Professional Lesson #1 by Timothy Sykes (Penny Stocking Silver & Profit.ly):
[learn_more caption=”Transcript for Hearing Impaired”]
This is the ideal trade that I’m going to talk about. I want you guys to understand every single aspect of this trade because from start to finish it is perfect. This is slide number 30. This is a picture of the company’s headquarters. You can see there’s a fitness center in there. There’s a few for lease signs. There’s a chiropractor, insurance, financial services. 2 financial services. Yeah, and there’s a doctor. Oh no, he’s a chiropractor. Then what is that? Open Sunday. Oh, the chiropractor is open on Sunday.
This is a very typical strip mall anywhere in America. It doesn’t even matter. You see that little A? That is where this company is based. In that minivan. This is the SEC filing. I didn’t even footnote it. I don’t need that bull shit. It exists. I put it out in alert. On February 29th the company entered into a memorandum of agreement with blah, blah, blah Chinese company and Michael Franklin. For and in consideration of the payment of an initial license fee of $10,000 and for the future payment of royalties, sketchy Chinese company granted an exclusive worldwide license and joint patent rights to Domark International Inc for a solar charging case for iPad, including iPad 3. There is no prior business relationship with sketchy Chinese company or any of it’s officers or directors.
I don’t know how to pronounce Xiamen Tayong Neng Gongsi. It sounds like a Thai soup with seafood. What is that called? Tom Yum? Asians in the room, am I right? I took this great picture. All these Asians were gathered together at lunch. I was like “Asian table. Asion table.” It was awesome. But then there was a second Asian table. The joke wasn’t as funny the second time. Anyway, this SEC filing literally was the start of everything that came. They paid $10,000 for this exclusive license and joint patent. When you pay $10,000 for a patent or exclusive license, if there’s anything with such big potential as a solar charging case for an iPad, something just might be a little fishy. Not to mention the Chinese company name. I’m sorry to be racist, but every single Chinese company is sketchy, especially when you have 4 words that I can’t pronounce.
You’ve got to be racist when it comes to that. You’ve got to be. I don’t say be racist in life, or in person, but in trading be racist. I went to China for a month. It is the most fucked up place in the world. I went thinking “Oh, this is such a fast growing community. I can picture all these little Chinese traders. We’re going to freaking grow them like a clone army in Star Wars right?” No. I would never do business in China willingly. I don’t think any of you guys are from there. Maybe your ancestors are, but you know, the people that are actually there, it’s like they’re the first generation with capitalism and democracy so it’s all new for them. I like that the Asian people are smiling. That’s okay, so it’s cool. Or maybe they’re like “I’m going to kill you. Kill you at this party when you’re drunk and make it look like an accident.” It could happen. It could happen. We have a lot of insurance for tonight.
That’s how I’m making money on this conference. Come on. Bring it! Probably shouldn’t say it because we’re recording this. But the point is is that this is how I think. When I see this $10,000 for an iPad solar charging case, which theoretically is worth billions of dollars, something is fishy. Next fishy thing, this is the company news. How did I turn this off? Huh, okay cool. This is all October 17, 2011 is where it starts. They retained an investor relations agency. That investor relations agency, their job, and some of you guys are in investor relations in here. I like the mix. Their job is to basically, “How do you get this company noticed? How do you get eyeballs on them?”
We find out a few months later, new re-organization. New focus on cutting edge consumer electronics. The next day, cinches deal for hottest new iPad accessory. Mind you they paid $10,000. The hottest new iPad accessory for $10,000 may be a little excessive. Then 2 days later, this Friday marks an important product milestone for both Apple and DOMK. It’s good. Now we start mentioning the Apple ticker symbol in the press release. It gets better. They logged soaring demand for Apple iPad as a new product engineering is completed. This is 4 days later. They’re really ramping. Right? 1 day later they receive very high number of registrations for hot new Apple iPad accessory. 1 more day later. Hot new solar pad Apple accessory is a big hit at the American West show. 2 more days later. Reports of fragile iPad design could be helped by hot new accessory.
Every day they’re building. They’re adding to this story for which they paid $10,000. They’re paying their investor relations probably more than they paid for the patent to this product. But there’s more. But wait, there’s more. March 27, this is 4 more days. Strong demand. March 28th, could possible benefit the modern soldier’s combat capability. Let’s throw that in there. Homeland security right? You know, those damn soldiers are dropping their iPads everywhere. They’re getting all dusty with that Afghanistan dust. Oh, so annoying. We say “Oh, it’s also Amazon Kindle worthy too”, right? Then, expanding to create a website for e-commerce revenues. AKA they can’t find anybody else to sell it. This is all March 29th, April 2nd, April 3rd.
