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.

 

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9 thoughts on “My First Tim Sykes Millionaire Challenge Trade

  1. Hi

    Just wanted to say thanks for writing these blogs. Really nice to see someone else just starting. Your about 2 months ahead. I have a friend who does the Sykes program and I just heard about it a month ago. Really hesitated to take it seriously because of all the hype but after researching it seems pretty good if you’re willing to put the time in. I’ve watched penny sticking duex, and a few free videos but like many I only have a really small amount of money so can’t get all the DVDs. Was planning to maybe do the silver right now. Can’t afford the challenge. Unfortunately I can only find my account with around 2000 total so I’ll be stuck under those stupid (3 trades a week rule).

    Had a couple questions for you:

    - does the thinkorswim have a monthly cost or a software cost? Or do you just have to open an account ? Couldn’t find on their website.

    - it looks like you put in around 2000 on that trade, is that right?

    • Hi thanks for the comment and congrats. Let me start by saying you can do this without being a challenge student. It will be tougher but be diligent and every time you have a question about a topic google it with Tim Sykes’ name. That way you can see what comes up. Also google it with Michael Goodes name too. He is very informative.

      As for TOS I just opened up an account a week ago just for the level 2. I am in the test phase of it to see if it is doable without having to pay a monthly fee for a trading platform. So, yes the software is free and on test 1 with the live webinar it passed. Today there will be another webinar and I will test it again.

      I don’t know exactly how much I put in on that trade however it was more than 2000. I had 500 shares so I gather it was near $3500.

      Lastly to get around the PDT rule you can trade conservatively. For example I could have bought the stock on the day that I did and sold it the next and that would NOT have counted towards the PDT rule. Even though the stock pulled back I would have made much more money.

      The lesson? I need to learn more rules.

      I hope this helps.

  2. Congrats, and thank you for posting your experience with his program. It is a benefit to have your anecdotal experience for those of us who are contemplating engaging in one of his plans. If you care to comment, I would love to hear your opinion about the potential added value of becoming a student rather than being a Silver subscriber?

    • Mike that is a great question. There are a lot of factors that go into answering. Risk tolerance, account size, job, kids, a life… are all factors that one needs to consider. Why spend $5500 if you don’t have the time nor money to invest? Ironically he teaches to be independent but we feel the need to follow him. We are scared. I know I am but that is good. Real good. In addition, he teaches you to find trading ideas based off of the patterns he gives and has tested, refined and tested over the years.

      There is a TON of information that comes with being a challenge student that you don’t get being silver sub. You get 25+ DVDs (122 hours), 2 weekly 2 hour live webinars and 2 of those times he does live trading. He answers questions and refers you to his 1500+ video lessons in his library. You have access to Michael Goode who is his first millionaire student. He has been helpful for me. I am not going to lie. He is tough on his students. He isn’t always nice but to me that is good. He is brutally honest and that I am thankful for.

      Anyway, after a month and a half (I joined Jan 27) I still have many many hours of studying to do. I might have accomplished 40% however, I go back a lot when I need to lock it in better.

      Ok so what does this all mean? Can you learn it on your own? Yes but it will be tougher. However, if you decide to just use the silver subscription follow these rules I am giving you now.

      Study study study and then study some more. Don’t blindly follow his trade alerts. Let me repeat. DON’T BLINDLY FOLLOW HIS TRADE ALERTS. Trade small and cut loses quickly. If the stock isn’t doing what you thought it was going to do better to be out fast for a small loss then wondering why it keeps going in the wrong direction. Lastly read Tim Grittani’s blog which you can see here. He is Tim Sykes’ 2nd millionaire student (now up 1.6 mil) and has a world of information to offer for free. I hope this helps. Please keep me posted.

  3. Jai, thank you for taking the time for writing this thoughtful response. I hear your advice loud and clear. I’ve actually already watched many of his dvd’s and I believe that I have a pretty good grasp on his overall strategy and I’ve spent countless hours reviewing the various materials that are made publicly available. I have a bit of a leg up I suppose as I have finance background and I’ve worked in the industry that he’s bashed time and again, mostly rightfully so. Although I am very familiar with the fundamentals of long term investing, I’m not a trader (yet) so I have much to learn about strategy, trade execution and the “x factor” that you can only get by experience in the trenches. My feeling is that taking on an endeavor as such really requires an “all or nothing” approach. Unsatisfied with my current work (and many call me crazy for this) I am actually considering leaving my comfortable job to trade full time. I have a wife and a newborn son, so this idea gives me a bit of anxiety but it also gets me fired up. I simply don’t have the flexibility in my current role to successfully “experiment” with trading as I’m often traveling (international) and when I’m not the office is a particularly cut-throat environment that would not be conducive to stepping away to execute trades. Also, I’m not sure if it is advantage or disadvantage but I am fortunate enough to have somewhat sufficient, but not overly excessive “start-up/fall back” capital (approx $130k) and my wife has a steady job that provides adequate benefits and decent salary. However for someone that has been “institutionalized” in terms of education and career for most of my life (~36yrs) the thought of leaving the comfort and security of a steady job to take a risk to pursue something that I have no proven success doing is equally terrifying and exciting. From your original post, I sense you probably went through some similar considerations. The funny thing is that the two things that scares me the most are the execution risks and the regulatory risks. More specifically I’m concerned that I won’t be able to consistently secure “hard to borrow” shares and I also fear the reality of regulators (namely the SEC) further tightening securities laws surrounding short selling, particular of micro-cap companies. Anyway, I am going through a contemplative period and your insights and experiences are invaluable. Thank you again.

    • Congrats on your newborn. Yes I can see we have a lot in common. Although I can’t tell you what is good for you and your family I can tell you this. Borrowing shares to short isn’t always easy. That is why TS made this song which you will appreciate here. Also short selling isn’t going anywhere although the SEC and others are trying to scare people into thinking so. However, let’s assume that they rid short selling. Tim Sykes has banked going long just as much as going short. The key from what I see, mind you I haven’t shorted a stock yet, is finding the chart patterns and making the appropriate trade with a set risk to reward ratio. I have watched TS get out of a trade live when it wasn’t going his way. I also watched him make 3k live in 5 minutes. Anyway, I hope this helps and look forward to hearing about your journey as my takes off.

  4. First off, that video is good stuff, especially the bit about Jarrett. Tx for that.

    Regarding the regulatory concern – I guess I’m more concerned about the SEC creating further disincentives for brokers to offer shorts rather than an all-out ban but I catch your drift.

    I’ll let you know if and how it goes! Good luck to you, I look forward to following along with your progress.

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