Thread: Stocks
View Single Post
Old 07-10-2014, 01:54 PM   #13
InfiniteBaskets
Decent college freshman
 
InfiniteBaskets's Avatar
 
Join Date: Jun 2007
Posts: 2,778
Default Re: Stocks

Quote:
Originally Posted by It's A VC3!!!
Follow and search Timothy Sykes. Sign up for his $100 a month silver plan and he will text you every time he is about to buy a penny stock and he also tells you when he is going to sell. That plan also provides hundreds of video lessons and webinars. I'm more into foreign currency trading but I know one person making low six figures with his plan. The person learned enough from Timothy Sykes to start trading on his own now but Tim's platform was literally the best thing for a new beginner because he literally spoonfed you everything before he was about to do it.

I can't tell if you're serious but if you are indeed still living at home with your parents and sister then you need to stop listening to any get rich quick schemes, which include Sykes.

Sykes' main method is nothing ground-breaking. Look up stocks have been rapidly rising in the past few days, go search their 10Ks and look for keywords that scream "PUMP" and look to short the stock. There's nothing wrong with that method inherently, but there's a ton of frictional costs he doesn't mention at all.

In order to short the type of stocks that can actually be pumped you're looking at micro cap stocks which are usually not traded on large exchanges. So you've first got to activate margin trading, which can cost you something at your broker. Then because these stocks are so small, they aren't extremely liquid or high in volume. That's why you'll see Sykes only shorting 3k worth of stocks at a time on his youtube videos, because he has to cover his short. With little volume = little supply and you'll end up buying on what's called a dead-cat bounce (all the shorters covering their initial shorts).

Lastly, there's only a few exchanges that will even offer you the ability to short microstocks, and most of those will charge you much more per transaction than your typical $7 per trade on Scott-trade.

If you want to get into high frequency trading or even swing trading you will most likely be coming up in the red compared to buying a basic index fund. For every Sykes student that makes 100k, there's 10 that lose 1 million.

OP, if you actually want to get into investing in stocks, first invest in a personal finance book at the minimum. You can also sign up for free personal investing lessons on cousera.

Going on youtube and looking up moving average crossover methods or Sykes' get rich methods are a sure shot way of getting yourself into trouble.
InfiniteBaskets is offline   Reply With Quote