioned.
  53. How to handle a big gap up when you’re not in the stock: Scream Daaaang & DO NOTHING! DO NOT CHASE right @ the open.WAIT for stock to settle.
  54. Stock gaps up & I want to buy it I can: 1) wait for it to settle, dip to see where support is or 2) buy a little & get ready to sell QUICK.
  55. I say don’t chase cause many don’t have discipline to SELL QUICK once you’re down. But it’s ok to test waters & nibble to see how stock reacts.
  56. When chasing I actually risk but 1 tick. Cause if I’m not in the money immediately why hold on since I’m stupid to chase in 1st place!
  57. If the position I’m already in runs higher I have luxury of adding Averaging UP since I’m cushioned from a good core avg. BUT Never 4get to Sell!
  58. I hardly open new positions right @ open. Be patient wait 2 see how stock behaves & settles. If u miss a play it’s ok, there will be another!
  59. As much as the FISH likes 2be a gunslinger, his style is very Defensive. He likes 2 attack when odds are in his favor, always sticking to RULES.
  60. He will risk only a portion up to maybe half of the gains. NEVER turn a win into a loss cause of greed and ego. Book that win no matter what!
  61. Why book the gain always? Cause u can always REBUY if u sold too soon! Nothing wrong w / rebuying stronger stocks higher! I do it all the time.
  62. And that is the secret to trading: buying strong stocks on the bullish up trend. Don’t mess with it when trend changes. Study your charts!
  63. Like the FISH said before trading is all about pattern recognition. It’s all probability of something happening based on a specific event.
  64. Basically it’s I saw this chart setup before & last time it did this so I will trade it like this. If wrong cut losses quick. Nothing is 100%.
  65. Avoid the bottom picking game of a slow stock WALK DOWN. These are NOT simple bounce play. It’s very hard Rather wait for confirm of bounce.
  66. Techniques used for trading around a core etc works well during moves UP bullish trend. Walk downs bouncers much harder as bottoms r NOT set.
  67. I am a big short when the time is right. What I don’t do is pretend I do it to help others. I do it for personal GAIN $ & don’t cry to SEC.
  68. The only one who benefits from a super low price penny stock tanking are the market makers who can short and also bounce daytraders like me.
  69. KISS – KeepItSimpleStupid is how I am profitable daily. My BIGGEST losses are always when I think I know better or over think the obvious.
  70. Shorts & sells show up on T&S same exact way. You will never know one from the other nor should you even need to care! Stick to the RULEZ!
  71. Learn to be INVISIBLE and you will make more money. Learn to scale in and out so as not to be flagged by mm’s who WILL front run big orders.
  72. My biggest pet peeve is ignorance stemming from LAZINESS. Before asking a question, you should always try to find the answer yourself FIRST!
  73. I don’t need to be the hero w/the absolute lowest buy or top sell, I am happy lowering my risk by playing only the MEAT (middle) of the move.
  74. I always say “You only need to get rich ONCE”. So i never ever risk 100% on ANYTHING. When investing i always assume 100% loss just in case!
  75. People have diff trading strategies. I stopped being arrogant to think my way is best. Some invest, swing, or scalp. Do what works FOR YOU!
  76. Unfortunately it may take a HUGE loss or 2 or 10 b4 u realize what you’ve been doing is not working out. There’s No perfect system xcept HFT.
  77. U don’t need 2be an “expert” 2be successful at trading. Learn the ruleZ so u don’t have to repeat mistakes of an expert.
  78. 90/90/90 rule: 90% of ALL day traders lose 90% of their money 90% of the time! But u can gain an advantage if u keep discipline.
  79. Problem is during the crash when is the bottom? Many went BROKE guessing bottom. U only need to get rich ONCE So don’t take unnecessary risks.
  80. BUT what I DO KNOW is when to sell: I sell before others do, leaving money on the table. I rather cry about lost potential versus LOST MONEY.
  81. Trading is so simple yet INSANE: if ur making $ keep doing what ur doing. But if ur losing $, doing the same thing over will do what?
  82. It’s MUCH easier to play stocks on the way UP (bullish trend) than to try pick bottom & play bounces. If wrong ur a dead cat b4 bounce comes.
  83. EASIEST way to play a bounce is WAIT for stock to close GREEN on the day. Then you use the 3 day rules to trade out of the confirmed bounce.
  84. When does 3DayRule start? Starts when closing price of a stock flips from red2green or from green2red. So 1st day of red or 1st day of green.
