PHOT Growlife Stock Is Halted

PHOT Growlife stock is halted

PHOT Growlife Stock Is Halted

PHOT Growlife stock just got halted this morning by the SEC. According to an alert by Tim Sykes, PHOT was halted due to stock manipulation. You might be wondering why I am sharing this news especially if you don’t trade stocks yet,  know nothing about the weed sector or Tim Sykes. Well there is a very good reason for me sharing this information.

For the last several weeks Tim Sykes has been exposing a very lucky (& half a million dollars richer) newbie trader (or stock pumper) called the Wolf of Weed Street.

Who?

“I trade mainly on sentiment & leave the more technical aspects to other Wolves, but I do chart. I have a group of traders that pool resources & $$$ to make the #Wolf-Fund. My persona on twitter @wolfofweedstreet only discusses Marijuana related stocks. I Am the Wolf of Weed Street and while I love profits, I hate scammy companies that trade on over hyped pr’s 3x a week and Unicorn farts. I am here to bring balance to the #MMJ universe…But always do your own DD and invest wisely.”

That’s who.

The responses to Tim from fans of the Wolf pack have been the ugliest of the ugliest. People have called him everything from a LIAR to a C–KSUCKER. (much much worse but I am a family man now so…)

You see Mr. Sykes loves to expose stock pumpers and the Wolf of Weed Street fits the pumper profile. The Wolf is a man (nobody knows exactly) who has built up a cult following by sending out free HOT stock picks related to the weed sector. People have made a significant amount of money in a very short amount of time because of his alerts. On the contrary some people have lost a significant amount of money as well. However, Tim has always felt that this was stock manipulation at its worst. Some have called Tim jealous of the Wolf and others have said he was taking advantage of a marketing ploy by exposing Mr. Wolf so aggressively.

Watching this all unfold while I go through my millionaire challenge journey has been an amazing real life lesson. It has taught me about the ugliness of the stock market. It has taught me that you must do your own investigating of all sides. It has taught me to be careful of sheep in wolves clothing. No pun intended. Lastly, it has also taught me that posts like these are a great way for me to share with you the things that you will learn about as a Tim Sykes’ student.

WOW WHAT AN EDUCATION!!!

Anyway, although there is no evidence that the Wolf of Weed Street is the reason the SEC halted PHOT today it is interesting to note 3 things.

  1. It’s in the same sector he promotes.
  2. All of the Wolf’s weed picks have gotten crushed lately.
  3. You can no longer view the Wolf of Weed Street’s tweets as they are now protected.

It might not be the Wolf but it might be someone from the wolf pack. Hmmmm. 

To learn more about what Tim Sykes has said about the Wolf of Weed Street please click here.

To read what the SEC has said about PHOT please click here.

Update – It just keeps getting better. Tim Sykes and the Wolf of Weed Street spoke for a half hour over the phone and Tim apologized for his passionate harsh words. You can read the post by Tim here

 

 

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MY Very Important Stock Trading Lesson

MY Very Important Trading Stock Lesson

MY Very Important Stock Trading Lesson

When I say MY very important stock trading lesson I am specifically referring to stock symbol MY - China Ming Yang Wind Power Group Limited. Yes it’s a play on words but there is a very important lesson that I must share with you. In case you are new to this blog start here then come back.

There are several rules that Tim Sykes and his team discuss often. Cutting your losses quickly, waiting patiently and taking profits are just to name a few. However, there is one lesson that he and many of the other stock gurus talk about ALL of the time. Go in with a thesis knowing your risk reward.

What does that mean? Ok I am glad you asked. It means that you need to set your risk level and reward level as well as understand why you are about to either buy or sell a stock.

A quick excerpt from Tim Sykes’ website about risk/reward before I discuss MY very important stock trading lesson:

“All trading involves a certain amount of risk. The trick to becoming a better trader is to minimize this risk. You will often hear Tim talk about the risk to reward ratio. For example, let’s say you want to buy XYZ at $10 per share. This is a good trade in terms of risk to reward if you see the downside potential only going to $8 per share but believe the stock has an upside potential of going to $15 per share. It is not a good trade in terms of risk to reward if you think it could fall to $5 and only rise to $11.” Click here to read the full blog post on 6 tips to becoming a better trader. 

