Most Companies Fail — So How Can You Trade Them?
- [Sykes] Hey, Tim Sykes here, pre-market video on LCLP and a bunch of other stuff, it's not ideal, okay? I want you to understand trading is not an exact science, nothing is ever perfect, but if you're in the right place, especially at the right time, you don't need to be perfect. LCLP, I've been buying it literally since the beginning of the run-up underestimating it almost every time. And yet, I've now made several 1000s of dollars playing it safe, yesterday had a really interesting issue where I wanted the morning panic, but I literally could not by this little panic right here, I dropped from 46 to 41. I was trying to buy a ton of shares here at 42, 43 coulda woulda sorta should have sold them here at 51. It would have been like a three, four or five, maybe even a $6,000 profit, which for me is big, considering that I'm trading small right now, as I'm traveling during a little bit of a slower summer, but I missed it because E-Trade had a pop-up, there's some new OTC agreement that you have to sign, basically, just saying like OTCs are risky, yes. OTCs are risky, tell me something I didn't know E-Trade, come on, a lot of people experienced it.
I have no problem signing these long agreements, so they can cover their as legally, whatever it takes. But at least let me sign the agreement during non-market hours, not what I try to put in an OTC order. And then I'm surprised and frankly, I mean, if you're trading morning spice, if you're trading morning panics, seconds matter, anybody who knows me, like knows not to message me, text me, talk to me, look at me, seriously in any way around 09:30 AM to 09:35 AM Eastern, my sole focus is on whatever is moving, because literally, I mean, it took me, I don't know, I had to scroll down and it was like 30, 45 seconds to sign the agreement to tell you the truth. I didn't even look at what it said. I probably should have, but at the same time, I was just busy like trying to capture this. And I still did profit.
I caught it a little later and I caught some of this move, but I didn't get the size I wanted and I didn't get the price I wanted, and the interesting thing is I actually had to leave, it was actually a better second dip by right here in the low fours. And it went all the way up to the low sixes. So this was like a 50% move from like 09:40 AM to like 11:00 AM. So, and then I caught some of this dip right here too, there's like an 11:00 AM panic too. So there's multiple opportunities, it just sucks.
So I vented a little bit, I'm sorry, E-Trade that you're so incompetent for not realizing that seconds matter, I mean, they're a freaking broker, they're a trading platform. They should want their traders to do well, but this was probably a legal decision from their legal department being like OTCs are risky, penny stocks are risky, short selling is risky. Day trading is risky, life is risky. None of us make it out alive, okay? I'm just annoyed that there was solid opportunity there, but at the same time, I'm making a video, not just whining about it, not complaining about it, helping you realize that stuff like this happens, okay? When I first bought LCLP in the three 10ths of a penny range, right in here, profitably, it was trying to introduce a new dark theme on the chat room, I was trying to give a webinar.
I didn't have good WI-FI, so the webinar was crashing. The new dark theme, like screwed up the alert somehow. So we're still working on it, but that's coming soon. And I couldn't alert LCLP or, I clicked alert and I didn't even think that it didn't go out.
And then I was like, oh, I'm gonna sell it. And people were like, what are you talking about? So, I understand software has problems, broker has problems. But again, the good news is if you're in the right place at the right time, even with these problems, you can still profit.
These were, oh, this is a video I'm gonna actually post a second video here. I had two trainings challenge students in one day, cross a million dollars. When I first started making this video, there was only one, by the end of the video, the other student had crossed a million too. Pretty cool, this was from my time in Greece.
And if you want to get inspired, I mean, I literally had this Villa rented for like a little over a week. It really had its own mini (indistinct). I'll promise you this, I'll promise you this, I'll promise you nothing.
I'll remind you that 90% of lose. I'll promise you nothing. Okay, so get inspired by how beautiful it is. But yeah, some people say, why do you keep bringing this stat up like it's disheartening? You need to be realistic. Just like I'm saying nothing is perfect, whether it's E-Trade or profitably your LCLP, you gotta be just aware of how many people screw up. And it's not like I want to dishearten people, it's not like I'm trying to make people feel bad.
