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.

Important Resources

  • Read my frequently asked questions or if you need personal 1 on 1 guidance from me on how to fully prepare as well as protect yourself from the misrepresentation please click here.
  • Every month I update this post here for my personal "Millionaire Challenge". I suggest you read the entire post and when you reach the bottom you can see my updated progress.
  • I highly recommend the Simple Path to Wealth book to grow Your wealth simply and steadily. It will educate you beyond your financial imagination. This is my review of the book.
  • If you are new to stock trading test your knowledge here with a basic stock market quiz.
  • There are a lot of secrets in trading stocks and I reveal 20 of them in this popular post.
  • If you are confused about short selling stocks then read this simple explanation that will clear it all up.
  • This free stock research tool will give you all the necessary information on any stock you type into the search bar.
  • Do your best to avoid day trading distractions. Especially the 10 I list here.
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14 thoughts on “I Short Sold My First Stock As A Millionaire Challenge Student

  1. Good for you getting your feet wet on shorting and making money at it the first time doing it.
    Thanks so much for your candid and upfront honesty your progress, keep the updates coming.

  2. Thank you for sharing your experiences so far. I have been reading about day trading techniques for a few weeks and trying to learn Ninjatrader. Some of the best advice I’ve come across is to set a stop and let your winners run. I wish you the best and keep up the blog!

    1. Hey Mike. Thanks for stoping by. I don’t know about Ninjatrader much but I hear it is pretty good. Careful with stop losses as they aren’t always reliable. Research it more so you lessen your chances of any unwanted surprises.

  3. Hey Jai,
    I’m a graduate university student and have been reading more and more up of Timothy Sykes. I myself, have no trading experience at all, and absolutely no knowledge in the trading/stocks department. I am very keen to begin to learn about it from the very, very basics. Do you have any recommendations? I’m obviously in no rush to trade, and would never contemplate doing so until I know enough, which could obviously be several months to years. I am just wondering on what your recommendations are for me starting from scratch to get the basic info on trading and begin to learn? I would pay for Tim Sykes silver membership but I have a feeling his training isn’t for those who have absolutely no idea about trading etc. Thanks mate

    1. Hi Tim. Thanks for stopping by and sharing your story with me. I would suggest you learn everything you can about Tim Sykes and trading his strategy. The good the bad and the ugly. If you google his name with certain concepts I am sure you will find tons of things. For example “Tim Sykes pump and dump” or “Tim Sykes short sell”. I myself have only traded 6 times since I started in late January. I am in no rush and continue to learn and study daily. Here is the thing though. I am doing the work. I am looking, watching, reading, studying, charting, plotting, asking questions and a lot more. In essence I am active in my process. Tim Sykes doesn’t trade for you. You will feel scared lost and confused, but it gets better as you grow. Keep in mind, he trains you to think for yourself and eventually be independent. Now will his service help you. I truly can’t answer that. I was only a silver subscriber for 2 weeks and quickly realized I needed to be fully involved or I would feel lost. So, I applied and put myself in. Personally I am glad I did it. I have learned much more in the last 2.5 months then I have in 20 years in trading. Why? Because I never bothered to learn. I just invested and hoped and prayed my investment would go up. Now I know that is not how it works. I hope this helps you Tim and once again thanks for stopping by. Please stop by in the future and let me know how you are doing with trading.

  4. Jai,

    How are you liking ThinkorSwim? Is it working well for you? If you were to choose a different platform, what would you have gone with? I hear a lot of great about TOS. What, if any, are the cons for this platform that you have noticed?

    1. Hi Kenny,

      I love the platform. I have never funded the account but the charts are great. The live news is a nice touch. I hear the level 2 lags which is a downfall but I haven’t gotten deep enough into trading to have that make an impact. I truly don’t know which platform I would use but I can say this… I will use TOS for charting, news and possibly scanner for now (which isn’t half bad).

      Michael Goode told me Investors Hub was great for level 2 but I haven’t compared them yet. I might make the switch.

      To be continued I am sure…

  5. Hi Jai,

    I’ve been reading through your blog about your journey as a challenge student. I am thinking about going through with it but have a question. I bought Tims videos and am in the process of finishing them up. Keep in mind that I am a complete amateur at trading. Do you think its still worth the $5K to join as a student or just sign up for the Pennystocking Silver?

    What I’m trying to avoid is spending $5K for material I already have. I’d rather invest it but want to make sure that being a student is much more. Thanks for your help!

    1. Hi Ben. Thanks for stopping by. I am not 100% sure if Penny Silver allows you weekly webinars. I don’t think it does. I know it includes weekly video lessons but the goods are in the webinars too. You see one of the benefits of being a challenge student is you get weekly webinars with Tim, Michael and now Tim Gritanni. And you get to trade live with Tim. I did it a few times. It’s super fun and educational.

      I can’t lie… that alone is worth more than 5K to me. It has saved me countless hours of headaches and extra learning. So, to answer your question, if Penny Silver gives you the webinars than yes go for PS and skip the challenge. However, if it doesn’t include the webinars then I highly recommend you apply for the challenge to get webinar access.

      Also just so you know when I joined I had already joined Penny Silver so they credited me the difference so I didn’t have to pay 2x.

      One last thing… I want you to know you are investing in your education and not a get rich quick scheme. Trading is very very tough and very emotional but if you follow the rules closely you will see so many benefits for years and years to come. I am finally at the stage where I see the light.

      I hope this helps. Feel free to stop by and let me know what is going on with your journey.

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