One of the things I appreciate about Profit.ly is the transparency when it comes to training. If you follow Tim Sykes at all, you know how loud mouthed and boisterous he can be. Yet, it takes a lot of humility to be transparent when you’re a guru. Allowing everyone to see the trades that don’t go so well can be quite humbling.
This was one of the weeks, as a follower of Tim’s, that you see his errors front and center. It is clearly visible that some of his trades didn’t work out well. Though he still finished the week up $3800, it wasn’t without a lot of loss along the way.
Highlight #1 – Tim’s $13k Loss
Tim took a huge loss when he shorted VEND on Monday. In the amount of $13,685. That’s substantial for anybody, even the gurus.
Tough losses like this can make trading very difficult. Every trader has that talk in their head asking, “Why the heck am I even doing this?!” Or “I can’t take this anymore!” Kudos to Tim for pressing on and not allowing this to get to him. I think Tim’s seen his fair share of losses over the years, that he knows how to rebound from this.
As a follower of Tim’s, you appreciate that he allows you to see this loss and even talks about it here. You know that he’s real when he let’s you see losses like this one.
Highlight #2 – Tim’s Stealth Move to Recover his $13k Loss
The challenge for Tim when he sends out one of his alerts, is that penny stock promoters are on to him. Some penny stock promoters have actually signed up for his alerts, so when he sends out an alert against them, they will counter his alert so he takes a loss. Monday’s $13k loss on VEND is a prime example of this, where he got squeezed when shorting this stock.
When this happens, Tim will make trades that he doesn’t alert his followers to until after the swing has happened. He refers to it as a stealth trade. He did this on Thursday with VEND. The exact same stock he lost $13k on, he shorted again on Thursday. This time he didn’t send out an alert until after he exited the trade. By going stealth-mode, he was able to keep the penny stock promoters from squeezing him, and recoup the money he lost earlier in the week.
As a follower of Tim’s, this is actually a frustrating move. He does it to make up for his losses, but as a paying subscriber, you expect to be alerted to every trade so you can take advantage of the move as well.
You can see his video where he talks about this here.
Highlight #3 – Tim Breaks Down Level 2
I can’t tell you how important enough it is to understand Level 2. This week Tim sent out a short blurp with a great introduction to the concept. He gives the basics of Level 2, which should be helpful for any new beginner. To learn more, and see him trade Level 2, you have to watch his video on it.
For those of you who don’t know, Level 2 shows you real-time info on current buy and sell orders for a stock. You can see what orders are still waiting to be filled, and the size of those orders. This detailed info will allow the day-trader to better time his buy and sell orders. You can see how much of a move a stock has of potentially making and place your order accordingly.
There was a lot of good and ugly that came out of Tim’s trades this week. The ugly came in the form of a huge loss for Tim. But, good in that we sees how he handles his mistakes, and adjusts to them.