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How I lost $500 When I Ignored Timothy Sykes’s Trading Rules
Posted on Sep 10, 2008 - 12:30 PM ESTAbout a month ago, in THIS blog post, I proudly announced that I was going to start trading. After all, it only made sense - I read and moderate all of Tim’s blog posts and alerts, and I should by now have a good understanding on how the market works and when to buy and sell. Or at least that is what I thought.
About a week ago, I bought a certain Uranium stock called URRE. I bought it because 1) there was talk of a takeover by a bigger firm, 2) the stock was still reasonably priced for a company that had over $7 billion worth of the radioactive mineral and 3) I wanted to gamble. Now if you ever read any of TIM’s blogs - the first thing he mentions is to ignore all 3 of the above points. He focuses on charts - and not the company. He doesn’t care if there’s going to be a takeover or if the company is legit or shady - if he sees a chart pattern that is sure to be a winner, he trades or shorts.
Unfortunately for me, I decided not to look at the chart and decided to go with my instincts - here was a NASDAQ listed Uranium company that was cheaply priced and had some good chance of going back to it’s glory days of $12/share. Well, I was wrong. Today, after holding this stock for a week, I finally sold. Took a loss of approx. $500 as well. Here is what you can do to not lose money like this:
1. Keep emotions at bay - when you trade, look at chart patterns and learn how to read them. Forget message boards, and news headlines and shady stock promoter advices. Understand the chart - and when you do, don’t let your emotions come in play. Don’t think that tomorrow the price will go higher. It won’t.
2. Buy a book or a DVD that teaches you how to look at charts and understand them.
3. Do not gamble. Take calculated risks that are 75% guaranteed to make you money. Subscribe to TIMAlerts and follow the advice - if Tim says do not touch this stock, then do not touch that stock.
So where do I go from here? Well, for one, I only trade stocks listed on the TIMAlerts and I’m slowly understanding how to read chart patterns. It takes a while, but it can be done. I’m also no longer looking at small scalping plays. And slowly but surely, I’m becoming a little more disciplined.
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CAmeron Fous
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Pallian
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Dean
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Pallian
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Woodshedder
About Adarsh Pallian
Adarsh Pallian is the founder of Tweetizen and the creative force behind Pallian Creative. With over 10 years of experience, he has the passion, creative flair and technical expertise to deliver innovative websites and web applications with a unique user experience. Head over to the About page to learn more, or get in touch by clicking here.
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