Ok so if you are thinking of joining the challenge here is a lesson I learned that you might benefit from.

MY - China Ming Yang Wind Power Group Limited is a stock that Tim Sykes bought yesterday afternoon. In his alert he mentioned that it’s an earnings winner. I know from my 2.5 months of studying that earnings winners have many meanings and should never just be used as a means to buy or sell. I also know that no matter how good or bad the news you MUST respect the price action of the stock.

Let’s continue…

MY had been going up all day. In fact there was a 35% increase from day low to day high. After looking at the chart I went to yahoo finance to check out the news. Lo and behold MY skyrocketed because of (slightly better than expected) HORRIBLE 4th quarter results. HUH??? Don’t believe me? Read this. Bad earnings and the stock is up 35%??? Even though I respect that earnings winners mean  different things to different people I couldn’t understand. However, no matter what I understand or don’t I need to respect price action. The price action was bullish regardless of MY’s bad quarterly results.

Then 10 minutes before the market close I got a Tim Sykes Alert that said he bought more shares of MY. WHAT??? WHY??? Listen I respect Tim and I love all that I am learning but boy was I confused. So I dug a little deeper.

I learned from this article (a month ago) China plans to increase installed capacity of wind power this year. That is good news. So mix good news with bad news and you get… who cares what you get. You have to respect price action and that is that.

In any event I came up with a thesis that the bad news was going to sink in after the HUGE run up the day before and I decided that I would short MY if it gapped up in the morning.  So,  I calculated my risk/reward ratio as such:

MY closed at $2.99 the day before. If it gapped to $3.08 I would sell short and cut my losses quickly if it kept going up past its resistance level of $3.18 or $.10 (RISK). On the other side I would buy to cover at $2.88 and take a nice $.30 a share or 10 percent profit if I was correct (REWARD) . My risk/reward was 1:3. 

Here is what happened.

At around 8:45 am today I got another Tim Sykes Alert that he bought more shares of MY with the intention to sell into the morning gap. Remember I am a newbie and this made me nervous but happy but more nervous then happy. I was nervous because he was aggressively buying. I was happy because he wanted to sell in the low $3 range. You see I figured it would be a good thing for me if he sold into the morning gap. In essence I was doing the same thing except I was going to borrow the shares and then sell them. If you don’t know what selling short means then read this detailed definition.

Now on to the morning bell.

9:30 came and my sell short order was set to $3.08. It touched $3.07 and never hit my target price. Then it started to slowly retrace back. $3.05, $3.03, $3.00… At that moment I got another Tim Sykes Alert that he sold all of his shares of MY for a small gain. Then the stock went down more and more and more and more and finally hit $2.88. In fact it touched $2.86.

What did I do?

I kicked myself. I screamed. I then kicked myself harder. You see my thesis was right and I questioned myself. I had a thesis which is exactly what Tim Sykes wants us to learn for ourselves. However, trading isn’t an exact science and because of my nerves in conjunction with my thesis falling short of a penny (remember my target price to sell short was $3.08 but it barely touched $3.07) I chickened out and lost the opportunity for a nice profit. In fact, guess what happened to MY after I kicked myself harder. It tanked all the way down to $2.70.

Lesson learned.

Come up with a thesis, set your risk reward ratio and go for it.

If you have any questions please feel free to post them in the comment section. I try my very best to answer everyone as best as I can.

