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.

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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!


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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Is Tim Sykes A Scam Artist

Is Tim Sykes A Scam Artist

I received a negative and uninformed comment on this blog post. I could have deleted it but I decided to address it for several reasons that I will share with you below. In short I want this to be an open and honest forum for questions about the Tim Sykes’ Millionaire Challenge and not a slice of perfection blog. Here is what the comment said and my response.

“Jai is obviously one of Tim Sykes business partners/affiliates. Purely on this thread to market Tim Sykes scam challenge. Can’t believe people are too stupid to see this…” 

“I am in no way affiliated with Tim Sykes nor do I receive any business or affiliate compensation for anything that I write on this blog. However, there aren’t too many people that will read this entire thread which means they will miss your lack of research and my response to it. So, I will do a blog post addressing your accusations of Tim scamming his students and me profiting from it.”

There are 3 accusations to this comment. The first accusation is that I am affiliated with Tim Sykes and receive affiliate money. The second is that Tim Sykes is a scam and the third is that you (the readers) are too stupid to see that I am lying to you (the readers). Because this person was the  91st comment on the blog post I thought most people won’t get a chance to read it so I chose to comment more in depth to clear up the lies. Before I address the Tim Sykes scam challenge accusation let me address the other 2 accusations first.

Am I Affiliated/Partner Of Tim Sykes

This is a really ignorant comment. Don’t get me wrong I am not trying to be mean for the sake of being mean because I accept all comments. The comment is just dumb. I began the challenge on January 27 2014 and have just started to get my feet off of the ground with his techniques. I have studied my ass off watching videos, DVDs, webinars, reading, charting, preparing watchlists and asking questions. In essence I am still a newbie. So, to be clear I am not an affiliate of the Tim Sykes Millionaire Challenge. I do not receive money from Tim nor anyone affiliated with Tim. I haven’t applied to be an affiliate either and as of today I don’t plan to. Let me go a step further. Tim Sykes if you are reading this please don’t let me become an affiliate until I can prove to you and myself that I am successful with your teachings. I hope that clears that up.

Are You (The Readers) Stupid For Believing Me?

I think it’s fair to say that I have been honest and open from the beginning with everyone who comments on this blog. I have answered them quickly,  thoughtfully and with honesty. You would be foolish not to believe me but you would be even more foolish if you just believed me and didn’t do more research. That is right… Research everything you can about trading and Tim Sykes. Google/Bing/Yahoo everything you can about him. Ask questions, talk to other bloggers and find out the good the bad and the ugly or else you might feel stupid for not doing so.

Is Tim Sykes A Scam Artist? 

Had the person who placed the negative comment on my blog asked me if Tim was a scam artist I would have spent the time to respond. I would have thought that was a very good question. It’s normal to think like that and that is the type of research people need to do. However, he made a bold faced accusation which assumes he knows something I don’t after I spent hours upon hours upon hours researching all I could about Tim Sykes.

You don’t believe me! Here are 3 blog posts you can read that will give you a glimpse of the type of research I did before I joined the challenge.

Tracey Coenen wrote this and this.

Michael Goode wrote this and Tim Sykes responded every step of the way.

Tim Bohen talks about Tim Sykes here.

Now, it’s obvious from my profit.ly chart that I haven’t traded much but in the few months that I have been training I have learned more about trading and the stock market than all the years I have been dabbling in them. The education I have been getting has changed me forever. I know for a fact that I will never blindly lose money in the stock market again. That is right I will never trade another stock BLINDLY and if I am wrong on a trade I will cut my loses quickly so I never suffer an account blow up.

Ok let me break it down to you like this. In case you weren’t aware I have made money in the stock market before but I have lost too. However, back then I never knew why I won some and why I lost some. I remember years ago I traded DoubleClick and made $20,000 in 1 day and lost $10,000 the next. I just blindly bought and sold and never really knew what I was doing. I didn’t really care because money was coming in but there was one big loss that ultimately changed my life forever.

I bought shares of ETRADE Etradein 2008. Take a look at the chart. Without even knowing a thing about trading you can see exactly what happened. After ETRADE tanked I held it for 5 years. FIVE YEARS! I even stopped trading because I felt defeated, stupid and ultimately poor. At that point I decided that I was going to leave my positions as they were and closed up the idea of making money in the stock market. In essence, I was known as a bag holder. According to Investopdeia a bag holder is an informal investment term used to describe an investor who holds a position in a stock which decreases in value until it is worthless. ” 

Then one day in 2012 I decided to start learning and studying to be a smart trader because the economy was getting stronger. Luckily for me ignorance was bliss as most of my account had either come back or was up because, remember, I was bag holder on every position I had. However, ETRADE was still down BIG. I finally cut losses on ETRADE in December 2013  and that is when I swore to myself that that type of loss would never happen again and it won’t thanks to Tim Sykes and his teachings.

