DVD #5: Tim Tactics Disc 1

May 13, 2015

Tim Tactics

Disc 1

• Promoters try to play off of your greed
• there are thousands of penny stocks and only a handful that have ever made it
• You have to understand how pennystocks are hyped, promoted and manipulated
• Tim is out to find these promoted penny stocks
• People in the company are putting money into PR rather than into something that will make the company grow 
• stocks under $5 are about exposure and hype
• PennyStock promoters want your email to promote the stocks they get paid to do
• you can play these both ways but you don't want to be in the center
• Tim prefers to wait until he is able to short them
• SPNG
• a stock being promoted by 8 newsletters
• (SPONGETECH)
• has an order from Costco but its going up from promoters
• its still too small 
• up to $0.10 from $0.04
• it had a breakout 
• you can use the promotions to go on the buy side if you are quick
• Tim looks at every time frame to see what is going on in an investors mind ***
• sometimes you can't wait for a chart pattern to be perfect because there won't be shares to short
• Doesn't really like to short stocks heading for FDA approval
• on this particular stock it is a very negative one which is why Tim is taking a chance
• Just because a company is crap, does not mean you short it any price
• This is because shit companies can move up on promotions and jump even higher when the shorts get squeezed out
• When a price gets stopped at huge support, shorts then start to get out (especially on a Friday), the price can squeeze up
• Tim's experience is buying dip on promotions is not worth it just because of the one you get crushed on wiping out all the gains of other successful ones for you
• certain sectors get really hot and you need to respect that
• at this time of the webinar- biotechs are hot and they have enormous gains and the gains are holding up
• all you can do is rely on price action
• supports is wherever you see consolidation and then a spike- the consolidation is support ****
• what can make a biotech stock hold gains is one that has a drug people are really excited for
• The key is finding stocks with temporary catalysts (this is for pumps)
• ISCO
• a perfect pump and dump that got picked up by the media where Tim made a lot of money
• he made it on the upside but didn't know how to shortsell then
• the product never matters it is just how it is promoted
• don't short on the first day, because you dont risk the huge spike that way

 

 

DVD #5: Tim Tactics Disc 2

May 14, 2015

Tim Tactics

Disc 2

• To trade the stocks on your watchlist, you have to narrow that list down
• there are not ideal opportunities every day
• more than 50% of stocks each year drop
• stock picking and investing is not what Tim does
• Tim does not trade illiquid stocks because of opportunity cost
• Tim wants to piggyback the hype and manipulation
• Looking for spikes that occurred from a temporary catalyst
• Special occasions like hedgefunds getting caught having to margin call by selling their position in a pennystock driving the price one way or the other artificially
• Tim likes to be liquid as much as possible
• NVGN
• price action spiked huge
• found out that Australian Forbes did an article on it
• this is a perfect example of a temporary catalyst
• when this stock tanked, then bounced a bit and Tim saw a wall of sellers on the level II, he shorted it and made close to $4,000
• There are fees to holding shorts overnight
• Tim's fees have amounted to 10$ after a few months
• you can short stocks anywhere
• the reason that "investopedia" would say shorting penny stocks is dangerous is because a $0.10 stock can spike to $1 fairly quickly
• when you short a stock you can put in an automatic buy to cover order to cover
• Uptick Rule
• when you have to short only after an uptick
• can get around it you can buy 100 shares and then short it 10,000 shares
• because Tim is looking for the $0.50 /share he is more concerned about getting in than saving a penny or two
• Best Times To Buy And Sell
• Morning and Late Afternoon
• Morning is volatile
• Afternoon is more calm
• Tim prefers afternoon breakouts
• much slower and easier to predict
• Worst Times to Buy A Strong Stock
• between 10:30 am -12 pm
• you open yourself up to late afternoon fades
• Tim looks at the market close as like a safety
• when a stock is up so much, people talk about it because they can get others excited about it as well
• stocks can only go up so much, you have to anticipate when the trend is over
• when it breaks through get less greedy
• Tim's success in buying comes from getting in when shorts are getting squeezed
• The trick is to guess where stop loss limits are - key psychological numbers ****
• short sellers don't like to hold over the weekend
• sometimes its worth it to take a small position short and risk some pain if you have done the proper research
• in scenarios such as this, he will risk the pain and then average up with a bigger sized position
• he doesn't like trading stocks with super liquidity like 30 million in volume
• these stocks can be manipulated by hedgefunds
• there is software to hide your true position, which is where Tim Gritanni talks about taking up size in the Level II
• if you are not a scared shortseller, then you are not an experienced shortseller
• painting the tape
• trying to put in an order to make the bid meet the ask on a big spread
• WallStreet- Everyone is in it for themselves!
• how to get quicker executions on the otc market
• just match your bid with the price and size on the specific route and it will get executed very rapidly (mainly ARCA route)

 

DVD #5: Tim Tactics Disc 3

Disc 3

• How can you tell the difference between a short squeeze and a runup?
• You can never truly be sure, but you can have an idea by how quickly the stock goes up
• runups are more gradual
• Very risky to short stocks on a Friday because shorts don't want to be short on a weekend
• Experienced short sellers play it extra conservatively because of this
• Experienced traders know what the catalysts are
• Because promoters and experienced traders know that shorts are scared on Fridays they try to promote the stocks getting that short squeeze to make profits
• Certain stocks are connected and when you can see these connections they can become catalysts of each other
• Message Boards
• thelion.com, buysellshort.com, yahoo Finance!
• by keeping track of all your trades you start trading better because you learn from all your lessons
• do not sign up for breaking news
• Tim never uses stop orders
• Market makers can see the stop orders and they can take the price out for fun