A week later, April 9th, this means you never have to charge your iPhone again, never. It’s always sunny. This could mean, wait, this could mean the end of misplacing your iPhone too, because it’s going to have some kinds of cool stuff in it that tracks it. Right? You’ll never have to charge it. It helps soldiers. I mean, it’s getting kind of funny. They focus on manufacturing after strong response to the e-commerce platform. Countdown begins. This is all within a month mind you. Each one of these press releases cost about $500, so I guarantee you they spend more on the press releases than on the product. Oh, there’s more. Wait I went the wrong way, but there is more.
Here we go on April 24th. Retailers begin lining up. Sales exceeding management expectations. Pre-orders outstripping production. Could signal even greater success, new iPad sales. US consumers in less than 1 month. Favorable Chinese production goals. 95% of tablets are iPad. iPad accessories on track in less than 18 days. Prepared for shipment by May 25th. All of this is happening. It sounds really good. Don’t mind my negativity. Right? I’m a negative person. Maybe this is the next big thing. Sales are exceeding. They’re going to help the soldiers. You’re never going to misplace your iPhone.
This is what happens. All of these press releases the stock did nothing, but all of a sudden sometimes traders pick up the news. It goes on message boards, in chat rooms, on briefing.com. It spiked the stock and it was actually a good buy because it’s a penny stock linked with Apple. Who here traded liquid metal? LQMT. You remember that. That thing surged. 2 years and 3 months later we still don’t know what their contract is. They have a contract with Apple for liquid metal. Maybe they’re going to replace the whole thing. Who knows. Liquid metal also surged.
Being tied to Apple is golden for a penny stock. Whether it’s a sketchy Chinese company, whether it’s an actual contract, this is a catalyst that I look for. There’s thousands of penny stocks out there. Most of them are shit. Just like there’s millions of penny stock traders out there that are shit. Most of the penny stocks that are shit, they have no prayer of succeeding. That’s fine. You can say that pretty much about most companies that are traded. Stock market, well that’s my big conspiracy theory. The stock market features the worst companies. The only reason to be on a public stock exchange is to raise money. Why do you need to raise money? Because you need money. You need money from other people, you can’t raise it yourself. That’s not a sign of strength.
Most penny stock traders are shit because they don’t put any time or effort into it. They just invest as if this was the lotto. They say “I’m going to invest in 10 stocks. Maybe 1 will hit and make me rich.” They don’t do any statistical analysis and say “Oh, wait a minute. This thought process is wrong.” But DOMK, whether or not their product is shit, had the press releases. They had Apple, and the stock responded. The stock went from 1 to 4. But it also crashed. This is the kind of chart that I look for.
I talk about this in my penny stock, in part, DVD. Morning panics. This is the morning panic from 4.2 down to 2.4 all before 10 a.m. Loses nearly half its value before bouncing. It bounces from 2.4 to 3.4. you can make 50%. This is the volatility. This is the kind of perfect play that I love. I was shorting it. I didn’t buy it but I was shorting it. An ideal trader would both short it and buy it. I’m not an ideal trader. I think I’m an ideal teacher, but I know that it’s very tough for me to go back and forth. I’m glad that several of you have learned to trade back and forth. Mark Crook I know you go back and forth too. It’s good.
Then it also faded pretty much the rest of the day. Here’s the 10 day chart of DOMK where it goes from 1, to 4.4, back down to 1, all in 10 days. Or 170. This is volatility. This is something where you should ditch your friends. This is where you say “You know what? Let me focus on this. This is the perfect play.” Because it’s up due to those press releases. Because if you do in depth research and you look at its headquarters, and you look at [Tien Zomyung Tom Yum Gung [00:11:01] soup, right? It’s only a $10,000 product. Yet their market cap reached over $100 million. Some inequality there.
We made $103,000 over 177 trades on Profit.ly . These are just a few. I just want to make a quick and easy screen shot. You can type in profitly/ticker/domk if you want to look at all of them. You can see my trade. I made about 6,000. Sure traders has shares to short. It’s hyped up solar iPad product. They only licensed for 10,000. Now the market cap got up to 200 million. My bad. They paid $10,000 for that license. Yet the company during its 10 day peak due to those press releases, due to traders, due to a lot of dumb penny stockers getting excited, pushed it up to $200 million. Here’s the long term chart. You can see this was the big run up. This was literally into April and May, that 1 month period when everyone thought they were great. They never actually did ship a lot of them. The product actually didn’t really work. That’s why the stock is at .50 cents.