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I Short Sold My First Stock As A Millionaire Challenge Student

I Short Sold My First Stock As A Millionaire Challenge Student

I Short Sold My First Stock As A Millionaire Challenge Student

It’s official! I short sold my first stock as a millionaire challenge student. In case you are new to this blog, I started the Tim Sykes Millionaire Challenge a little over 2 months ago which you can read about here. Up until yesterday I made a total of 5 trades but none of them was a stock that I short sold. If you don’t know what short selling a stock is you can read about it in detail here. Anyway, I am pleased to announce that I have put my foot in the stock waters and came out with a smile. Here is what happened. (This was not a stock that was on Tim’s watch list)

I had been looking at (ARIA) Ariad Pharmaceuticals, which is not a pump and dump, for a few days because there were rumors of an acquisition by (JAZZ) Jazz Pharmaceuticals. Then I read an article that said Jazz Pharmaceuticals said that they only “reported to be in the mix”. Listen you either want to acquire ARIA or you don’t. Anything in between is bad in my view. It apparently was bad in other people’s view as well.

Anyway, 2 days ago I had noticed that ARIA had started to fade off its highs a bit and couldn’t break past $8.75. In fact it started to down trend right then and there. Then it broke the day high of $8.53 (this is where I should have shorted but got too nervous) and slowly kept going down all day long until it closed at $8.06. I chickened out.

Yes I lost the meat of the move that day but I still felt there was more downside because the next biggest key level would be to see if ARIA could test $8.00 support. My thought was if it couldn’t hang above $8.00 support at the market open then it was a good short for me to get my feet wet with.

At the market open I noticed that it spiked up to $8.25 but felt it was just short sellers covering. Yes I should have shorted right at the top but again I got nervous. Then just like I suspected ARIA quickly retreated. It hung around $8.10 for about 10 minutes and that is when I looked over to 2 fortune cookie quotes that I have on my computer. It says: “Do not be afraid to take that big step” & ” Determination is what you need now”. That is all I needed to hop in.

For 15 minutes my heart beat faster than when my wife gave birth to my kids. I had to do pushups to calm myself down. Ridiculous if you ask me because at best I was prepared to take a $100 loss. Anyway, it went up a few pennies and went down a few pennies but then I saw it was hanging around $8.06 which was the prior day close. I knew that once that broke $8.00 was a goner.

Lo and behold it broke $8.06 and within 5 minutes it broke $8.00. Once I saw a $7.99 print out on the time and sales portion of my ThinkorSwim platform I knew it would take out some stop losses and head lower. Guess what? I was right.

Ok don’t applaud for me too much. Remember my heart was pounding faster and faster before I got in? Well, it kept beating to the point where I pulled the trigger and bought to cover at $7.97. Yes I admit it. I am a wuss but I got my feet wet and I finally short sold my first stock.

Where did ARIA close for the day? $7.75 (Low $7.69)

If you have any questions feel free to ask below. I try to respond to everyone. Thanks for reading.

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I Have Been Scared Trading Penny Stocks

scared trading stocks

I Have Been Scared Trading Penny Stocks

Ever since I started the Tim Syke’s Millionaire Challenge I have been dealing with being scared trading penny stocks. Scared like watching a scary movie scared. Scared like someone was hiding behind the door and screamed BOO scared. Scared like I was getting results back from the doctor scared. Catch my drift? I thought so.

Now, let me make a point about fear and let’s forget about all the money I have blatantly wasted in my life. Forget about the drinking, partying, shopping, gambling dinning impressing and everything else because let’s face it EVERYONE has wasted money at one time or another.

That being said, if I think about all the fear provoking things I have done in my life I ABSOLUTELY MUST QUESTION MY THOUGHT PROCESS THOROUGHLY.

Let me share a few of the things I have done in my many years on this planet to help you understand what I mean.

  • I performed on some of the biggest stages in the world as a salsa dancer. (Example)
  • I commentated for ESPN for 3 years. (Example)
  • I act. (Example)
  • I got married.
  • I became a dad.
  • I became a dad again.
  • Did I mention I got married?

Yes we all have to deal with fear. Yes we all experience it on certain levels. And yes I have persevered time and time again but this trading thing is scary. The point is that I have been scared trading penny stocks ever since I started the Tim Syke’s Millionaire Challenge. Don’t get me wrong I have traded a total of 5 times since January 27th 2014 and I am currently up $306.75 but it’s been challenging.

