– [Tim] Good morning, Tim Sykes here, filming this around 11:00a.
on Thursday, April 16th.
Yesterday was my birthday, so thank you for all the birthday wishes.
Wanted to just do a quick video on how trading is not a 9:00 to 5:00 job.
It should not be thoughtof as a 9:00 to 5:00 job, it should not be practicedas a 9:00 to 5:00 job.
Instead, you really need to study the past and study the current market so that you can sit on the sidelines and only trade when there is a good setup.
What is a good setup? Well, that's different for everybody.
Some people like buying breakouts, some people like buying morning panics.
Some people like buying first green days some people like shorting first red days.
Some people like shorting pump and dumps.
Some people like shorting these stocks that get overextended and theyjust hold on to their shorts for several days or several weeks.
Tim Lento, for example, he's closing in on half a million in profits.
So, you have to choose whatpatterns work best for you.
And yesterday I missed CHCI.
I alerted it in the chatroom, I was like, “Just missed my execution in the threes, ” and then when it got tothe fours, I would be like, “If I had gotten executed, I would be selling.
” And then I chased it a little and got a little undisciplined.
This is not an exact science.
Chased it in the fives, but I cut losses quickly when the breakout was weak.
Even though actuallyit did go to the sixes, so I was on the righttrack, not totally wrong.
But I chased it.
And then, overnight, I was asked a lot, “Are you gonna have a position?” But it was closing low, fading into the close.
This is terrible priceactions to take overnight.
For all I know, as much as it spiked and as good as the earnings were, for all I know they'regonna do a capital raise or financing or something.
Or there could be some bad overnight news.
I mean, it's still in the 240s, 250s, up from the 160s.
So it was still up, but the question was, could it really re-spike? And today, I wasn't sureif it could re-spike, but it's had not one buttwo big attempted spikes.
And I actually made twogrand on the first one.
Like I said, I'm filming thisa little after 11:00 a.
, so the market's been openfor less than two hours, and I'm pretty much done on the day, at least in the morning.
I try not to trade midday.
I locked in a little over $2, 500, now up $80, 000 plus on the year.
Just wanna talk about afew people in the chatroom.
Some of you guys are wanting to donate to my favorite charity, which is Direct Relief, I appreciate that, right now.
But, this is what's more important, or most important.
Jackaroo, he's one of mynewest six-figure students, now made over $300, 000.
He made $800 bucks today.
Good day, not to fight tostuff, up $800 in calling it.
By 11:02 a.
Okay? This is what I want you to learn, whether you make $2, 000 like I have today, or $2, 500, or $800.
You're trying to take a few hundred or a few thousand dollars and that's it.
You can't get greedy.
Sometimes there's gonna be more plays.
But you gotta learn to walk away.
And I'm just scrolling through here.
It's been a pretty amazing few days, but let me just give you an example.
Like here's Titan06 on MOSY, in at 3, out at 3.
30, making 10% on MOSY.
And MOSY was one of thebiggest spikers today.
He sold way too soon.
It went all the way up to the fours.
But he still made 10%.
That's pretty sweet.
The Tim ALerts's chatroomis going crazy too, there's so many of you, I'msorry if I don't catch up with all of you right away, I know that you're all messaging me, but this is why I do Qand A webinars weekly with my challenge students.
But this is cool, Titois trading the LTRBP.
I would be very careful with that.
But this is a crazy supernova.
And this one is spiking multiple times.
Yesterday it went fullsupernova from five to the 120s, back down to the 15s, then today back up to 100.
I mean, this is all over the place.
And what you have to learn is that, it's not about the qualityof these companies, what they're gonna end up as, it's using the volatilityand using good patterns.
So some people caught the initial spike.
I would be very careful abouttrying to short these stocks.
I saw several other chatrooms, a lot of people mock how many video lessons I have.
And they're like, “It's just easy, “just short anything that goes up.
” And I saw a lot of chatroomstrying to short this in the 40s and the 50s, and then it got up to the 100s, and they literally blew up.
Then it came down and they're like, “See, I told you it would come down.
” Then today, back to 100.
So if you wanna short, by all means do it.
I've made millions shorting.
But I would be very, very careful right now.
I love this, Overland, inEDNT, $3.
87 out of $4.
20, taking 8%-10%, and he's three and O today, time to slow down.