I want to show you a video. Fortunately, because I have this trading challenge where people can see me live trade via webinar. I like to teach people in person, but I also have these webinars where you can see exactly what I’m doing with the screen. I was filming this one day. I have hundreds of webinars, but this one webinar captured it live. It is outstanding. I’m going to put this on YouTube. Literally we just got this edited last night. It’s an hour and a half webinar. We edited it down to 20 minutes. You’ll be able to see, tick for tick, how this thing collapsed. You’ll see this. The first 30 minutes, roughly, and how quick it was, and how amazing it was. You’ll hear my comentary and you’ll see that while I did not trade this perfectly, this is the stock, this is the opportunity. I was short 36,000 shares the night before which I covered because I was getting squeezed.
This is the opportunity where you can make 70 grand in a day or 2. This is the kind of trade where you can make millions of dollars over time. This trade, next company that promotes themselves with Apple, this is it. This is 1 example and it’s going to happen again and again. It doesn’t matter if they’re talking about Apple, or what’s a hot company now? I don’t even know any hot companies right now. What’s a company that’s hitting new highs every day? Google? If somebody does a search partnership with Google or whatever. I don’t know. There’s always going to be more and more small companies that are saying this. Apple never validated anything. Apple was just like, they just ignored it.
Sometimes the big company will step in and put in a cease and desist and actually deny it. That happened with an oil company which claimed that they were doing a deal with a bigger oil company. The bigger oil company was like “No. We never heard of these fuckers.” That happens, but this will happen again, and again. If you can wait for these and you can learn these patterns, this is why I want to teach you, this is why I want you to focus on this stuff. Not trading every day. Trading every day you might make a little bit, but it’s not going to make you a millionaire. What’s up?
Speaker 2: [inaudible 00:14:42].
Speaker 1: The deal with UPS?
Speaker 2: Yeah.
Speaker 1: That’s BLIN. That’s actually when I’m long. They actually do have a deal with UPS. There’s a big difference between a press release where someone from the big company is quoted. With BLIN they started a website with UPS, in partnership, and then there’s also a quote from somebody at UPS saying “We acknowledge this partnership.” Apple never acknowledged any of DOMK’s press releases. Not 1. Let me, Ben can we figure this out?
I can’t even, normally I would do this, but this is going to collapse. You’re going to see a massive collapse on DOMK because the gap has failed. Should have held short overnight because now there’s no way to get in. Good lesson to be more aggressive. I’m trying to get in, but everybody’s trying to get out. Instead of a morning spike like we had yesterday, we’re going to have a morning panic. Nice. I got 2150 at 420. Let’s report that on Profit.ly. Open a position, DOMK. Thanks. I got 3K short of 416. Cool, I’ll take that. 4.6, 417, 3,000. Shorted via Sharetrader into failed gap, probably morning panic coming. Goal is to make .50 cents a share or more. Thanks to Sharetrader for having shares.
I got something. I got 3,000 shares. I hope some of you guys did better. Carla is short from 434, nice. Butch is short 1,000 shares. I’m up. I’m short at 416. We’re getting a perfect morning panic. Now the question is “Will there be support at 360?” Which might happen, but you see there’s such a wall of sellers there’s no reason for me to cover. I’m not worried at all. It’s only down 30% on the day. I wish I had the 30,000 shares again. Then I’d be up 15,000 plus, but I’ll take the $2,000 that I’ll probably make again. Now we’ve cracked this 360 low. I mean, I’m up.
You can’t see this. The time and sale’s 355. Remember, yesterday it surged a dollar. So far today it’s down, but again you have this wall of sellers. You have a few buyers here at 350. This could be the bottom so I’m going to change this to 360. But right now, remember, I’m in at 416. I’m up 1,500 already. Look at these big sales at 250. Someone is taking them out. I missed that, but this is the chart overall. This is a beautiful beautiful morning panic. I’m glad I wrote the post yesterday. 350 could hold, but it’s just not. You see everything is just fading so beautifully.
You see, we keep eating into the 340s. I might make a dollar a share on this. I have no expectations. Just look at the level 2. This is the best webinar by far because this is a classic, classic morning panic, just like the morning spike. I think I’m going to hold all the way down. You see why there’s no reason to cover because it just keeps going down. There’s not 1 uptick. There’s not even a chance of any uptick. This is today. 430 down to 340. You got to put it into perspective. It’s the exact inflection of yesterday’s morning spike. This will bottom at some point. Maybe here. Nope. You see, there’s just more sellers. There’s no reason to cover.