For example I let 3 no brainer stocks pass me by. YOD, EKSO & ISR were all great short term plays based off of great news. YOD was said to be the next Netflix of China and had a deal with Disney. EKSO was featured on CNN after helping wheelchair bound people walk. ISR announced the world’s first pediatric treatment for metastatic tumors. Yes hind-sight is 20/20 but there was very little downside risk at the time Tim Syke’s alerted them.

Instead I tried playing the “BOUNCE” on BIOF which is one of the riskiest (stupidest) plays in the stock market game for newbies. Luckily for me I timed it perfectly and got out with a $14 gain but man was I scared (and stupid) for 20 minutes.

What the F am I playing a bounce for? I just started trading with the Tim Sykes strategy. None of his videos nor DVD’s promote playing the bounce unless you have experience in the game.

The plan is I need to focus on smarter setups. I need to try to cut my losses quickly if the price action doesn’t go my way and I need to STOP BEING SO SCARED TRADING PENNY STOCKS.

Wait a minute… after reflecting on this post maybe I should consider renaming it

“I Have Been Stupid Trading Penny Stocks”.

Time to get back to studying.

 

 

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Thinkorswim Level 2 for Penny Stocks

ThinkOrSwim Level 2 Data Feed (Penny Stocks)

Thinkorswim Level 2 for Penny Stocks

Before you spend any money on a trading platform with a level 2 data feed specifically for penny stocks read this entire post.

If you are just starting out with the Tim Syke’s Millionaire Challenge (read my journey here) then you know that having a good level 2 data feed for penny stocks is very important. In fact it can make or break you as a trader. However, level 2 data feeds aren’t cheap and they are far from perfect. For example, Speedtrader charges $140, Etrade charges $100 and Interactive Brokers doesn’t have a good level 2 data feed for penny stocks. So, I wanted to share with you what I discovered from all of the research I have done thus far. (Note this might change in the future so please email me or search the site for updates.)

For the last few weeks I have asked about a good level 2 data feed from anyone associated with Tim Syke’s team. I have learned that Speedtrader gets a lot of good press for their data but is losing popularity with day traders for various reasons that aren’t important for this post. In essence, why pay $140 a month for something people are walking away from? In addition Tim Sykes says he has been using Etrade’s trading platform for 14 years because he attributes some of his success to it. However, he discourages against using it because he is only being superstitious.

Ok so here are the facts that you should know so you can make an informed decision about a trading platform. If you aren’t a newbie to day-trading this doesn’t apply because you are more secure in your ways. Please do your own research too. Don’t rely on my opinion as it might change. 

  • I have only been a Tim Syke’s millionaire challenge student for 6 weeks.
  • I have only made 4 trades. Read my first trade here.
  • I still have a lot to learn about level 2.
  • My personal feelings will change as I learn and understand more.
  • Level 2 data feeds can be expensive.
  • Level 2 data feeds aren’t perfect.
  • Level 2 can and are used to deceive so BE CAREFUL.

With all that being said I have learned that Thinkorswim’s level 2 data feed is a nice starting place for newbies. It’s free and you don’t have to fund your account. That means that you can open up a Thinkorswim account without putting money in and get a level 2 data feed absolutely free.

Is it perfect? No it’s not but none of them are. In fact everyone will give you various opinions on it. However, it’s free and it’s a way to learn, grow and explore if you are just starting out.

So, about 3 weeks ago I opened up a Thinkorswim account through TD Ameritrade and I am learning/studying level 2 from there. For your information I contacted Michael Goode (Tim Syke’s 1st millionaire student), Asheya Burton (Tim’s female challenge student up over 100k) and Tim Grittani (Tim Syke’s 2nd millionaire student) to get their take on level 2. They all had different answers that made it more confusing.

However, what pushed me over the edge to go with Thinkorswim was that during a webinar given by Michael Goode it was discovered that the Thinkorswim level 2 trading platform for penny stocks was workable. To date I have not funded the account.

