*Note – This is not a PAID or PROMOTED pump and dump by the people at HEMP. It was pumped up solely by the hype of the cannabis sector. Regardless of why it was pumped, inevitably it was dumped.
I joined the Tim Sykes Millionaire Challenge a couple of weeks ago which you can read here. The studying is intense and sometimes overwhelming but it is super educational on many levels. How is it educational? Glad you asked. For one these pump and dump schemes are well thought out for the lazy, ignorant and looking to get rich quick people. Don’t feel bad I was a part of the lazy, ignorant and get rich quick people and I ultimately paid for it.
Anyway, without getting into too much detail about Tim Sykes and his teachings (you can read about him here) I will tell you that he is the king of shorting stocks. If you don’t know what shorting a stock is read about it here. I will also tell you that the stock patterns that he teaches over and over again so passionately smacked me in the face a few days ago and said, “YOU SEE WHAT I MEAN?”. That is right. My jaw dropped when I was watching HEMP exactly at 9:30. HEMP started upticking for the first few minutes but then I was able to watch my very own Marijuana Dump live because of Tim Syke’s teachings.
Let me clear up some things so you don’t jump to conclusion about where I am in the process.
- I have not shorted a stock yet. In fact I never have.
- I have not traded since joining the challenge except for some IRA stuff.
- I am not promoting Tim Sykes nor do I know him.
- I am a Tim Sykes Millionaire Challenge student with only 2 weeks under my studying belt.
- I will paper trade first then I will use small 100 share positions to refine my newfound skills.
- I am in no rush. Unless we have a depression the stock market will always have opportunities.
Ok I think that clears things up.
Now in case you aren’t aware, the cannabis sector is on fire right now. Even I was able to make a few dollars day trading it before learning about Tim Sykes. However, I have promised myself that I won’t trade again until I learn some of the very important fundamentals of these penny stocks. And even stocks in general. Even though I have traded before I have always felt like a baby on a bike riding on the Autobahn.
What fundamentals you ask? Another good question. I want to learn more about level 2 and I want to have the right broker to make these very important trades when I am ready. Then I will paper trade for a bit and then test out small positions to see if I can get a rhythm. I stated that in my bullet points but it never hurts to remind myself in case my greed starts to creep in.
Ok. Let’s get to the Marijuana Pump and Dump. I have had my eye on a stock which has a ticker symbol HEMP. It was up 700% after a month because Colorado legalized marijuana in January. SEVEN HUNDRED PERCENT. Wow.
Think about it like this. If you go to the store to buy a gallon of organic milk which is normally priced at $5.99 (NYC prices) but find out it spiked to $42 you would ditch the milk idea altogether. Better said you would dump the idea of milk and stick to good old New York City tap water.
Anyway, lo and behold HEMP was DUMPED just like the organic milk idea and I was there to watch it on my trading platform. In case you are wondering I was alerted by Tim’s watch list that HEMP was overdone. Also, remember I had no stake in HEMP at the time but I have been studying Tim Syke’s trading method so I had my eye on it. I can honestly say that the stock HEMP was the first time I was able to find the volume, volatility and chart pattern to align with time.
Here take a look below at what I got to watch real time.
Some of Tim’s student’s made $5000 to 10000 on short selling HEMP. His number 2 millionaire student made $50k. I just watched and cheered as the price came down to reality. Remember there are always other stock plays to be played. When the time is right I will play along.