Morning spikes and morning panics. By the way, my 36,000 shares, if I had any balls whatsoever from 415 yesterday. Again, there’s no way to get in today. You have to be early. It’s such a tough lesson where you have to risk it. I should have risked it more overnight, especially given the facts, but I was just scared of a morning spike. You never really want to experience that. We’re dropping, but it’s down 19% on the day. I’m up nearly a dollar a share on this. I’m up .80 cents a share, that you’ve seen, in 10 minutes. Pretty fantastic. Butch shorted at 444, covered at 350. That’s cool. You don’t need to get scared though man. I mean, look at the level 2’s. We’re literally just eating through this.
Especially if you have a big order, if you have 50,000 shares then I understand covering at 350, but I’m not even tempted. I want you guys watching this webinar over, and over, and over again because this is a beautiful, perfect morning panic. There should be some support maybe at 3. I don’t even know, but you see there? We’re just gradually going lower. Thank God for E-trade Pro, Power, whatever the fuck it’s called these days. I mean, look at this. 330. I’m literally up .90 cents now. There’s still no reason to cover. The big money is in getting there a little earlier, like yesterday, at 415 or 450, whatever it is, and then covering into this.
I thought it was going to bounce here at 325, 326. All right. There’s a few bidders at 325, but look at all the sellers at 327. It just keeps going down. Come on. Find a bid. You can’t find any bid whatsoever. Just waiting. Just watching. ORYN is up to 103. All right. It’s finding a bid here at 325. Nope, never mind. Right as I’m about to cover the 325’s go away. I might even get a dollar a share. This will be interesting. Let’s go for a dollar a share. I only have 3,000 shares so I can cover pretty easily. Look at this. This is glorious. It is tanking, but you also have to remember that it could bounce. I still have my finger on the trigger. But 416 down to 360, I mean the way to make $30,000, the way to make Elkwood type money, is again to take a big ass position and just hold and not worry about being down .10, or .20 cents, or .30 cents and then adding. You just need to make sure you have a big enough account, and not take too big of a position right away.
That was my problem. I took too big of a position. There’s no way to get back into that. All right. There’s some bidders here at 320. Nope. Can’t we get to the teens? Now we’re down 25% on the day. This is a lot. What’s going on here? Is it halted? Nope. We still have sellers here. 319. Look at this. There’s still a 25,000 share seller here at 320. Can we get a bidder? Can we get a bidder? Nope. No bidders. This could drop 50%. There’s no way of saying. You can see it just keeps going down, so now I am up, what is my average, 416. I am up exactly a dollar a share right now. Wow. Who would have thought it? I’m up $3,000. Literally $3,000 in 15 minutes. You saw it.
Oh, wait. We have some bidders here at 316. Will they stay? Nope. Look at all the sellers at 317 just eating away from it. I’m going to make more than $3,000. You still have a 24,000, 26,000 share seller. This could go to under 3. Then you have stop losses at 3. This is a beautiful, beautiful panic. I prepared all of you. All of you were prepared with this pattern, with this broker. You all had the opportunity to get in on this exact pattern. Either yesterday or today. This is it. This is what I teach. This is it. This is what makes me rich. This is what’s predictable. It doesn’t happen every day, but when it does it is beautiful.
Ben, cut this off. 15 minutes. This is going on YouTube. We’re going to create our own thing. Look at this. 24,000 share seller at 311. I’m up more than a dollar now. Keep it going. I want to see maybe 3 will act as support. There’s some buyers right here at 3. There’s going to be some support somewhere. Will it be 309? Nope, now it’s printing 305. I think maybe 309 might be the bottom. Nope. It just keeps going. It just keeps eating away at it. 308. Beautiful. All the way from 480 down to 3. I bet investors underground is like “Oh, we’re going to buy this.” Some people are looking to buy the dip. That’s not me. I like being short for this. Look at all these sellers at 307, 308. There’s absolutely no reason to cover. I’m now up $3,300 on literally a $9,000 investment.
It’s not like you need big money on this. All you need is Sharetrader, you need to know the pattern, and you need to be prepared. I did all of this. Remember I was short 36,000 shares at 415 yesterday. All right. Enough lecturing. Let me freaking think about covering. There’s some bidders at 3. I have a feeling it’ll kind of, there’s a few bidders here at 301. Remember my last thing I said “Let’s cover 3,000 DOMK at 330.” Let’s change to 310. Actually let’s cover 2K. Let’s see what happens, how quickly we can get this. No reason to cover it all at once. He says okay. Look at this. I’m short 3,000 shares at 316. Let’s just see how long it takes to cover this 2,000. It’s down 30%. This is near best case scenario now. You have some bidders here at 301 and 3. Maybe it goes down to 290.