  85. Summer trading is more temperamental in that you have to be QUICKER since volume is much less & not being disciplined gets you beat up!
  86. There’s concept of Day 0 never mentioned before. Day 0 is very special case harder to detect. Day 0 can be bounce day or silent accumulation.
  87. You have to adjust how you trade and be more patient. Summer is like fishing but the lake is full of gators ready to eat you alive if u fall.
  88. This rule supersedes ALL in any situation: ALWAYS CUT LOSSES! DO NOT average down a loser! ALWAYS cut your losses Live to fight another day!
  89. And always remember it is BETTER to MISS a play or to sell EARLY, missing out on potential gains than it is to CHASE and LOSE real money!
  90. Learn resistance & support. Good place to buy are at near support and to sell b4 resistance. If support falls SELL if resistance breaks BUY
  91. SECRET: They say buy low sell high That’s WRONG & BS! Fish says “buy high & sell HIGHER!” Chasing what u think 2b the low is how u get STUCK.
  92. When I started trading I listened to BS trading advice of CNBC. It’s WRONG! DO NOT average down! That’s how u go BROKE! Cut losses instead!
  93. Amazing how successful trading is counter intuitive: we want to buy things on sale which is WRONG for trading. Stocks r on sale for a reason!
  94. Always remember the best part of the trade is the MEAT! Sure we may buy higher & sell b4 the top, BUT we won’t stress & guess. EAT the MEAT!
  95. Remember you can sell in partials and lock in gains in pieces on the way up. And you can always rebuy it. Aka Trading Around A Core.
  96. How to trade pending events? “Buy on rumor, sell on news” is the best way to trade. Buy then sell on the ramp (for anticipated good news).
  97. Holding thru earnings is risky for daytrader (non long term investor) as it’s gambling. Best to wait 4news 2come out & trade the volatility.
  98. Trading is like fishing. Not all catches will be whoopers. You never know what is biting on the other end until you pull up the catch.
  99. Problem many have is NOT FOLDING (cutting losses). Then they hold pray for a 1 outter miracle on the river. Then end up folding at the bottom.
  100. Buy at support, sell at resistance. Best advice you can get is free thanks to @MRockTrades & @mrockrulez.
  101. Many people try to differentiate a “type” of play. They think they’re smarter than others. BS treat them all the same: STICK to the RULEz!
  102. Problem with trying to label a “type” of trade is your mind is already biased and set. What if you’re wrong & most likely you will be wrong!
  103. How many people go broke get hooked and break all rulez cause last play was a huge success. NOTE: That’s how crack drug dealers operate too!
  104. Trading can b super complex IF u allow it 2be. I try to KISS KeepItSimpleStupid. Lock in gains. Control greed & ego 2 major causes of losses.
  105. Greed kills a ton of people cause they get pissed cause stock keeps going after they sell. So on the next play they hold and stock tanks.
  106. Risk management is HUGE aspect of trading. Notice sizes I hold o/n. I’m riding house $$ and NEVER go all in. You only need to get rich once!
  107. Guys, trading is not about being “right”, it’s about making MONEY. I’m wrong on trades all day long but i cut losses QUICK & don’t fight trend.
  108. So many over analyze trades. Learn the KISS Keep It Simple principles at @mrockrulez I use only BASIC charting when I trade & my eyeballs.
  109. Getting comfy with trading does not come overnight. It requires practice and realizing all rules work TOGETHER not just singular by itself.
  110. Trading is all about pattern recognition, being able to recognize instantly the current situation and how to react & trade on it.
  111. Rules of the OTC Fight Club: 1) you don’t invest in OTC 2) you don’t invest in OTC 3) fight is over when investor goes limp and is broke.
  112. $400/day is $100k/year? Be patient and pick a few good trades cause It’s easy to make $100/trade, MUCH harder to make $1k/trade! 
  113. When EVERYONE expects the SAME, singular result on a stock, chances are that stock will do the complete opposite! 
  114. “Give a man a stock tip, and you feed him for a day; show him how to trade, and you feed him for a lifetime.” – Modern_Rock
  115. Money management, discipline, having no ego being able to sell quickly for a loss: keys for LONGEVITY. Slow & steady WINS the race!
  116. So much of trading success comes from confidence/mental strength/discipline. When u doubt & 2nd guess yourself is when u lose.