So, is Tim Sykes a scam artist? After 4 months of being a part of the millionaire challenge I have seen Tim help, confess, enlighten, educate, brag, indulge, spend, yell, congratulate, warn, expose, joke, market, care, alert, lose big, and win BIGGER but I have never seen him scam.

Tim Sykes is not a scam artist.

Do your research, ask me questions but please don’t write ignorant accusations that don’t help people learn the truth!



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My First Stock Trading Loss Doing The Millionaire Challenge

My First Stock Trading Loss Doing The Millionaire Challenge

My First Stock Trading Loss Doing The Millionaire Challenge

“The only thing to do when a person is wrong is to be right, by ceasing to be wrong. Cut your losses quickly, without hesitation. Don’t waste time. When a stock moves below a mental-stop, sell it immediately.” – Jesse Livermore

It is official. I had My First Stock Trading Loss Doing The Millionaire Challenge. My first real loss I should say. I took a loss of commission in March but that’s no big news. Ok… Let’s get a few things straight so you know where I am coming from. The first thing is I have taken many stock losses over my lifetime so this is not new. The second thing is I HATE losing money which also isn’t new. The third thing is my losses in NO WAY reflects Tim Sykes and his challenge. On the contrary I feel my first real loss doing the millionaire challenge highlights the better parts of the Tim Sykes millionaire challenge. Yes we all want to make money and that is fine and dandy but it’s about learning the rules and sticking to them. Ok let’s begin.

I actually traded 2 stocks today and unfortunately I lost on both. I will discuss the 2 but the big one is more important. Remember I HATE to lose money but I don’t paper trade stocks while I develop my skills. When you practice with real money and lose OUCH is what you get but OUCH is what you learn from. You see I feel the emotional factor is a HUGE part of trading and my learning curve so I cut out paper trading altogether. If you haven’t read the post I wrote regarding paper trading then click here first and then come back and read about the good, bad and learned lessons from my stock trading losses.

ARIA Ariad Pharmaceuticals Inc.

I have had ARIA on my watchlist for quite some time and I made $94 short selling it last month. If you don’t know what shorting a stock is then read here so you know what I am referring to. Why do I have ARIA on my watchlist you ask? I look at it daily because it allows me to learn from how volatile it is without too much volatility. It’s more of a practice stock for me but after my loss I might have to rethink my thought process and practice with good setups as they come.

That being said I decided to short sell ARIA again based off of the resistance and support levels I had set for it. That in conjunction with the level 2 indicated to me that it might be headed back down. I broke a rule and anticipated because I didn’t wait for the stock to go from green to red on the day. In addition I had a bit of bad luck and timing as an article from Seeking Alpha praised the stock 15 minutes after I shorted it. In a nutshell I was dead wrong.

The Good Part of My Stock Trade Loss of ARIA 

  • I cut my losses fast. I actually should have cut them faster but in fairness I originally told myself to hold out a bit longer but forced myself to follow the rules and cut losses when it hit my risk level. Luckily for me I cut my losses because it went up another .24 cents which would have been another $240 loss.
  • I am learning by trading real money. You can’t learn to maneuver a car unless you get inside of an automobile and drive it. No paper trading remember!
  • I finally made my first loss. HUH? Hear me out. I had mostly green on my Profit.ly chart up until now. Nothing significant but I always thought to myself I know one day I am going to lose. Well here it is and I lived to blog about it.
  • I stayed relatively calm. I get nervous when I am thinking of trading a stock and have convinced myself a few times to not trade. In hindsight I lost a lot of potential money from my nerves but I am learning to stay calm.
  • I was wrong and I admit it. You might think that being wrong is bad but it’s good to admit when you are wrong and move on so I put this on the good side.

The Bad Part of My Stock Trade Loss of ARIA 

  • I was wrong. Yeah I put it on the good side but COME ON don’t believe the BS I wrote about admitting blah blah blah… I was still dead wrong.
  • I can’t lie I HATE losing money and it doesn’t feel good. It actually makes me feel a bit bruised, sad and vulnerable.
  • Not a smart trade set up in hindsight. My risk to reward wasn’t too good to begin with so I probably should have just left it alone. Had I made money I might be more tempted to trade this all the time. I am not saying I won’t trade it again but I need to let the trade come to me. I pushed.
  • I didn’t realize that at 10:15am Seeking Alpha posted a good article on ARIA which you can read here. I got into the trade around 9:55am. Bad timing but there is no real way I could have known that Seeking Alpha was posting about the stock I was trading.
  • I should have cut losses quicker. I set a numerical stop loss on my trading account instead of hawking the level 2. I had a feeling something wasn’t right (Seeking Alpha) and should have bailed out about $50 earlier.