At some point it’s going to stop. Let me cancel. There’s no real reason. It’s down to 299. Did we already get it done? What did we get it at? 301, 302, 303? All right. Cool. There’s still sellers. Now you have stop losses at 3? Look at all these sellers. Beautiful. Absolutely beautiful. This was going to be a 2 hour webinar. I’m cutting this off. I’m seriously cutting this off because there’s no reason to discuss anything else. We’ll do a trade overview, but this isn’t going to be 2 hours. I’m going to get to sleep at a normal time and this is perfection. This is what you guys need to focus on. Who’s still short? Say yes or no? Remember I just covered 2,000 shares at 303. Perhaps I should have covered 1,000. At this point it’s just the house’s money.
The stop losses have gone off. 292. It’s all a question of when will the bid find any support. You see we’ve been eating through it. Oh, now we have a lot of sellers. Well, I was going to say there were 3 guys here at 292 that aren’t leaving, but now they just left. This is so beautiful. I’m so glad that we’re doing this webinar. Not one up tick the entire time. We’re down to 285. Howard do you feel guilty for covering? Look at this. Eliminate, I need to show this. My guys. This is awesome. 295, Eliminate is short from 422. Sturdy Trader is short from 444. Fresnick is short from 446. Is 291 the bottom? We still have a 20,000 share seller. They can’t get executed. I’m glad I didn’t cover all 3,000 because this is the single best case scenario possible.
Morning panic. Remember I just have to remind you that I had 36,000 shares short at 415, which would now be a dollar and a half. Oh, we have some bidders here at 276. Is this the bottom? Cover limit, nope. Right as I’m about to cover all the 276’s disappeared. This in only a volume of 700,000 shares so it’s not like this is huge huge volume. It’s just stop losses going off. It’s down 40% on the day. This is fantastic. Are you guys loving this? 271, 270, 267, 265. This is fantastic. This is not random. People are like “Oh, penny stocks are random. [Such 00:30:09] is a scam. You can’t find shares to short.” I’ve heard it all. This disproves all of that bull shit.
This is what we live for. This is what I live for. Waiting for these perfect patterns. Down to 250. The 250’s now, and it just keeps getting there. People who are long are like “Oh my God.” This is why I really need to have some more balls. This is a $60,000 where I’m going to make 6 or 7. That’s why I teach. Look at this. 260. Even my covering 2,000 shares at 303 I’ve wasted nearly a thousand dollars. This is predictable. These are the patterns that are so much better. By the way, the big thing that everyone’s so excited about with ORYN, it’s at a $1.05. It’s up .09 cents a share. Fuck ORYN, okay? DOMK, this is it. We still have all the sellers. There’s still no reason to cover. There should be some support here at 235, or 250. We’re down 41% now.
Yep. They keep printing. When there’s size like this on prints below the price, that’s just people getting out at any price. That’s just desperation. I have to tweet. I love being short DOMK. Warned everyone yesterday. You have no excuse to miss this. 40% plus drop. Thank you Sharetrader for shares! We’re down to the 240’s. I’m not really even that worried anymore because again, we still have the 32,000 shares seller. This is going to be a long YouTube video. I really don’t know what the limit is on YouTube, but this is fantastic. This is what every trade you dream of being when you’re short.
I did the post yesterday. I sent out a big mailer. I thought I was a little too early. Turns out I was dead on. I just didn’t have the guts to really hold. Even now, covering at 303. Yes, sir. He’s like “You’re still short 1,000 shares?” It’s still going down. I might make $2 a share. Remember, all I wanted to make was .50 cents a share. Literally. We’re down to the 2’s. When you have a 1 employee company, no cash, no revenue, the guy behind it has a record with the SEC, or he doesn’t personally but his previous company, it all adds up. The volume is still only like 840,000 shares. $2 million has moved. Or $3 million I guess. Can I make $2 a share? That would be fantastic. I don’t think I’ve ever made $2 a share unless there was an SEC halt.
Uh oh. 232 is holding. You see there was just a bid increase. Cover 1K, 2.35. Oh, no. I’ll get my order ready, but I thought 232 would hold, but you still have sellers. Are the chat rooms loving this? Are you guys loving this? Yeah, exactly. A few people “Too bad for the guys that decided going opposite Tim was a good strategy.” I love DOMK. 229’s. Remember I am still short from 416. It is now 9:55 a.m. I covered some at 303, which in retrospect was bad but I’ve never seen a stock collapse this perfectly. Oh, wait. I see bidders. I see bidders.