So, this is what I have toget you guys to understand, this mentality of taking singles.
Here's AV1Trades, oh, that was actually, he was reviewing my trade.
And sorry, I have a sticky three, so I didn't get out ofKBLB at .
33, it was .
31, but my three key stuck on my keyboard.
(laughs) I need a new laptop.
But I corrected the typo.
I'll be real with you, no matter what happens.
Some people are like, “Why are you talking about “a stupid little typo?” Because I wanna be real with you.
That's what this is, about being real in an industry full of fakes.
That's why we show every trade.
It's not enough just for me to say, look I made $2, 000 today.
You can see every singlepart of this trade, right? You can see how much I'm risking.
And to make $2, 000, I'm notusing $1 million account, okay? I put in roughly $18, 000 on this one.
And I know that's a lot to some people, but you can put in $1, 800and still make $200.
It's not an exact science.
The whole key is, canyou make a few hundred or a few thousand on these plays? And CHCI was a nice one.
I'm trying to go through here.
Here was CTrenary, oneof my female students, in PDSB at 1.
03, out at 1.
Let's look at that chart.
I literally didn't evenlook at this chart.
This was another volatilechart, very choppy.
But, CTrenary made what? $.
35 a share on 500 shares, $150.
And this was at 9:41 a.
A lot of these plays areright near the market open.
Here's Palkesh making nearly 20% on XSPA.
This is the little companythat gives head massages in airports, but sincenot many people are flying and not many people need head massages, they're converting theirlittle spas in airports to coronavirus testing.
Which is pretty cool.
Jeff, Jsgoff also made like 30% on PDSB.
“Damn that felt good, a planreally works, stick to it.
” Yeah, surprise! (laughs) How amazing is what happenswhen you have a plan? Zotts made a quick $90 on PDSB.
SIKA20 went in on THMO, in in the sevens, out in the eights, alreadyup to $340 this morning.
So, I just want you to get an idea of what people are doing.
And I didn't even trade these.
Some people are like, “Howdid they know to trade them?” That's the beauty ofbeing self-sufficient.
And I actually tweeted this.
I would encourage you tolook through my Twitter, follow me on Twitter.
And here are three tweets.
I said, “It's crazy to seeso many sad unemployed people “all of a sudden, Ireally wish they'd spend “their quarantine studyingas the internet has “so many educational tools these days.
“There's no reasonwhatsoever to be so dependent “on a job or anyone else forthat matter, take control.
“It's a great reminderthat no job is secure “as the world is a crazy place, “so it's best to be as knowledgeable “and skilled as possible.
“For the first time inhistory you can achieve that “from your own home even while in lockdown “so you have no excuse whatsoever.
“Screw building anyoneelse's dreams but yours, “don't beg the government orany company to support you.
“Learn skills so you can support yourself, “your family and anyone else too, “as there's so much moneyin becoming an expert “in whatever subject you love the most, “it's fun and rewarding.
” So, when I look at charts like this, sometimes people getheadaches, they're like, “I don't know what all thisred and green stuff means.
” But for me, this is thesubject that I love the most.
Volatile stocks, whether it's.
I missed MOSY, but whenit goes from one to four very quickly, and actuallythis was a good short from the fours to the fives, but again be very careful about shorting.
It's recognizing opportunities.
CHCI yesterday was a big spiker.
I know enough about the subject, because I've studied itfor 20 plus years now, and I've been teaching for 10 plus years, I know enough not to be long overnight into this action, but whenit doesn't morning panic, when it doesn't go down, guess what? It has a chance.
And even now, I mean, Isold it in the low threes, so I had a pretty good sale, but even now, I would stillbe up on my buy in the 270s.
Because, this stockfrankly was a great spiker, an earnings winner on day one.
And then it came down, but it's holding up.
And so it probably is gonnahave another spike attempt.
I don't know if it's gonna succeed or not.
I'm more interested in the initial spikes.
And then KBLB, my second trade today, they have a conference call later today talking about theirpotentially breakthrough spider silk technology.
This one was a former runner, back here.
I actually went big hereon the first green day, but it didn't break outtill like day eight, so I didn't make much, even though I was there for the initial news of theirbreakthrough technology.
And they have a big company, I think it was PolarTech that's backing them, or partnering with them.