I hope this helps. Please email me with any questions to see how I feel about level 2 today.

 

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My First Tim Sykes Millionaire Challenge Trade

My First Tim Sykes Millionaire Challenge Trade

My First Tim Sykes Millionaire Challenge Trade

I told myself I wasn’t going to make any trades until after I watched all of Tim Sykes’ DVDs. To date I have only watched 12. I also promised myself that I would open up the recommended brokerage accounts and learn level 2 thoroughly before I dove into the stock waters. I opened up a Thinkorswim account specifically for level 2 but still need to learn how it works. That being said, after reading Tim Sykes’ daily watchlist I couldn’t resist when I read:

“PXLW is the big premarket winner today on news of it working with Apple…”

Can you tell why PXLW (Pixelworks, Inc) stood out? If you said Apple you are right. Anything with Apple sounds too good to pass up so I dug a little deeper. Here is what happened.

Tim Sykes sent his daily watchlist at 9:17am which gave me 13 minutes to look at the watchlist before the market open. PXLW caught my eye when I saw Apple was attached. After going to Yahoo Finance I noticed an amazing article written by Seeking Alpha which you can read here. For those of you who aren’t familiar Seeking Alpha has a HUGE following with ties to Yahoo Finance so every time Seeking Alpha posts a good article about a company the stock usually goes up. (Note the word usually)

So, with all of that in mind I opened up my new Thinkorswim trading platform and watched level 2 like a hawk. I can’t say I understood everything on level 2 but I did see that there was a nice amount of premarket support at around $6.25. So, I bought at $6.35 when the stock dipped down in the morning with an exit plan of getting out if the stock pulled back to $6.25 a share. Luckily for me, from the second I bought PXLW it went up. However, when I saw that there was some slight consolidation (after 10 minutes) with no more upward movement I got out at $6.79 by using a random stop loss.

Basically I was a big scaredy cat with no real exit plan on the upside so when I saw the first sign of red I bolted. Why do I say I was a big scaredy cat? Because the stock reached $9.00 at one point during the day leaving $2.21 a share on the table. Better said I left $1105.00 of profits behind. Oh well, I guess it’s better to be scared and up than scared and down.

One last thing. Even though I sold early it’s great that I didn’t hold too long. The next day the stock closed .04 cents lower than my selling point of $6.79.

 

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Simple Short Selling Stock Examples

Short Selling Stock Examples

Simple Short Selling Stock Examples

Timothy Sykes is probably the king of short selling stocks. If he is not the king then he is a top contender who has redefined the way we look at making money in the stock market. So, the question is what is short selling a stock and what does it mean? Well, before I get into a couple of simple real life examples let’s see how 3 top websites define short selling stock.

Wikipedia Short Selling Definition

“Short selling (also known as shorting or going short) is the practice of selling securities or other financial instruments that are not currently owned, and subsequently repurchasing them.”  Click here to read more.

Investopedia Short Selling Definition

“Short selling is the selling of a stock that the seller doesn’t own. More specifically, a short sale is the sale of a security that isn’t owned by the seller, but that is promised to be delivered.” Click here to read more.

Dictionary Short Selling Definition

“Borrowing shares of stock from a brokerage firm and then selling in the expectation that the price of the stock will decline.” Click here to read more.

Are you confused yet? Yeah I know how you feel but those are the basic dictionary definitions of short selling a stock or security. Regardless of what you do know (or don’t) about the stock market you should know the basic definition of short selling so you understand what you are doing if you decide to explore making money with this technique.

Ok now before we get started with a couple of simple real life examples keep in mind that these are not picture perfect examples. Instead, they are examples to help give you the basic gist or idea of short selling stocks. They are only to be used for your understanding of the concept and nothing else. Let’s begin.