Now it’s holding up at 229 so I just put my limit at 240. Cover, cover, cover, cover. Now there’s bidders. 229 is the bottom, guaranteed. Guaranteed bottom right now. Shit. Go up to 250. I just opened freaking Word by accident. Come on. Get it. There’s still a 20,000 share seller at 235 so hopefully I can get my, oh he disappeared. Did we get it? Probably should have paid a few more, a little more attention. Shit. Remember I just have 1,000 shares here. I missed the bottom. 229 was the bottom. Put my limit at 250 now trying to cover. Everyone’s trying to cover. This could bounce to 3 remember. Now it’s not even that bad of a dip to buy. I really just want to cover, lock in my profits.
I don’t know if I’m going to get 250 because everyone is trying to cover right now. I just wait. I get that 40,000 share buyer. I’m not even going to get 250 am I? Come on. See, that’s the 1 bad thing. Bulletin boards do take a lot of time to execute, but, again, what have I given up here? .20 cents, .30 cents a share, so $200? Come on. None? Go to 270. Fuck. This is so annoying. I should have, literally a few seconds makes all the difference in the world. I’m going to miss the bottom by .30 cents, $300. The low was 229 so it was basically $1.80. Look at this. Eliminate 2 covered at 235. I love it when my students do better.
Beautiful. Tim Lenso covered at 230? Look at that. Michael Good, my chat moderator, made $1,300 from yesterday. What are we at? 268, 264? Almost done. Cool. I get 265 so I’ll be out at a average of 280. Nice. I bought 1,000 shares at 267. All right. I’ll take it. Total buy price. I missed the bottom. I covered too soon. I didn’t play it perfectly, but I covered at 291 on average. I think I might have just gotten the top too at 267. No, maybe not. All right. Let me cover this. 291 is what I covered at. Look at that.
Shorted at 416, covered at 291. Missed the bottom by .60 cents a share, but still made, what did I make, $1.25 a share. Very good. Wish I kept my 36,000 shares from yesterday now. Still profitable. Great live webinar right now for Challenge Students. Ha ha ha.
You have to be prepared. I want you joining my challenge. I want you coming to Miami and working with me in person. Talk to my people. This is what this conference is. I have my people here scoping out who wants to work with me? Who’s eligible? Who’s ready? We’re not going to accept everybody. I don’t want to work with all of you. I’m serious. Some of you guys just don’t have what it takes because you don’t want it enough. I want people who freaking want it. I’m pumped up watching that video. I’m pumped up speaking to you right now. That’s how badly I want to create a millionaire.
I can tell some of you guys, you don’t want it bad enough. It’s okay. It’s cool. I mean, it’s not the end of the world. You’ll be fine living your 5 and 6 figure lives forever. There’s nothing wrong with that, but if you want to take it to the next fucking level, I’m getting really pumped right now. Literally it pumps me up because it changes my life. I’ve seen it change a few other people’s lives. I wish it could be all of you. I hope maybe I can inspire you with my little pictures of my fucking cars and my watches. Look at this. This is what I fucking think about this Rolex. I don’t give a shit. It doesn’t even work. It doesn’t even work anyways. It doesn’t tell the right fucking time. What do I need it for? Yeah, go steal it free promo. You need it. You need it. He needs it look. That’s his biggest profit in the past month.
Professional Lesson #2 by Cameron Fous (FOUS4):
[learn_more caption=”Transcript for Hearing Impaired”]
Hi, what’s up guys? Just checking out Newl here, NEWL This is an F3 breakout that we’re looking at into to close. Actually to scalp this thing for about $587, but we are breaking out of F3 here, that’s why I want to do a quick recording. Basically, an F3 is a chart pattern that is breaking out into close that forms a triangle pattern, but happens within the last 2 hours of the session basically what I teach in [inaudible 00:00:38] part 2 DVDs is how to trade F1, F2 and F3 so basically whatever time frame it is, that’s basically when it’s 1, 2 or 3. So three being the last two hours of the session. Typically we don’t trade the middle of the session F2s because a lot of times this is very flat trading but we are having a nice flat breakout on NEWL.
I actually traded this little spike here for a quick $587 and then it failed. I got a little nervous so locked in my profit there and now we’re having an end of day run here into the close so I just back long only 2,000 shares because the stock is highly risky and I just don’t really have the balls to go in big here on this stock. But it’s definitely looking very bullish on NEWL.