But I played it severaltimes along the run-up, it went all the way up.
It actually double topped.
I actually went for thebreakout right here.
So, I want you also to note that I'm not always gonna be right, okay? Even though, yeah, I've beentrading for 20 plus years and teaching for 10 plus years, this is not an exact science.
So you cannot just gotoo big on any one play and expect that you know everything.
It does get easier over time, the more that you trade, the more times that you see a stock, but also you have to learnlessons from your successes and your mistakes.
Every trade should teach you something.
And even though I was there onthe first green day (laughs) I remember this, thinkingwow, this news with, I wanna say Polar Tech, don't quote me but I think it's Polar Tech.
But it was with amulti-billion dollar company, an apparel company saying, “Wow, we're gonna use this spider silk.
” So science fiction turned into reality.
And I was there on the first green day.
This is one of my favorite patterns.
It was a big percent gainer, with big news, big volume.
And on day two, I mean, I still made like $3, 000 'cause I had a good entry and exit, but frankly disappointed.
And it didn't do muchfor literally eight days.
It was on day eight or ninewhen it really broke out.
So sometimes the newsdoesn't spike right away.
And some people are like, “What? “The news is so good, whyisn't this stock spiking?” That's because you think that this is a 100% logical, exact science.
It's not, okay? Maybe this run-up wascaused by some hedge fund, and the junior analysts at the hedge fund took three or four days to see the news and do the reports and thencome to the conclusion and say, “Hey, yeah, this spider silktechnology might be something.
” And that whole process took them a week.
And then the hedge fund bought big.
You don't know.
But again, when people saythat it's totally random, I disagree with that too, because they did have a press release, they did have a deal with this big apparel maker.
It's not totally randomthat this stock went from $.
07 to $.
They had the catalyst, the only question was, when were people going to recognize it? And in this case, it was day eight.
So I learned a lot.
I still made a few grand.
But I learned that this waskind of an annoying stock.
Then, when I was goingfor the breakout here, I mean, again I was riding it up.
You can go back and lookthrough all my trades, I made a few hundred, I made a few thousand.
But I never really trusted it, because it just didn't reward me with my typical pattern, sowhen a stock doesn't reward me, I say, “Okay, I'm still gonna trade it “because it basically fits my patterns, “but it's not an exact science, “so I'm not gonna get too aggressive.
” So I was buying it on the way up, and even dip buying it into this crash.
But again, even its crashdidn't bounce properly.
Normally you get a big crash on one day and it bounces.
I mean, this was the best bounce after like four or five days.
So this one moved slower.
Then I was like, “Okay, I'll still give it a chance “on this potential breakout.
” But when it failed, I got out immediately, because the stock had been training me from failing on the first green day to failing on the bounce.
So of course, if it's gonnafail on the first green day and fail on the perfect bounce, it'll probably fail ona breakout attempt too.
But I was still trying, okay? And I still can exit.
That's the beautiful thing.
Because everyone in thisniche is so unprepared and frankly just slow, even if the breakout fails we have plenty of time to get out.
That's the beautiful thing here.
That's why I like penny stocks so much.
And other people are like, “Why do you like this niche?” Because the competition is pathetic.
And the reason why I'm telling you this is because if you study, like I said in those tweets, if you take advantage of this quarantine, you can get an edge overall of these other people in this niche.
If you study 4X, if you study options, if you study big capstock trading like Amazon, you have no edge.
Because there's too many people in it.
They're very welltrained, very well funded.
A lot of them are experienced.
You're competing withthe best of the best.
Why do you want that? That's like playingbasketball and being like, “Hey, I wanna win a game, let me try to compete “against Michael Jordan.
” And why? For your ego? You wanna put yourselfup against the best? I'll break you the news right now.
If you go against thebest traders in the world, you will lose.
Trading is so counterintuitive, and the most money that you could make, where some traders arepulling in billions of dollars in like a few days or a few weeks.
There's such upside potentialif you become the best.
999999999% of youare not gonna be the best.
I'm not gonna be the best.
So we have to realize that, and take the money where we can.
And making a few hundred, making a few thousand dollars might be laughable on Wall Street, but for us it's good.
So I made a few thousandhere, I made a few hundred or a few thousand on the way up.
Made a few hundred or a few thousand, I think I might have lost onone or two on these dip buys where I was just surprised.