I want you to understand that the odds are against you, if you do not prepare, why do 90% of traders lose? Because 90%, maybe even 95% of traders under prepare, they don't think about these issues. They don't think about taking the meat of the move. They don't think about taking singles or cutting losses quickly or trading small.
They just think good company, bad company, profit loss. They think like caveman, like me hungry, me want food, like it's so overly simplistic. And for me, some people are like, oh, Tim, just get to the point, talk about this. No, you need to know about the nuances.
You need to know about problems. This isn't the first time E-Trade has had an issue. It's not the last time, it's not the first time that any broker's not just an E-Trade thing is gonna have an issue, all brokers have issues. So we talked about it.
But the crazy thing is that most people don't even realize that a few seconds matter. So I want you to understand my mindset. Like literally at the market open, no one talked to me, no one looked at me, no one messaged me.
If you're in the trading challenge, sometimes I'm trading and people are like messaging me. And they're like, I don't understand this. And I'm like, yeah, ask me questions when I'm giving a webinar, never while I'm in the middle of the trade.
I don't think most people realize the focus that I have when I'm in a trade. I'm looking at every single trade. And I'm not saying you have to do that, but I'm just telling you what I did.
And this is now I catch a lot of these big moves. That's how I usually sell a lot of these big moves too soon. But I'm still profiting even when the doubt, I mean, it was down nearly a 1000 on the day, came back a little bit, but we're up so much. It's so important to have the proper perspective. This is just 200 days.
If you look at a year, I mean, look at this. This is the Dow, okay? These are the 30 biggest companies. If you look at the S&P 500, these are the 500 biggest companies. If you look at the NASDAQ, these are mostly stocks.
I mean, the NASDAQ is up, what, 50% in a year? I mean, this is not sustainable, okay? The economy is not growing this fast. Companies are not doing that well, the reason why this stuff is going up so much is because frankly, a lot of people have stimulus check funded accounts, they've been laid off. They're working from home, trading is booming. Part of the reason why I'm so overwhelmed is because I have quadrupled the number of millionaire students in the past a few months alone. Like literally watch this video.
And it's pretty crazy, not only am I just showing off this crazy Villa 'cause I do think visual motivation is useful, I mean, literally I had my own mini golf course, but same time, listen to the video and hear how overwhelmed I am because we've quadrupled the number of millionaire students. Like literally two students became millionaires in one day, it was Brock and Roy and again, a million dollars, isn't the end all be all, but it's a giant milestone. I'm trying to teach you to dream big, aim for those big goals and then work your butt off every single day to try to achieve those big goals over time, there's a method to my madness. Okay, it's not just like, oh, everyone's gonna become a millionaire, as I say, 90% of traders lose, but you need to have the right perspective.
You need to have the right mindset and you need to trade the right stocks, okay? LCLP is the single biggest percent winner in the entire markets over the past three days. It's still up a lot. And I wanted to also make this video pre-market because there was an SEC filing late last night where they talked about a billion shares. Is it a new filing? Is it an amendment? Like it's all very gray area, where they're thinking about doing a reverse split, it's like, what price is the offering happening at? No matter how you slice it, no matter how you want to look at it, it's not good news. And it's never gonna be good news with these shady companies.
Like people literally are expecting these companies to be like the next Microsoft, the next Google, promoters fill newbies heads with so much BS. If, and when there's an sec filing, if, and when there's news on any of these sub penny stocks, I mean, this is still a sub penny stock in my mind, even though it's not sub penny right now, in actuality, in reality, the way that this company operates, like it's a sub penny play, okay? Sub penny stocks, you can not trust, expect the absolute worst from these companies. So I tweeted about it. Sure enough, all these promoters were like, Sykes you're a fraud, you're an idiot, you're lying. And I'm used to it because when I tweet or whenever I comment about one of these sub penny plays or these junky companies filled with a lot of promoters, the promoters don't want people to know, okay? If you watch my last video lesson, I showed you a screenshot of all the promoters saying, you talk crap about our pump, enjoy the dislikes coming. So it's a massive inspiration or information overload where they try to say, Sykes is a fraud.