What we’re looking for here is a move to $5 per share as that’s the next whole number resistance on this stock so it’s very probable that since we are breaking out of this resistance area right here that we could break out and move to $5 per share. But if we do fail this mark right here at 454 or break down a 13 EMA at 448 that’s very probable that this could be false breakout and this stock might turn back and I’ll need to cut my loss short as always you know it’s very important that cutting your loss short is part of your daily routine. Because it’s very easy to loss money in the stock market and a lot of people are like, “Oh man I lost money today.” A lot of times that’s because, not because you’re picking the wrong stocks.
Picking stocks is a very difficult thing to do. Not a lot of people can do it. I do it every day but that doesn’t mean I’m good at it. I just play the foose four patterns on a regular basis. But I lose 50% of the time. So half my trades that I make are typically for losses. But the only reason I’m able to win over the long haul is because as soon as I see a potential false breakdown where the stocks not going my way or it goes into a negative position I choose not to lose and sell my position. I can always re-buy and get into the stock. But you hold on to a losing position which so many people in the beginning do, is just stupid. I obviously did that as well in the beginning and that’s part of learning how to trade is just understanding discipline and money management. Understanding that losing is so normal. As soon as you can accept that the sooner your actually going to succeed in the stock market.
I’m still in Newl here, in for 2,000 shares. Very, very small position at 458. Here we go, looking like we’re about break out this flag here. If we do rip this flag we’re gonna move towards $5 per share I bet in a very short amount of time. I’ll lock in my profits, maybe even, you know this things probably going to gap up towards 5 or higher into tomorrow. It’ll be surprised to see a gap open. There’s lots of momentum on this stock. I actually got halted in this stock just a few weeks ago. We just had 50 to 1 reverse split back when it was right here. When it split I had 50,000 shares at that 49 cents and this stocked dropped 30% in that same day and I lost about $4500. So I got caught in this thing on a halt. So that sucked you know. I was actually stoked to only $4500. I was expecting to lose 10 to 15,000 on this stock cause I had $25,000 into the stock. I was just getting in for a quick scalp and two minutes later the stock halted and I was stuck.
So just trying make a few bucks back here on Newl. Fortunately I called this out perfectly this morning in the 270 range cause it was a perfect F1. I just was hesitant to get back into this stock because I just got my ass handed to it, to me last, a few weeks ago on this stock. It’s a very risky play. There’s lots of sketch news going on about it. The Nasdaq halted this stock because of some false reporting activity so they basically looked back into that, resumed trading, it’s about to get removed from the Nasdaq but they just did a 50 to 1 split so now it’s back up here again. I think this is like the 3rd split they’ve done on this stock. I guess they know. Back here they did a 1 to 50 split on the 15th of whatever frickin, May, July, June. But you know still looking here. I’m still long. It’s 480. I’m looking for $5 per share so that’s the next whole number resistance. It could get very choppy here just like I got in here last time on Newl at a 428 and then sold at 444, 445. So it was a very quick scalp there. I made about 560 bucks. $587 actually on Newl.
So still long here. In for the F3 breakout into the close just seeing what happens here. So just waiting, seeing what’s happening. I just wanted to get this live on recording so you can kind of understand more the pattern of trading. It could just be a quick scalp just like last time here. I just locked in a very quick gain and it came all the way back down. I would have sold it for a break even or loss so this could easily come back down to 454 and be a false breakout but I’m going to be a little bit more patient. I was always with foose four patterns, riding the 13 EMA a lot of times is your best bet and that’s exactly what happened here this morning. If we look at the intraday chart after the first initial F1 that actually triggered here at 267. Let me go back to a one minute chart, we’ll do a two minute chart, a little better view.
So this is F1 here at 268 and it actually came back down and retested the 13 EMA here and then bounced quickly and I was almost about to buy in here again as I was like ah you know I was talking about it live on foose TV and radaring it the chat room, I just didn’t have the balls to get in there. Just due to that fact that this absolutely killed me last time because I got stuck in that halt. So I’m definitely hesitant to allow much more risk in this stock. And then basically rose the 13 EMA on the 2 minute chart all the way up to 388 from 270 to 268 so looking forward here it’s basically, I had a nice consolidation pattern here into the close. We still got an hour and 20 minutes left in the market to trade.
So this still could do a lot of crazy shit before the close and I only have 15 minutes to record here on Newl. So we’ll see that happens. Still flagging here, watch for the flag break here. Potential run to $5 or higher if it breaks down about 450 here this neckline or the 13 EMA I’ll stop out. But I am long 458. Very small position just to kind of show it’s possible with these patterns no matter what size position you have.