Simple Short Sell Example #1

Your friend Johnny just bought a $200 bike.  Coincidently your neighbor Ralph is looking for a similar bike. Knowing all about bike deals you ask to borrow Johnny’s bike and you sell it to Ralph for $200. After the sale is complete you go to the local bike shop and buy the same bike you borrowed from Johnny and sold to Ralph for $150. To close out the deal you give the new bike to Johnny to replace the borrowed one and keep the $50 profit. You just short sold the bike.

Problems That Can Arise from Example #1

Johnny might not let you borrow the bike. (This is known as not being able to borrow shares to short.)

The sale on the bike might have ended forcing you to purchase it at a higher price than you sold it. (This is known as a short squeeze.)

Johnny calls immediately to get his bike back. (This is known as a buy-in.)

Simple Short Sell Example #2

Your best friend wants an Elmo doll to give to his son for Christmas but he can’t seem to find one anywhere. However, you know your nephew has an Elmo doll so you ask him to borrow it until the new year. Then you go back to your best friend and sell him the doll for $50 so he can make his son happy on Christmas. Unbeknownst to everyone but you there is a sale on Elmo dolls so you purchase it for $35. You then give back the borrowed doll to your nephew and keep the $15.

Problems That Can Arise from Example #2

Your nephew throws a tantrum and says NO you can’t borrow Elmo. (This is known as not being able to borrow shares to short.)

The sale ended early because everyone wants Elmo forcing you to buy at any price.  (This is known as a short squeeze.)

Your nephew calls crying how he can’t sleep without Elmo and needs him back immediately. (This is known as a buy-in.)

Were the simple short selling stock examples clear to understand? Do you think you have a better grasp of the concept now? If you don’t throw me a comment below and I will help try to clear things up. 

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I Got Stock Promotion Mailer CNTO After SEC Halted It

Stock Promotional Mailer 1

I Got Stock Promotion Mailer CNTO After SEC Halted It

Backstory. I started the Tim Sykes Millionaire Challenge on January 27, 2014. To date I have read his book, watched countless hours of informative DVD material (given to students), participated in 6 live webinars and learned more in less than a month than I have in all the years I have been investing and trading in the stock market. I have NOT traded any penny stocks based off of Tim Sykes’ method yet as I am still educating myself. Here is an example of a small piece of my education.

Tim Sykes is famous for many things. He is famous for turning 12,415.00 Bar Mitzvah money into 3.5 million dollars playing the stock market. He is famous for being the king of short selling penny stocks and he is famous for highlighting (exposing) stock promotions/promotors.

That being said Tim was doing a webinar and during the webinar he said to his students that he was looking to short CNTO. He showed us the chart pattern and told us the reason he was doing so.

A day later I received an email stating that Tim had shorted 100,000 shares of CNTO at $2.08. Then shortly after (no longer than 24 hours) I got another email from Tim stating that CNTO was halted by the SEC and he was going to BANK.

What does that mean?

  • If you know what shorting a stock is skip below and don’t click here.
  • If you know what trading halts are then skip below and don’t click here.
  • If you know what a penny stock is then skip below and don’t click here.

It means that Timothy Sykes is holding what appears to be a lotto ticket. Better said, when CNTO starts trading again it will either open at a really low price or tank as people who are long CNTO run to get their money back. All the short sellers of CNTO (especially Tim Sykes) will make BANK.

Let me break it down loosely using numbers.

Tim Sykes borrowed 100,000 CNTO shares at $2.08. Then sold them on the open market.
100,000 x $2.08 = $208,000.
He has to eventually give those shares of CNTO back to his broker. If CNTO re-opens at 50 cents a share he can buy them for $50,000.
100,000 x .50 = $50,000.
Then he can give back the shares he borrowed.
$208,000 – $50,000 = $158,000 PROFIT

Note there are fees to borrow shares but the bottom line is Tim Sykes will BANK when CNTO re-opens.

Ok that is all interesting and fun news and I am super happy for Tim being at the right penny stock at the right time (he can’t predict halts) but below is the best stock promotional mailer (and stock education) I have ever gotten in my life. Why? Because CNTO was halted 6 days before I received the mailer.