 

43 Trading Tactics

• 1.) What to do when you hear a penny stock tip
• Listen to the entire story without cracking a smile
• get as many specifics as you can & write them all down
• Don't mention anything about how penny stock tips works, how corrupt the penny stock world is, PennyStocking, Timothy Sykes, short selling .... just act impressed/excited/thankful and say "Thanks for the tip, I'll check it out"
• No matter how you hear it you don't want to wreck your relationship with the messenger by telling them the ugly truth
• You must value that relationship because this person is somehow tapped into the whole penny stock manipulation ring & whether you hear the story early or late, you must protect your source to get future tips!
• Don't automatically assume you're going to short sell the tip, many pump & dumps offer great upside before their inevitable dumps
• When you have all the info and can resarch it on the internet, then determine whether its early or late in the pump & dump cycle
• Then if you understand PennyStocking, you know what to do
• But the the pint of this story is to encourage you to get as many tips as possible so you can plug them in and see if they're worthwhile pump & dumps... tips are great, just don't believe a single word of them & be ready to trade against the naivety
• 2.) What are the differences between brokers?
• I currently use & recommend ThinkOrSwim and Interactive Brokers
• Sogotrade & Speedtrader I've also heard good things about, especially for finding shares to short of penny stocks
• Scottrade, Zecco, TradeKing & E*trade are fine if you want to focus on buying, but they are terrible for short selling penny stocks
• Ideally, I'd like to have accounts with TOS, IB, Sogo, Speed & even the bigger names like Goldman Sachs & Bank of America
• Goldman Sachs & Bank of America require much greater minimums to open accounts, but their short list, that is their list of stocks available to short, can be accessed by signing up through an introducing broker, none of which I can recommend because I haven't been in the hedge fund game in years
• Don't listen to Scottrade when they say you cannot short stocks under $5, just because they can't, doesn't mean other firms are not more than happy to let you do this
• TD Ameritrade acquired ThinkOrSwim but the merger will help PennyStocks
• ThinkorSwim now does charge fees on hard-to-borrow shorts, I've paid $8 over 3 months 
• 3.) How to save time on stock research
• Ignore all the daily noise, only trade stocks up 100%+ in 1-2 days due to a pump & dump or earnings
• Obviously there are other patterns, but if you truly want to focus on the best patterns, see GWSC
• Never research a stock due to its "story", focus on chart first, story second
• Ignore stocks trading less than 50,000 shares a day
• Ignore stocks over $10/share.. you can make $ in regular stocks too, trading manipulated/hyped up penny stocks is just easier!
• Focus on low priced NASDAQ names, especially NASDAQ SmallCap & OTCBB, not AMEX, NYSE or Pinnk Sheet stocks, this is the best arena for runups that quickly reverse
• Work off multiple computer screens/computers, it increases your efficiency exponentially!
• Get in the habit of allocating a certain amount of time each night to research but keep it flexible based on # of stocks in play
• Test yourself and improve research speed by going through your steps with random stocks, practice does make perfect!
• 4.) What financial media sources should you listen to/watch/read?
• Why listen to/watch/read any of them, after all, their track records all suck!
• Remember, most financial people are total losers, personally & business wise, feel free to ignore them all
• Except when they do feature penny stocks, odds are they're getting the story wrong because they don't know how to research (they focus on PRs & Earnings, not SEC filings)
• I know this may sound a bit crazy/egotistical, but all I can do is speak from experience I know firsthand how useless the financial media is in terms of increasing trading profits
• Understand though penny stocks will use macro issues to pump their stocks (example: hardcopy mail)
• 5.) How to profit from PennyStocking in Bull Markets
• The odds favor buying breakouts as shorts are very scared
• there will be tons of potential plays, don't force any trades, but in strong bull markets, the breakouts just don't stop so you'd be a fool not to profit from many of them
• You'll inevitably miss some breakouts, sometimes there are too many stocks breaking out simultaneously, but don't look back and regret, focus on upcoming opportunities 
• Keep track of all the breakouts because depending on the strength of the overall market, some/many of them will inevitably become great shorts once they get too extended
• If i miss buying a breakout, I don't chase because I am biased since I want a greater profit to make up for the missed opportunity
• Do consider short selling, but make sure you're extra-extra careful as bull markets are the ruin of many short sellers
• I was the #1 ranked short selling hedge fund manager during 2003-2006 in a bull market by playing it very conservatively and only partaking in short trades 3-5 times a month
• that's why I encourage you to practice buying breakouts so you won't have the same handicap as I do
• shift your work/study schedule around to be able to buy into the market close & sell for probable gap ups the next day
• 6.) How to profit from PennyStocking in Bear Markets
• There are far fewer breakouts/exponential runups so it's like the winter where all the penny stock traders are hungry for meat, actually pretty desperate
• Shorting breakdowns becomes much easier because there seems to be an entire wall of sellers that pound any strong stock
• most breakouts are either temporary or they prove themselves to be fakeouts ... not worth buying for the most part
• The good news is that when a breakout does prove to be real, EVERYONE jumps on it, so they are quick, but massive, making these few plays truly worth buying
• Stock spikes rarely last more than 2-3 days so just about every 2-day winner up more than 50% becomes a short selling prey
• The entire underground industry of stock promotion & pure pumping & dumping is pretty dead, so if you see a starving promoter on the street, give him some soup so he can last through the cold winter & be strong again for pump season!
• The availability of shares to short also diminishes because everyone's fighting for the same few shares
• Seriously, it's like Siberia & it's a battle to make it through the cold winter ... the only winners are thos