NEW Website - www.noobtrader23.com

I recently upgraded my site so now I have my own domain name. I also switched to wordpress so that I can have a little more flexibility. Check it out here - http://www.noobtrader23.com. All posts will be on new site.

Getting Started

If you are new to trading, check out my newest page here, and see the steps required to start trading. I know when I started it was difficult to even know how to start. But, starting is half the battle. Once you start then you can begin to gain experience, and experience is where the money is.

DRMC Results - DRMC

On wednesday I picked two stocks that I was watching. One was MZEI which didn't break the point I wanted it to so it was not a play. The other stock though, DRMC, did break the point I had wanted. .43 was the point I had wanted it to break and would have been my entry point. Unfortunately, I slept in that day and missed my entry. The stock opened higher at .46 then dropped to .38 but once it broke .43 it took off all the way to .52. Note to self, dont sleep in.

Potential Plays for 4/17/14 - DRMC & MZEI

DRMC is my main pick as it had a very strong finish yesterday. Its up pretty high as it is but has plenty of room to go higher. What I will be looking for tomorrow for it to break .43. That will be my entry point. This stock could very easily turn around so I will have my finger on the trigger if I do get in.

MZEI is my second pick. This stock has intraday resistance at .28. If it breaks that point I believe we could get a small spike. Both of these stocks are up pretty high so I will be quick in my profits if they do indeed spike.

Taking the Trading Day off so here's some Q&A

What is the PDT(Pattern Day Trader) rule?
The PDT rule states that if you trade more than 3 day trades in a 5 business day period of time you are considered a day trader. If this happens you must maintain at least $25k in your account at all times. In the U.S. you can use Suretrader to get around PDT or open a cash account(see below)

What is the $2.50 rule?
 When shorting a stock under $2.50 you have to have at least $2.50 in equity per share even if stock price is less. Example: You want to short a .50 stock and you have $10,000. To figure out how many shares you could short you divide $10,000 by 2.50 which is 4000 shares.

Cash account versus Margin account? 
A cash account is an account where you only use your cash, no margin. This allows you to get around the PDT rule but it takes 3 days for any money gained from selling to settle in your account. So if you have $3000 and you use $1500 for a day trade, you have $1500 left to use until the previous trade settles.

What's the best broker? 
This is different for each person and location. Different countries have different brokers. Also, the strategy you are using. If you use shorting in your strategy then I.B.(Interactive Brokers) or Suretrader are good choices. But, you also need a certain amount of $ in order to open an account with I.B. These are all the things you need to consider when picking a broker:

• Opening requirements
• Fees - Especially on shorting or buying pennystocks
• Software - Included or extra charge
• Level II access - Free or extra charge
• OTC shorting / buying allowed?
• Shorting allowed at all price levels?

How much money should I start with?
If you are playing penny stocks or low priced stocks then I would start with a minimum of $2000. It is possible to start with less but commissions make it very difficult to make enough to be positive.

Another Breakout Example - WAVX & SPLI

So today the big stock was WAVX. I did play this stock but I was too late both times. Each entry I was only .05 -.1 up before it tanked and I didnt have time to take profits. But it's another good lesson to learn, don't chase and take early profits. This stock showed up on my alerts this morning but I didn't act on it, like usual. I saw that stock as it broke 1.27.... Anyways, I did learn another window to keep up during trading and thats the volume alerts on EquityFeed. Look at the chart below and see if you can see all the resistance/breakout levels. Post them in the comments.

 

Towards the end of the market day Tim alerted us to SPLI. This stock spiked all the way to.086 so I could've profited more but I took early gains like should.  I got in at .0746 and out at .083. It ended up being +$109 which helped cover some of the losses from WAVX. While I was negative for the day, I am still learning and my losses have been down and gains have been up. Won't be long till I start profiting haha.

TimAlerts Silver Subscriber

I am now a TimAlerts Silver Subscriber. Mainly what this means is I have access to more videos to learn from. This should be a benefit to my readers as I will pass along everything that I learn here. If you are interested in becoming a TimAlerts subscriber please follow this link. http://profit.ly/guru/timothysykes?aff=3833

Social Media

Please follow me at all my profiles to stay current on my activities.

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Another Breakout - RDNT

So I got an alert from one of my alerts I set the other day about RDNT breaking 4.27. That was the closest resistance point previously. I got the alert at 11:31 and it stayed just above 4.27 for a few minutes. I drew a line where the resistance is. Once it broke it went up about 4.45 and came back down only to test 4.45 again an hour later. Once it broke 4.45 it spiked up again to 4.71. It is currently at 4.57 which is still far above the alert that I got. In all of the DVDs and gurus I've heard they say find your strategy and stick to what your good at. I believe I found my strategy and have gotten pretty good at find them. Now I just need the bank roll to be able to profit on some of the pricier stocks. I will only be playing these types of plays for awhile until I feel confident trading it.