Now I don’t know John Myers (the name of the person on the cover) and I wish him no ill will. However, I thought it was a good story to share for the people who are reading this blog because the stock promotional mailer came to my home after the stock was halted.

Let’s be honest. The stock mailer is wonderfully designed and convincingly well put together. In fact, if I didn’t know what I know now I would have possibly bought some random shares at some random price to hopefully one day wake up a multi millionaire.

However, that isn’t how penny stocks work. AND… if you read everything on the flyer and I mean EVERYTHING (ESPECIALLY THE DISCLAIMER) you will hopefully know how to make a more informed penny stock trading decision even if you never want to be a trading challenge student or Tim Sykes subscriber.

Anyway, below is the penny stock promotional mailer for CNTO that I received 6 days after CNTO was halted by the SEC. Please click each page to expand the size and read it carefully. Pay close attention to the DISCLAIMER. I even added an enlarged copy of the DISCLAIMER and highlighted my favorite DISCLAIMER part.

Enjoy!

After the disclaimer you will find a link to the day I started my millionaire challenge journey and a video on the day Tim Sykes called CNTO. 

UPDATE – on February 26th 2014 CNTO reopened after being halted for 2 weeks.

Tim Sykes covered at $1.22.

He made $70,000.

Stock Promotional Mailer 1

Stock Promotional Mailer 2

Stock Promotional Mailer 3

Stock Promotional Mailer 4

Stock Promotional Mailer 5

Stock Promotional Mailer 6

Stock Promotional Mailer 7

Stock Promotional Mailer 8

Stock Promotional Mailer 9

Stock Promotional Mailer 10

Stock Promotional Mailer 11

Stock Promotional Mailer 12

Stock Promotional Mailer 13

Stock Promotional Mailer 14

Stock Promotional Mailer 15

Stock Promotional Mailer 16

Stock Promotional Disclaimer

Click Here to Read When I Joined the Millionaire Challenge.

Click Here to Watch Tim Sykes Make a Call on CNTO a Day Before the SEC Halted the Stock.

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An American Hedge Fund: A Millionaire Challenge Student Review

An American Hedge Fund

An American Hedge Fund: A Millionaire Challenge Student Review

“In many ways, the work of a critic is easy. We risk very little yet enjoy a position over those who offer up their work and their selves to our judgment. We thrive on negative criticism, which is fun to write and to read. But the bitter truth we critics must face, is that in the grand scheme of things, the average piece of junk is probably more meaningful than our criticism designating it so.” Peter O’Toole as Anton Ego in Ratatouille

I recently joined the Timothy Sykes Millionaire Challenge which you can read about here if you are interested in an in depth moment to moment journey. In case you didn’t know, part of the required homework (research) is reading the self published book An American Hedge Fund after being accepted in the challenge.

After finishing the book I thought I would shed some light for those thinking about learning or joining Tim Sykes and his team.

First let me say that this book review is NOT based on good and bad. That wouldn’t benefit you (the reader of this blog), Tim Sykes or me to label it as such. I can safely say if you are planning a career outside of finance such as fashion or gardening then “An American Hedge Fund” is not the book for you. However, if you are thinking about finance, banking, trading or making money in related fields then this book is a MUST read.

An American Hedge Fund is a very insightful, funny and truthful journal of Tim Sykes’ life. More specifically the chronology of life events of stock trading. He finely details his struggles, unforgivingly brags about his successes and pleads with you to learn from his mistakes.

Everyone makes mistakes. Even if you do years or research you will make mistakes. Mistakes are what make us better and stronger in the long run. That is why the theme that makes this book a MUST read is learn from his mistakes. Let me restate. If you are thinking about joining Tim Sykes or learning from him I highly suggest you read his book An American Hedge Fund first. It will give you a great sense of risk taking, greed and ugliness that he has put himself through. It will showcase his struggle for control, obsession with money and ever longing hunger for attention. His journey although exciting at times was very dark, sad and down right depressing (in my opinion). In essence stock trading is an emotional roller coaster that can get out of control extremely fast “if you don’t have discipline”.