The Lessons Learned From My Stock Trade Loss of ARIA 

  • I learned that I need to set my risk to reward levels better. I will take my losses but hold out for my gains until I come close to or hit my goals.
  • I learned I need to wait for good setups. A very wise trader once said, “it only takes one time to get rich… no need to over trade.”
  • I learned to look at Seeking Alpha a little closer now. They move stocks and one must stay diligently on top of their game if they want to trade for a profit.
  • I learned and will continue to learn how to control my emotions and not freak out. I am sure I will need more practice but I am pleased to say I stayed calm.
  • I learned that it is very therapeutic to share with you my successes and failures.

Well that is about it. What happened to the other stock you say? Oh yeah… I traded AVNR Avanir Pharmaceuticals, Inc. Here is what happened in a nutshell. I had AVNR on my watchlist and I noticed toward the last hour of trading that it had spiked 5% in a matter of minutes. Then I noticed the level 2 showing that there was a turn of events and the sellers were stacking. So, I decided to short in hopes of recouping some of my losses from earlier in the day. In addition, I also thought it was good practice with an upside financial potential.

I am happy to say I was dead on reading the level 2 which gave me clues that AVNR might be ready to head back down. To a degree I was right. The sellers came in hard but the buyers fought back. For 50 minutes it consolidated and stayed in a 2 to 3 cent range. When it didn’t fall back 5% or do what I expected it to do I bought to cover with a $10 loss and loss of commission. The stock will probably head back down from my short at $4.63 but I didn’t want to hold overnight.

All in all AVNR wouldn’t have been a big winner but it was a good stock training lesson which I was proud to experience.

If you have any questions please leave it in the comment section below. Thanks.  



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Why I Don’t Paper Trade Stocks

Why I Don't Paper Trade Stocks

Why I Don’t Paper Trade Stocks

Note – I made a foolish trade yesterday on stock (SVU) SUPERVALU Inc. I just started scanning some stocks which is new for me. I found 5 in total the night before. Too much for a newbie trader. Anyway, I entered too late into the trade after the morning rush. Fear and feeling overwhelmed contributed to the mistiming of this trade. Yes I ended up with a $24 gain but not a smart trade all in all on my part. However, this is the reason I am writing this post.

There are many reasons we decide not to do things in life and I found a real personalized reason why I don’t paper trade stocks. Now to make myself clear I have nothing against paper trading stocks and I think it can work for those individuals who fit certain criteria. Off the top of my head I can see someone paper trading who might have a really small account with very little wiggle room to lose money. I mean they do say that practice makes perfect, so better to make perfect with paper money if you don’t have a lot of real money to practice with. However, if you are torn between paper trading stocks or trading with real money this will help you understand why I don’t paper trade stocks.

I am an emotional man. There I said it. No, don’t get me wrong I don’t mean I’m bi polar, psychotic or Nathan Lane in The Birdcage. No what I mean is I have a wide range of emotions running inside of me at one point or another. Let me explain. When my kids were born I was the happiest man on earth. Everyone in the world was perfect to me. I talked to strangers in the elevator, lobby and New York City streets. That’s not all. I get painfully angry when my daughter accidentally hits me in the jewels while we are all sleeping in MY bed. Hold on I have more. I am embarrassed when my son picks his nose in the elevator because (embarrassingly speaking) he probably learned that from me. And every time Jimmy Stuart finds Zuzu’s pedals in his pocket in It’s A Wonderful Life I get super misty. No it’s true. It gets me every year.

Ok ok…, I know what you are thinking. How does this all relate to why I don’t paper trade stocks? Here it is. Paper trading stocks would remove the emotional element to my trading. You see I get very nervous when I am trading stocks to the point where my heart feels like it’s dying to get out and slap me in the face for making it work harder than it wanted to. Don’t believe me? Check out this blog post I wrote here. I mean let’s be real. Have you ever given someone profound advice and then found yourself in the same exact situation that you were advising on but now can’t take your own advice? I hate to brag but I am a GENIUS with my advice when I am not emotionally invested.

Anyway, it’s that simple for me. I get too emotional and if I paper trade I won’t learn how to channel the emotion nor will I have a personal point of view in the stock trade. Yes paper trading isn’t bad and maybe YOU should do it for a while for personal reasons but I choose not to. I would rather test the (stock) waters with a very small position with real money on the line to see if my thesis was correct. Who knows I might even make a few dollars in the process without having a heart attack. :)

If you have any questions please place your comments in the comment section below. Thanks.

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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.


“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.


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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