  117. NEVER EVER SHORT DAY 1 big movers/short squeezes (like $ACHN). Miss it or follow 3 day rule. Day 3 nears start to sniff a short is ok.
  118. The power of the Fish 3 day rule applies to long side as well as shorting. You can trade both sides: long day 1, reduce days 2-3, then short.
  119. I reiterate this 100x it never gets old: avoid swinging for the fence & striking out. Bat for singles & that’ll turn to dbls triples & HRs!
  120. Ive always told people every loss means that you have to MAKE UP that loss before you have a gain! That’s why keep your losses to a MINIMUM!
  121. In trading, a major strikeout can wipe away multiple home runs! Don’t let one strikeout ruin all your hard work! 
  122. I barely traded this summer means I’m not making $$ BUT it also means I’m not losing either! Remember NEVER FORCE trades $0 better than losing
  123. Trading is all about pattern recognition & how to react to it w/high probability of success. So WAIT for your preferred setups! 
  124. Swings are good, but i have Rulez that supersede all: 1) NEVER fight trend 2) cut losses quick 3) always take gains along the way/partials.
  125. Newbies: I cannot stress enuf the importance of charting. It’s more important than L2 when starting out. So LEARN the basics! Google it.
  126. Trying to cherry pick a bottom on Slow walk down weak stocks are how most lose their ass. I trade only parabolic TANKS not SLOW WALK DOWNS.
  127. When trading big boards, have SPY/ DJI / Naz charts up. The bounces are often in unison OTCBB is like the honey badger: doesn’t give a shit.
  128. Intraday i like to scalp channels. find out where the resistance is and support are. and that’s where you buy and sell between.
  129. I cannot stress enuf the importance of TIMING when trading. You may be BROKE by the time your guru calls are correct. Timing is EVERYTHING!
  130. One thing I learned is price action and charts do not lie as much as CEOs or your ego/pride do. 
  131. Are you losing cause: -You chase and buy tops -You hold too long don’t sell -Don’t cut losses? -Buy illiquid stocks? -U avg down & lose.
  132. You need to go back to your trades and analyze the root of why you lose so you can avoid them in the future. And it takes time & experience.
  133. Another good tip is to go back to your WINNING trades and see what made them successful! Then repeat it! Avoid the pitfalls & stick to rulez.
  134. Trading is like a sport & the classroom can only take u so far. You need to practice practice & make it become a natural reflex.
  135. Reason u practice till it becomes a reflex is in battle u don’t have time to think. Trading is about REACTING based on scenarios.
  136. Like poker & chess: the more scenarios/situations u seen in the past, the more likely of success. Key is PATTERN RECOGNITION! 
  137. So when a scenario/chart pattern comes that u don’t recognize, avoid it. Wait for a pattern to develop where u been successful in the past!
  138. How I deal with big losses or a losing streak: We all have losses, even me yes lol. And they come in STREAKS cause it’s MENTAL
  139. It takes one trade at a time, one day at a time. That’s how you become successful in the first place! 
  140. When u can’t hit singles anymore when you did in the past, it means something is wrong w/your mental state. Also strategy changes over time.
  141. In sports, there are sports psychiatrists to help with your mental game. Trading is a huge mental game as well. Don’t trade when angry, etc.
  142. So that’s how I started my strategy of just making smaller obtainable goals and repeating them over and over. $50 profit a trade adds up!!
  143. One often overlooked rule: NEVER turn a PROFIT into a LOSS! How to prevent it: 1. sell some on the way up 2. see first rule.
  144. I’m a scalper, so i like patterns and the pattern i use a lot during the lull are Channel trades, boring trades between resistance & support.
  145. I make money in the morning then trade w/house $$ the rest of the day but always making sure i stop b4 i lose all my hard work $.
  146. Money Management is key to both trading as well as your life finances. It’s not how much you make, but how much you SAVE!
  147. I like to trade the MEAT of a stock move and leave the bones for others. Meat tastes good. Going for tops/bottoms gets u BONED!
  148. Trading Rules are like bones & sometimes will get broken. It’ll definitely hurt, but the bone will get stronger with each break.
  149. Weak stocks that are on sale are on sale for a reason. AVOID trying to chase and cherry pick bottoms else YOU will get spanked!
  150. Trading is all about TIMING! I need to remind myself have PATIENCE & wait for the setup to come to me. DON’T FORCE the setup!