Timothy Sykes lived the hard part then shed his ego and wrote about it. It’s our job to become disciplined and learn from the successes and more importantly the mistakes to become the best trader we can be.

An American Hedge Fund is a quick read. Do yourself a favor and read it first.  It will save you a lot of time, money and financial pain later.

 

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I Watched A Marijuana Pump and Dump Get Dumped Live

Marijuana Pump and Dump

I Watched A Marijuana Pump and Dump Get Dumped Live

*Note – This is not a PAID or PROMOTED pump and dump by the people at HEMP. It was pumped up solely by the hype of the cannabis sector. Regardless of why it was pumped, inevitably it was dumped. 

I joined the Tim Sykes Millionaire Challenge a couple of weeks ago which you can read here. The studying is intense and sometimes overwhelming but it is super educational on many levels. How is it educational? Glad you asked. For one these pump and dump schemes are well thought out for the lazy, ignorant and looking to get rich quick people. Don’t feel bad I was a part of the lazy, ignorant and get rich quick people and I ultimately paid for it.

Anyway, without getting into too much detail about Tim Sykes and his teachings (you can read about him here) I will tell you that he is the king of shorting stocks. If you don’t know what shorting a stock is read about it here. I will also tell you that the stock patterns that he teaches over and over again so passionately smacked me in the face a few days ago and said, “YOU SEE WHAT I MEAN?”. That is right. My jaw dropped when I was watching HEMP exactly at 9:30. HEMP started upticking for the first few minutes but then I was able to watch my very own Marijuana Dump live because of Tim Syke’s teachings.

Let me clear up some things so you don’t jump to conclusion about where I am in the process.

  • I have not shorted a stock yet. In fact I never have.
  • I have not traded since joining the challenge except for some IRA stuff.
  • I am not promoting Tim Sykes nor do I know him.
  • I am a Tim Sykes Millionaire Challenge student with only 2 weeks under my studying belt.
  • I will paper trade first then I will use small 100 share positions to refine my newfound skills.
  • I am in no rush. Unless we have a depression the stock market will always have opportunities.

Ok I think that clears things up.

Now in case you aren’t aware, the cannabis sector is on fire right now. Even I was able to make a few dollars day trading it before learning about Tim Sykes. However, I have promised myself that I won’t trade again until I learn some of the very important fundamentals of these penny stocks. And even stocks in general. Even though I have traded before I have always felt like a baby on a bike riding on the Autobahn.

What fundamentals you ask? Another good question. I want to learn more about level 2 and I want to have the right broker to make these very important trades when I am ready. Then I will paper trade for a bit and then test out small positions to see if I can get a rhythm. I stated that in my bullet points but it never hurts to remind myself in case my greed starts to creep in.

Ok. Let’s get to the Marijuana Pump and Dump. I have had my eye on a stock which has a ticker symbol HEMP. It was up 700% after a month because Colorado legalized marijuana in January. SEVEN HUNDRED PERCENT. Wow.

Think about it like this. If you go to the store to buy a gallon of organic milk which is normally priced at $5.99 (NYC prices) but find out it spiked to $42 you would ditch the milk idea altogether. Better said you would dump the idea of milk and stick to good old New York City tap water.

Anyway, lo and behold HEMP was DUMPED just like the organic milk idea and I was there to watch it on my trading platform. In case you are wondering I was alerted by Tim’s watch list that HEMP was overdone. Also, remember I had no stake in HEMP at the time but I have been studying Tim Syke’s trading method so I had my eye on it. I can honestly say that the stock HEMP was the first time I was able to find the volume, volatility and chart pattern to align with time.

Here take a look below at what I got to watch real time.

Marijuana Pump and Dump

Some of Tim’s student’s made $5000 to 10000 on short selling HEMP. His number 2 millionaire student made $50k. I just watched and cheered as the price came down to reality. Remember there are always other stock plays to be played. When the time is right I will play along.

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