He's short selling this stock. I have never nor will I ever short a one, two, three, four said stock. I haven't shorted any stock in nearly two years. I'm sleeping better as a result, I would be scared right now to be a short seller. There've been giant squeezes, so no, I'm not short-selling.
But at the same time, I'm not just gonna sit back and you'd be like, oh, this is such a good company. This is a junk company. Expect the worst out of every company. And you'll never be disappointed.
Leave that in the comments. I really want you to have this cynical approach. It's good to be safe. Leave the comment right now. You can put it in lowercase or you can put it in uppercase.
Let's see, who's listening to the end of this, expect the worst out of every company. So you'll never be disappointed. I know that's a kind of a dark view, but it's the reality for trading these penny stocks.
These sub penny plays expect the absolute worst. So if you're holding these things overnight, I think it's very risky. For me, I like the morning panics, I liked the morning spikes, you don't have to risk it. Like I'm not trading AMC, I'm not shorting AMC. My WI-FI went out, hold on one sec. This is a AMC, I literally am not trading it, but I'd comment on it because there's so many newbies in it.
These apes and they're like apes strong together, we hold together. And when it was here around $50 a share, and I see price targets of a 1000, 2,000, $5,000 saying like getting my squeeze. I'm like, you newbies are such morons. It's already gone up more than it has ever deserved.
Maybe you get another squeeze, maybe at best case scenario, it does one giant squeezing a break 70, it goes to 100, best, best, best case, in all likelihood it's gonna drop. And I said this on a, I think it was like the ninth or the 10th. It was right around, oh, it might've been right here. Yeah, because I was looking at the chart. It was like the eighth or the ninth. It was right around the stock was at 50.
And now the stock is in the 30s, it's down nearly 40%. You just don't have to hold through that. I'm so sick to death of these diamond hands where you just hold, it is the worst, worst, worst discipline I've ever seen, people holding Dogecoin, people holding G&E, hoping for these once in a lifetime type squeezes that we saw a few months ago because of the stimulus check funded accounts and all the hysteria, okay? Let's not forget, Coinbase IPO two was such, ah, God, this damn WI-FI, you can see how slow my WI-FI is, an IPO it was into such hype. I saw Jim Cramer being like, it's a buy, I think he said, it's going to like 475 or he thinks it's worth 475 or 425, something in the 400s.
And I'm like, this is the stupidest thing ever. You cannot give into the hype, okay? Now you've gotten destroyed in coin market cap. Some people said like, oh, Voyagers is the next big thing. This is like a little smaller crypto broker. And this thing is down from 30 down to 10.
I mean, Dogecoin is down too. Expect the worst out of every company, out of every broker, out of every single trade, and you won't be disappointed, okay? Your trade the volatile stocks, you'll learn the morning spike pattern. The morning panic pattern, I'll link to blog posts below. But if you're playing overly safe, like I am, and I still made a little over a 1000 yesterday, even missing the size, missing the perfect entry, playing safe in profiting small, and guess what? The reason why I've quadrupled the number of millionaire students lately is because even if you trade overly safe, even if you trade overly small, the volatility right now makes up for it. You don't have to take big risks because you have so much volatility, I don't know how long it's going to last? It depends on how many stimulus check funded accounts, we're churning and burning. And if I had to guess, if you have a gun to my head, I would say probably, towards the end of this year, maybe next year, and then, I don't know.