It’s all about trading the patterns rather than what size of position you go. A lot of people are like but how much money do you put in that. It doesn’t matter how much I put in. Everyone makes money on their account based on what their account size is. So looking at my account doesn’t mean shit compared to what your account is. So if we’re account is. If we’re both doing the same thing and using the same strategy our accounts are both going to grow at the same rate. So that’s what matters. I started out with $5,000 years ago. Blew up my account multiple times and now I’m trading with $270,000 in my account and I’ve probably spent over $300,000 in profits.
It’s all about account building and learning the strategy and being able to utilize that rather than worrying about how big the position I’m taking compared to how much of a position your taking. So still a long Newl here. Also wanted to take a look at USU of which I [inaudible 00:08:24] here this morning for $841. Very quick scalp here on USU but I don’t know why my charts not lading here. What’s going on with USU here. If we take a look at Newl we’re actually ripping to the upside here. My 260,000 stopped working. So Newl continues up here. I want to take a look at USU which is the trade from this morning.
Basically what I look at on stocks like USU that make huge runs to the upside is as I wait for these stocks to pull back toward the 13 EMA on the daily chart here. So as you can see USU pulled all the way back and I actually traded it a few times as it continues to bounce near this 13 EMA area. It’s never a perfect trade or a perfect bounce but you know you can definitely look at that stock. Once it gets to that area, you’re looking for red to green moves or F1 flag breakout patterns. That’s exactly what we traded here on USU today. So if we look at, let me see if I have a screen shot of that as well, or we can just look at the chart here. We’ll look at the 1 minute cause that’s what I was looking at this morning live on foose TV. Hold on I’m watching Newl in the background here.
All right. So basically what happened here, I was looking for this for a bounce here. This was on the watch list for last night saying hey watch for the red to green move as we’re just below the 13 EMA but easily cold see a potential bounce to the upside. That’s exactly what I traded here this morning on USU. We got long prior to the breakout here. Its a very low liquid stock so it’s definitely sketch but I had an F1 breakout here at 490. So as soon as this thing potentially break out over 490 that’s a potential F1 flag breakout there.
A F1 flag breakout pattern is basically a stock that has a flag breakout right in the opening first two hours. But typically a lot of them happen within the first 20 to 30 minutes sometimes even quicker than that. So looking at USU the flag breakout here was at 490 so I got long here, 490 I believe it was and as soon as this broke out of this flag in addition to having that stop right around that bounce area. On the daily chart this thing ripped from about 490 all the way up to 545 in a very short amount of time. Drawing the flag breakout patterns here at 490 that was an F1 breakout trigger. As soon as that broke out this thing ripped all the way up to 545. It actually came back down and as soon as that broke down the 13 EMA on the 1 minute chart that was an indication of a potential trend reversal just on that time frame for 1 minute.
So a lot of shit can happen the rest of the day. One minute time frame and it has a quick reversal and a breakdown that doesn’t mean the stocks going to be done for the day. Just on that time frame, that means a potential short term reversal. But it did actually pull all the back to 50. Seven here now is the closing price as of right now but we still have a lot time left in the trading day.
That was a perfect example of the F1 where I ripped this for about $840. Riskman made about 900 and several other traders made a good amount of money on that stock. But checking out Newl here. This is breaking down here on the 1 minute chart. Retesting this 13 EMA area right about here. So this could be toast here unless it bounces right off this kind of neckline area. This thing is a very well tall stock which is why I don’t like to go in with a big position. Obviously if you hit it on the right side with a large position you’re going to make a killing but you’ll lose a lot very quickly if you’re on the wrong end of this trade. Still up 100 bucks on this secondary position. I already made a 580 just with you know small positions on this stock.
All right guys I paused it there for a second just so I could conserve time as there’s only about a minute and a half left here in the recording but look what we got here. Newl just hitting $5 per share here. I’m still on those 2,000 shares. Actually gonna sell 1,000 here at 496. I’ll just take advantage. So I just sold half. Got rid of 1,000 shares. 496. So again very small position here but still making money. Target of $5 has been hit. Lock in in half there, seeing if it gets a rip over 5 or not. Ill hold this second half as long as it holds 490 just to ensure my gain here cause my target has basically been hit. Now, that was stupid, what’s going on with the frickin recording software.
I just sold my second half here at 490. I made about a total of about $1300 on Newl today between those two trades. The videos gonna cut out in about 10 seconds here but basically that was it. The F3 breakout patterns with the re-target of the next whole number resistance which was $5 per share. Got out perfectly.