I remember specificallymaking money on this failed breakout, but not being surprised because it had failedme so many times before.
And now, the reason whyI'm telling you all this from months ago is becauseit directly influences my trade today, okay? They are having a pressconference after the close today.
And so yeah, I probably shouldhave been long overnight, but it wasn't really acting that well.
And also, OTC's first greendays and OTC breakouts lately have been failing.
And so, the reason whyI tell you the story of all the past is because, look at what's been going on here.
The breakout level was here at 28, okay? And yesterday, technically it broke out.
But remember, because I know this stock, because I've traded it dozens of times, because I'm well trainedin my small little pond, and because I know that, noone else is thinking this way.
Everyone is just like, “Oh, press conference at 4:30, “let me buy.
” They're not thinkingabout the past failures, they're not thinking that this stock has always been problematicwith technology analysis.
So I did not go long overnight.
And yeah, I guess therewould've been some money if I was long overnightand sold right at the open, if I was long right hereat let's say 29 or 30, I could've probably ekedout a profit here at 33.
But, it panicked so nicely, I prefer dip buying morning panics.
And a lot of peopledidn't understand that.
And if you look through social media, a lot of people were confused.
They were like, “Why isthis stock panicking? “They have a press conference later today, “are people crazy?” No.
You're just unprepared.
And that's the differencebetween a prepared trader and an unprepared trader, okay? This is the same thing with GRYO last week where I didn't wanna take it overnight.
Some people were like, “Why? “It's the first green day.
” And then it failed and itdropped 30% the next day.
And they said, “How did you know?” You never know 100%, butfirst green day OTC plays have been failing overnight, and the best opportunityhas been to take advantage of those people who are unprepared, who are holding overnightand they get disappointed, and then when the stockfails, you get a panic.
And even though this one barely bounced, it was still an opportunityto buy into this bounce.
And again, the breakout was at 28.
So 28 should be roughly support.
So you have a drop frombasically 33.
5 to 28.
Normally, I prefer bigger panics.
But the breakout, themultiday breakout was at 28.
Let me see if I can show it in this chart.
Oh, I guess it was more than 20 days ago.
I want you to see mythought process, okay? There's very specific reasons why I buy.
But the high here was on March 5th, okay? So a little over a month ago.
So 28 is a key level.
So when I am dip buying this, and mind you, this is allfor a few hundred dollars.
It's pretty funny when people are like, “Why do you do all this workfor a few hundred dollars?” Well, it's a few hundred dollars this time and it's a few thousand dollars sometimes.
And it adds up to millions over time.
But this is my trade.
And I entered right at support, and I got out on the bounce at 31.
And again, I'm sorry it said 33.
1, the three key got stuck.
But, whether I'm sellingit at 28, 29, or 30, I mean, even now it's still at 29, it's using 28 as support.
But whether I'm sellingit at 33 into the gap up and I get out really quickly, or I think this was abetter risk reward trade, especially because I like morning panics, I have 800 video lessonson morning panics, and I sell into the bounce, it's all due to preparation.
And that is what I want for you.
So when some people say, “Tim, why do you haveso many video lessons?” It's to help prepare you, okay? People who are trading KBLB, 99.
9% of people are not thinking about how it failed the double top last time.
How many months ago was this? They probably don't even know.
They don't study the past.
The double top was here, back in May of 2019 and July of 2019.
Perfect double top.
So, this time, yeah wehad a breakout yesterday, but it wasn't very convincing.
And then today's failure, it's probably gonna drop even after the conference call.
They're probably gonna say some dumb shit and they'll probably disappoint people.
That's just (laughs) how penny stocks are.
But you can still take advantage of it with a few cents a shareand a few thousand shares and make a few hundred bucks.
So, that's today's lesson.
Leave a comment underneath this video, let me know what you think.
If you think I'm over-analyzing, if you think I'm over-prepared, you're probably right.
But, that's how I trade andthat's why I have better odds on every single trade.
So going back to my Twitter, this is probably the single best tweet, “Screw building anyoneelse's dreams but yours, “don't beg any government orany company to support you, “learn skills so you can support yourself, “your family, and anyone else too.
” And that's why I'm doing here, and hopefully you realize that.
Cheers, I'll see you guys in the chatroom.