Level II Basic Tutorial

This is tutorial is very basic just to give the viewer a brief understanding of what Level II is and how it applies to price action. Future tutorials will cover how to use Level II in more detail. Watch this DVD for a better tutorial - Level II

New Video - ThinkOrSwim OnDemand & Breakout Example

New basic lesson about time frames and how to use them

 When looking for breakouts, you obviously want to look intra-day and see how close the stock is to breaking its current resistance point or HOD. But, if you pull the 6 month chart or more, and can find the same resistance points, then you increase the odds of that stock spiking up when it breaks. In the 2 pictures below, the first one is a 10 day 1 minute chart and the other is a 3 month 1 day chart. You can see resistance at .10 on both. On the 10 day chart, when the stock finally broke .10 it spiked all the way to .16. This is how to increase your chances of buying a spike and it spiking enough to profit.

Equity Feed Filter Builder

A missed play but I'm learning - MNTR

I was watching MNTR today and saw that it was consolidating just under $3.00. I mentioned on TimAlerts chat that it could break $3 and when it did that it was going to rise. It ended up breaking $3 and went all the way up to $3.44. On the chart below I marked all the different breakouts that could've been bought into. I stayed on the sidelines today as I made some profit and didnt want to overtrade but I actually made some good calls so I'm proud of myself haha.

Profitable O/N plays - BCCI and JRCC

So on Thursday I was out of day trades which left me with only 1 option, and that was to look for good O/N plays. My strategy this far has been to find stocks surging in the last few minutes with large volume. There were 2 stocks that were active on the chats that I found that were surging like this. JRCC spiked up but then crashed right towards the end but I got in before the crash. This worried me especially since premarket this morning it dipped even lower. Luckily, it spiked up and I was able to get out with a small loss(due to commissions). BCII on the other hand was steadily growing. I had no idea how far this could go as there weren't any real solid resistance points ahead. I sold with a $176 profit.

FRTD Consolidation - FRTD

So after watching parts of the InvestorsLive DVD, I learned a pattern that I have started to really like. It's nothing revolutionary or something you probably haven't heard before but learning these easy patterns is the first step to profitability. FRTD has been consolidating these past couple of days. If you look at the chart you can see the lines I drew showing this. You can see that once it broke through the bottom line, it dropped almost .01. Obviously, this stock is too low to short without a huge account, but I am just trying to recognize patterns. Hopefully, this post/picture help you in the future.

Missed Opportunity and another painful lesson - FRTD

So I just recently watched part of the Investorslive DVD and just in the first few chapters learned some great patterns. One of which is outlined in this post. Nate calls it gearing/perking. Basically, what you do is find a stock that is consolidating(lower highs, and higher lows). Draw lines that are connect the highs together and another line connect the lows. The line connecting your lows is going to be your potential loss which will help you determine your risk/reward. When you see the stock break out of either line, you can buy/short into the spike/dip. Then the next day I saw this exact pattern happen right in front of me, but again I was too slow to pull the trigger. In the picture below you can see the lines I drew and how it clearly breaks out of the consolidation for a nice gain. I was upset that I did not take action, and so I chased it and bought in at .0565 and it immediately started to drop so I got out at .0511 which is where it mainly stayed the rest of the day. This is where it gets really bad. I was upset at not taking action/and then my big loss that I thought I could win some of it back. I got back in at .0527 and it dropped some more and I got out at .0502. I took the rest of the day as well as today off from trading to clear my head and get back into it tomorrow. As anyone can see by my results, this is not a blog to try and copy what I do, it is a blog to see what I do and learn from my mistakes.

Cut your losses/Never chase/Never try to win back lost money.

To purchase InvestorsLive DVD please follow this link.

New Strategy Results

On a previous blog post I mentioned I was starting a new strategy setting alerts at key resistance levels. Here are some results so far.

Alert LDKSY at .84 - Went up to .98
Alert GCVRZ at .50 - Went up to .61
Alert WPT at 22.03 - Went up to 23.7
Alert MMAB at 1.70 - Went up to 1.84
Alert TTDZ at .0411 - Went up to .0479
Alert FPMI at .85 - Went up to .90

So based on these, had I taken early profits, I could have made some decent profits. I was too busy watching FRTD and WIIM though to play any of these.

Finally some profitable trades - FRTD and WIIM

FRTD spiked up in the morning and I sold half my shares at .07 and waited for the other half. It then started to plummet and so I got rid of the other half of the shares at .063, just above what I entered at.