Well there you have it. My favorite 150 tweets from Modern Rock. It’s true some of them seem similar but like a great coach, one needs to hear things again and again and even again for them to stick. I hope you take this opportunity to check out Modern Rock at his Twitter feed. I guarantee you will be amazed and the best part about it is he does this from the kindness of his heart.

Modern Rock’s Twitter page can be found here.

Trading Fish Rulez, Rants and humor page can be found here. *Please start from the very 1st tweet to fully understand his lessons.

 

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I Joined Investors Underground Elite

Investors Underground Elite

I Joined Investors Underground Elite

When I wrote this review on the Nathan Michaud Textbook Trading DVD I clearly stated that I was eventually going to join Investors Underground Elite. Well guess what? Eventually has come. A few days ago I signed up for a full year’s subscription of IUE. I did this for many reasons which I will gladly explain below.

First, a recap of the last 6 months. If you haven’t read this popular post you won’t be familiar with when and why I joined the Tim Sykes Millionaire Challenge. Aside from making a living and the fact that I am busy with 2 kids and 1 wife a lot has happened since the end of January which has kept me more in education mode while watching daily on the sidelines.

So, with that being said, I won’t bore you with how time consuming the kindergarten process was for my son. Nor will I pester you with the workload I had with selling 2 homes in 2 months in 2 different states. I can’t imagine whining about how much effort it takes to sell a website. And there is no way I will even say a word about needing a personalized vacation after vacationing with my entire family. Nope! I refuse to share any of that information with you because for all intents and purposes those all sound like excuses. :)

Let’s be honest! 7 trades using a particular strategy, which can all be viewed here, can’t be considered a financial success no matter how big the win. You see, success for me is more than just my monetary gains. It’s rooted in my education. And we all know that learning something new can be fun yet challenging. But, even though you can’t see those challenges, in case you are judging only by my Profit chart, I am 100% active everyday.

Here is a little taste of what I mean.

  • I watch daily video lessons.
  • I participate in weekly webinars.
  • I have written 16 posts including a response to an accusation “Tim Sykes is a scam“.
  • I do nightly stock scans choosing what stocks to look at the next day.
  • I do nightly charting with support/resistance levels.
  • I read the news on what moved the stocks I scanned.
  • I come up with a plan of how I might trade the next day and follow up with a recap.
  • I paper trade or not depending on the set up.

Yes I was dead against paper trading as you might have read during this point of my day trading journey but, like the volatile stock market, things are always changing. :)

I also redesigned Beyond Debt’s look and feel. Ok how does any of that pertain to why I joined Investors Underground Elite? Patience I am getting there. :)

Yes Tim Sykes, Michael Goode and his team have taught me more in the last 6 months than I have learned in the last 20 years I have dabbled in the markets. Hands down I will continue to learn from them. However, I figure if I plan to do this for the long haul then I want to learn as much as I can about the fundamentals and technicals of the market. In addition, I want to learn more about charting, watch lists and what moves a stock. I also want to learn about other strategies to see what works for me by expanding on my education which leads me to…

Reasons I Joined Investors Underground Elite

Well that pretty much sums up the reasons I decided to join Investors Underground Elite. Now that things have started to settle down for me my goal is to expand on my education while continuing my nightly routine that I might share one day real soon. :)

Oh and just so you know. For all of those who don’t think I am thorough in my research… I read all the not so pretty things about Nate too. I didn’t post them because, in the words of  Clark Gable as Rhett Butler:

Frankly My Dear I Don't Give A Damn

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Nathan Michaud Textbook Trading DVD Review

Nathan Michaud Textbook Trading DVD

Nathan Michaud Textbook Trading DVD Review

Car buyers can find a wealth of information in Kelly’s Blue Book. Home buyers can lean on resources like Zillow but what do day traders have? Who cares! Let me tell you what they should have. If you haven’t read this post on when I joined the Tim Syke’s Millionaire Challenge then you won’t know why my opinion might matter to you. You see I get a lot of comments asking my personal opinion about this journey and now with over 50 subscribers to this blog I feel compelled to share a great resource a (new) day trader must have. That resource is the Textbook Trading DVD by Nathan Michaud.  Let me tell you it is one of the most comprehensive, detailed and well thought out day trading resources you can have to maximize your profits and minimize your errors, losses and dumb mistakes.

It was shortly after I joined the challenge that I found out that the Textbook Trading DVD was out and when I read all the buzz on Twitter, Profit.ly and Investimonials I knew I had to have it. Plus there was a big sale going on which gets me every time. :)

Anyway, I watched the entire DVD from start to finish two times and then re-watched certain segments over and over again to get a better understanding of the material. Let me make this clear, even after I post this review I will continue to refer to the DVD because there is a world of knowledge stored inside that I am sure I missed. So, with that being said I am ready to give my honest review of the good the bad and the ugly of Nathan Michaud’s Textbook Trading DVD.

Textbook Trading DVD The Good

The DVD is broken up into 3 parts. The DVD, Quizzes and the Interviews. The quiz is fun and helps to jog your memory once you have watched the DVD. The interviews are inspiring and leave you wanting more interviews but the jewels are in the DVD.

