In DVD 3 of the Tim Sykes PennyStocking trading course, he again goes into details about who he is and how he came to be know as the “Barmitzvah Kid.” He re-iterates the fact that he took his $12,415 Barmitzvah money and turned it into 1.5 million dollars in like 5 years.
Timothy then goes into some detail about some rules he has learned the hard way, and that viewers of DVD 3 of PennyStocking can benefit from these rules which are a result of his mistakes.
- companies don’t matter, only charts matter
- trade the momentum
- only trade 1 or 2 stocks at a time
- small profits of $100-$300 from many many trades add up to big profit.
Tim Sykes then talks about, what is the reason he likes to trade pennystocks. Why of all trading choose penny stocks.
Here are the reasons he outlines:
Positive:
- volatile, Syke’s says volatility is good
- easy to get in and get out
- no large players
- gross manipulation – news, forums and hype can easily move stock not like blue chips
Negative:
- short selling penny stocks are not easy
After the reasoning of penny stocks Mr. Sykes then outlines some more rules for trading penny stocks like don’t invest too much in long shots, and don’t hold penny stocks for too long, see a profit take the profit.
Continuing with his fun, weird personal flare Timothy Sykes finishes of the last third of the duration of DVD 3 with tutorials on some more chart patterns. The chart patterns he teaches are the following:
- Mania -> This is when a stock takes off and keeps going
- Blow Off Top -> This is when a stock goes up, then fizzes away, good for shorting
- Short & Sweet -> Another short example
- Short & Scared -> Stock price collapses and then zig zags unpredictably
Those chart type names are not from any technical analysis textbook as you can tell. I’ve read quite a bit of trading books and have never heard reference to those type of names. However, they are his own take on charts and in the end he describes how he traded those stocks based on the example charts. I guess all that matters is that you learn where to get in and out, based on his chart pattern examples.
In conclusion DVD 3, was quite interesting as Tim Syke’s goes into a little for detail about how he shorts penny stocks and as always he is quite entertaining to watch.
by Das Brain
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