WIIM also spiked in the morning. Unfortunately, I wanted to have more money in my account so I could get back into FRTD if I needed to. I got out of WIIM at .3315. It went all the way up to .39 but I took early profits which is what my problem was previously.

#wolfpack and Wolfofweedst - FRTD

So on friday evening I bought 12,000 shares of FRTD as it had broken out and was finishing strong. I did not know at the time that it was being pumped by Wolfofweedst. The article below could definitely help his credibility which would cause a spike in the stock in the morning. I am planning on selling into the morning spike. I might only sell half and see how far this goes depending on the price action. For those of yall following the wolfpack, make sure to always remember that they are pumping the stock for their own profits, not yours.  I am not saying they are doing anything wrong or pumping with any bad intent, just always be cautious and plan accordingly.

http://seekingalpha.com/instablog/22369991-wolfofweedstreet/2815993-making-dangerous-a-umptions-of-a-callous-nature-the-underestimation-of-the-wolfpack-extended-family

Check out new Promoters page

I added a page on this blog to list all of the penny stock promoters I can find. Click the link and then add your email. I recommend making a separate email specifically for these as they do spam your email a lot. Check it out HERE.

Example of a Breakout - GNK

I was asked by a reader to give some examples of chart patterns to look out for. Below is GNK, a stock I posted about before. I set an alert at 1.82 to text me if it broke that price. I received the alert but did not act on it and the stock proceed to hit 2.89 in a few minutes. The two charts below are a 10 day chart and a 1 month chart. The red horizontal line shows the resistance point of 1.82. You can see that once the stock broke this point, it skyrocketed up. The reason it spiked as big as it did was because shipping stocks were hot at that moment. Either way, if you are watching for breakouts, it can be very profitable.

I now have a twitter account

Here is my twitter account. NoobTrader23. I would appreciate it if you would follow me. I will post a lot of content on here as well as my trades as they happen. My blog will always be a little delayed but my twitter should be instant.

Cool video for some motivation

O/N trades - WIIM and FRTD

So due to the PTD Rule most of my plays are going to be towards the close and hold o/n. I'm starting to use equityfeed and one of the scanners I use pulled WIIM. It was closing strong with strong volume so I decided to make a play. I got in WIIM at .32 which it dipped right before close but I'm assuming thats just due to people taking profits/not holding over the weekend.

My second play today was FRTD. It was very popular on chat and had a pretty strong day with some potential positive news over the weekend. I got into FRTD at .0622. I'll be looking at both of these for a morning spike. This time I will take profits or losses quickly. I don't plan on holding these very long.

Failed breakout - BBY

I was alerted on TimAlerts chat that BBY was a potential breakout. I got in early waiting for the breakout but it stalled and then failed to breakout. I got out with a minimal loss. I did add an alert to notify me when it broke $28. I also will be reviewing Pennystocking Part Deux DVD 2 pretty soon. Expect it sometime this weekend. I might do DVD 3 as well depending on time.

Coulda Woulda Shoulda - GNK

So I am attempting a new strategy that had its first success today. Unfortunately, I was not confident enough to trade it and now I regret it. My strategy is to look at any stocks that are active and add alerts above any resistance points it has. The perks to this strategy is that instead of keeping a HUGE watchlist I just set the alert to send me a text, and when that stock hits my buy point I have the opportunity to buy. Well week ago I set an alert on GNK at ~1.80. I got an alert today that the alert had been triggered. A minute later the stock spikes to 2.20 and now it is at 2.89. Obviously its easy to look back and say man I should've bought, but this at least is a step in the right direction for finding my strategy. I will let you know any future stocks that this strategy works with.

Lesson Learned - Take Profits!!! - VEND

So VEND spiked this morning to $4.29 and I had an unrealized profit of around $100. I decided to wait though and watched it plummet until I exited at 3.89 for a $60 loss. I took losses quickly but I should've taken profits quickly as well. Note to self....TAKE PROFITS..DONT BE GREEDY!
It also rebounded back to 4.15 and is now settling at 4.05 which is what I had bought it at. 

VEND

I subscribe to TimAlerts and today around 1:30 he suggested VEND as a buy due to an earnings announcement. I was able to buy 375 shares at $4.05. This spiked all the way to 4.30 but I decided to hold overnight due to the day trader rule. I am expecting this to spike in the morning at which point I will take profits.

Welcome to the Noob Trader blog

This blog is going to serve as a way for me to learn more about the stock market and for my viewers to learn from my mistakes and successes. I will post all of my trades both winners and losers. I will post any lessons I learn from my trades and any other advice or information that I find useful. My strategy will be day trading stocks anywhere from $.01 - $5 until I grow my account to a respectable amount. Hope you learn as much as I do and we all make some money.