There are 8 hours composed of 11 chapters in the Textbook Trading DVD and it appears that they were broken up that way to maximize a day trader’s education. Below is a breakdown of each chapter with a little comment about my thoughts.

  • Chapter 1 – Purpose & History

You must watch chapter 1. Nate’s history is so important to understand what gives him the right to sell people his education and knowledge. Plus there is a GREAT story of how he lost a HUGE amount of money trying to save himself from a motorcycle parking ticket and tow.

  • Chapter 2 – Setup and Terminology

There are specific terms that will confuse you if you don’t know what they are. HOD, SSR, R/G, G/R and the list goes on and on and on. Nate breaks them down plus he gives his insight into why he blogs during the slow period of the trading day and how he sets up his computer.

  • Chapter 3 – Charting & TA

Do you know how to read a stock chart? Do you understand candlesticks? There is important information in them and Nate explains how to read it. If that wasn’t enough he also discusses the importances of former stock runners and the whole and half dollar magnet.

  • Chapter 4 – ABCD & Long Trades

ABCD is just pure GENUIS. It really helps you to make an educated and prepared decision if you decide to go long on a trade. It also helps you to set an excellent risk to reward trade. What is risk to reward you ask? You see I told you this DVD was good.

  • Chapter 5 – Red/Green & Long Trades

Sometimes you have to anticipate when a stock is moving after a set up. Going from red to green can be rewarding under the right circumstances. Add in a stock that stabilizes and perks after a weak open and once again you might see some nice profits. Nate breaks that down plus much much more.

  • Chapter 6 – Shorts and Over Extensions

Sir Issac Newton said, “what goes up must come down”. Nate would probably have revised that theory if Sir Newt was referring to stocks. By the way chapter 6 was my personal favorite.

  • Chapter 7 – Morning Emotion & Faders

When emotions come into play things can go CRAZY. Nate shares what he looks for in a morning panic which can reap very profitable results. However, there are some traps that newbies fall for but Nate breaks them down so you can watch out for them.

  • Chapter 8 – OTC Trading

OTC stocks act differently than listed stocks. Although Nate explains he doesn’t trade them as much as he used to he does share the gap plays, bounce plays and the pumpers who sometimes help to make these stocks volatile.

  • Chapter 9 – Brokers

What broker should I use is the number 1 question I see in Tim Syke’s chatroom. I am pretty sure Nate gets a fair amount of that same question. Luckily not only does Nate break down which brokers to use and why he also has certain deals for new traders.

  • Chapter 10 – Daily Routine & Goals

We all have a daily routine in life but if you are going to day trade you need to be prepared. Nate breaks his entire day down to a T which might seem unnecessary but, on the contrary, is so needed. Plus trading psychology, defining goals and taking profits are all discussed here.

  • Chapter 11 – Websites & Homework

Yes there is homework. Trading isn’t easy but mistakes can be avoided and profits can be bigger if you check the right websites and prepare nightly. Oh and the best part about this chapter is Nate does a watch list live. This is a must watch.

Textbook Trading DVD The Bad  

Nothing or no one is perfect except my wife in case she is reading this review. Nevertheless, the short of it is, the DVD isn’t perfect. HOWEVER there isn’t too much that can make this DVD better. I mean even the cost without the sale is reasonable if you think about all the time and money you will save in the early days of trading. Ok, I do wish there were one more chapter where I could have watched Nate trade live. Although, now that I think of it maybe that can be for another DVD called Nathan Michaud and his Live Trading DVD. Hint Hint. :)

Textbook Trading DVD The Ugly

There are a bunch of texts and charts that really can’t be categorized as ugly or pretty. Actually chapter 3 has a lot of charts with pretty colors in them but that isn’t important right now. Besides, I just wrote that because I am  a huge fan of Clint Eastwood.

Final Thoughts

In case you were wondering I get nothing financially out of writing this review. I am not an affiliate nor am I associated with Nate or his chatroom. I do plan on joining Investors Underground Elite very soon but read my response to being accused of working for Tim Sykes and his affiliates. I tell the truth on this blog. I care about those who stop by and ask questions on this blog. That is why if you are thinking about getting into trading I STRONGLY suggest you purchase Nate’s DVD. It will save you hours upon hours of headaches, mistakes and losses. Let me repeat that. Nathan Michaud Textbook Trading DVD will save you hours upon hours of headaches, mistakes and losses.

Click here to watch a preview of the Textbook Trading DVD and follow Nate here on Twitter to see if any new sales come up.

Disclaimer – These are my personal feelings about the Nathan Michaud Textbook Trading DVD. I am not receiving any compensation nor affiliate income for this review. If you have questions feel free to ask. Thanks. 

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