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. 

Enjoyed this post? Share it!

 
 

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!

 

 

Enjoyed this post? Share it!

 
 

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.  

 

 

Enjoyed this post? Share it!

 
 

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.

Enjoyed this post? Share it!

 
 

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

 

 

Enjoyed this post? Share it!

 
 

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.

Enjoyed this post? Share it!

 
 

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.

Enjoyed this post? Share it!

 
 

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.

 

 

Enjoyed this post? Share it!

 
 

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.

 

Enjoyed this post? Share it!

 
 

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.

 

Related Posts Plugin for WordPress, Blogger...

Enjoyed this post? Share it!