So I want you to just maximize this. And then some people say, well, the market is gonna crash or from the stimulus joke, like, no, I don't know what's going to happen, I'm just speculating. But for me, I take it one trade at a time, one day at a time.
So with LCLP, I'll be looking for another morning panic where their whole little shady amendments. I have no idea what they're doing with the shares or the reverse splits. Oh, FYI, one last thing before I go, a lot of companies put out these press releases, like we've retired chairs, before we had five billion shares, now we have three billion shares. I've lost track of how many pumps have said this. You cannot keep track of their BS.
When they say that they retire shares. You don't know that they do, part of the reason why I want you to leave a comment below saying, expect the worst that I've ever company. I'll never be disappointed. I want you to look at these press releases as the jokes that they are, every single pump for years, decades, that I've seen, that has issued this kind of press release. We've retired shares, we've extinguished our debt. They're almost like entirely guaranteed to drop 80, 90, a 100% when they put out that press release, because why? most likely, and again, I'm not a lawyer.
I don't get into the details of what's legal and what's not legal, maybe they retire, shares, and then they put it into like an offshore shell company. And then, technically it's not on shore. So then you can't track the shares. All I know is when they put out those press releases.
Maybe it spikes for a little bit because everyone like rejoices, like, oh, this is the one, it's not, they're just lying, okay? The shares are usually not retired, And I'll give you an example with SpongeTech many years ago. Let me just show you this. So in case you ever want to know, I'll post the link to this article.
This was from over a decade ago when I was mainly a short-seller, SpongeTech was one of the pumps that I was shorting. They claimed they had like soap inside the Sponge, They had a multi-million dollar advertising campaign, they were advertising and like the US Open Madison Square Garden, turns out they didn't have any money. There was a whole like fake management, fake PR firm. They gave like a phone number and it was like, disconnected later, anyways, long story short, giant fraud, they actually put out a press release that they were gonna sue me. And I had never been sued before. I was like, what's going on? Like they claimed that I was in a short selling conspiracy with the New York Post.
Like if you read this article, it's actually pretty funny. And literally I never even talked to the New York Post writer. Like the New York Post writer had just highlighted a blog post that I had written about all the promoters involved, but they were like, Sykes is shorting big and working with the New York Post to take us down.
I think I made like two or $3,000 shorting the company. I was shorting the stock back then, because there were just so many promoters. I think I was shorting like, I want to say like 18 or 20 cents, 'cause it was up from like a third of a penny. So it was up like 60 times.
I don't short sell anymore, but again, I am a short sellers mindset because I've seen so much BS, and the point that I'm trying to make here. AM is laughable that the CEO was arrested for fraud and later charged and they spent time in prison, and the whole thing imploded, it was one of my first big like feathers in my cap where it's like, oh, I actually called this ahead of time. They had a press release where they said that they were gonna retire shares. And in the trial, it turned out they didn't retire any shares, in fact, they actually had created more shares and were selling it. So when they said that the retired shares, they were actually diluting more, it was a total lie. So again, I don't know, what's legal and what's not, not with these companies and their press releases, and their lawyers in their own conscience.
But I'll tell you, history shows time. And again, that these stocks, A, crash big, and B, usually the company is lying. They're not retiring shares, they're just hiding them or selling them. And it's just nasty.
So if you ever think, if you ever somehow like fall for like these promoters saying like, this is a good company, they're not expect the worst, and you'll never be disappointed, that said, utilize them for their volatility in their more predictable patterns. So it's kind of an interesting scenario where people are like, God, Tim, you talk so bad about these companies, why are you trading them? Because they're easier. I'm grateful for the promoters for creating such predictable patterns, I just won't tolerate their BS lies. I'll see you guys in the chat room, leave a comment below.
Hopefully this helps you be a little more cynical and stay safe, I will not hold any of these kinds of plays overnight. You never know what's gonna happen, morning panic probable. We'll see if we can get a bounce. I don't know, we'll see how big the panic is, see you in chat.