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.