Tim Grittani, the modest twenty four old is Timothy Sykes’s second millionaire challenge student, hitting the million dollar mark at the end of January 2014.
What He Does
- His main strategy involves trading momentum OTC stocks+ pump and dumps. He trades them purely from the technical side, using basic support and resistance. Tim doesn’t use advanced technical indicators.
- Use Level 2 and charts to time his trades. Level 2 complaints the charts beautifully.
- Trades are determined mostly by price action.
- Doesn’t care about the fundamentals of a company or what the press releases say because hype is meaningless.
- Don’t care about the story of a penny stock, just how the market reacts.
- Mentality: Every OTC company is a giant “POS”.
His Humble Beginnings
- He was a finance major and was interested with a career in the stock market.
- Opened up an account up a $500 account with Sharebuilder and lost 50% within 2 weeks. After this he took some time off and wanted get a better stock market education before risking anymore more money.
- Found Timothy Sykes in February 2011, had only $1500 to trade with.
- Followed Tim for three months and joined PennyStocking Silver. While still in college he studied his videos and participated in the chat room from time-to-time
- Started trading in May 2011 with $3000 with a ThinkorSwim brokerage account.
- Borrowed $11,000 from his parents and opened multiple trading accounts to overcome the pattern day trader rule.
- By August he was day trading penny stock full time.
- Despite all the video lessons and tips from the guru’s like Michael Goode and Nate Michaud, he was had $3500 by October.
- He foolishly tried to blindly follow Tim’s alerts.
- The pattern day trader rule was a big obstacle for him.
- Didn’t have the right brokers early on, so he was unable to get the best borrows.
- His emotions affected his trading results considerably.
- Overtrading. i.e. Chasing losses
Problem: Mindlessly Following Alerts
- Thought he could match Timothy Sykes trade for trade. Stocks were too volatile, couldn’t match his entries/exits. It’s not Tim’s fault or that he gives bad alerts the problem is that the market moves too fast. Would not think for himself, bought he said buy, sold if he said sell. He realized this wasn’t working for him and had to start thinking for himself.
- Chased pump alerts as well – Very lucky he didn’t blow up his account. Chasing alerts / price action destructive to an account!
- His SOLUTION: Learn from his alerts instead – It’s okay to sit on the sidelines from time to time. He would also review Tim’s videos later that day to see his reasoning why he bought and sold a certain stock at a certain price.
- If you don’t have full understanding, stay away – try’s to scalp a buy alert because Tim’s 2000 subscribers creates upward momentum.
Problem: Day Trader Rule
- 3 Day trades every 5 business days per broker if your account size is under $25,000. This allows you to have 9 day trades a week. Once he hit the $25,000 mark he closed his accounts and merged it into a SpeedTrader account.
- Solution – Open up multiple brokers
- Another solution: Setup a Suretrader account, no PDT rule because it’s based in the Bahamas and has decent borrows.
- Never let “Saving a day trade” influence you!!
Problem: Wrong Broker
- Best Brokers for trading otc stocks – Speed Trader, Interactive Brokers, Centrepoint and SureTrader.
- Cheap Commissions – Flat
- Many OTC routes / Superior OTC executions.
- Excellent for early promotion buying.
- DAS software, quality Level 2 feed.
- If you want to short sell OTC pumps there are very few OTC borrows.
- Excellent borrows.
- Sometimes allow long-term holds.
- Low commissions if trading small number of shares.
- Very cheap platform fees.
- “First come first serve” for locates.
- No level 2 for OTC stocks.
- $2.50 rule enforced – this makes it tougher and you will big a big account to take a big number of shares.
- His favourite broker.
- Best OTC borrows.
- Many OTC routes – great executions.
- No $2.50 rule intraday.
- “First come first serve” for locates.
- Large account minimum – $30,000.
- Routing fee’s expensive if trading a large number of shares.
- In most cases three day minimum on shorts.
- One of Timothy Sykes favourite broker.
- No Pattern Day Trader Rule.
- Low account minimum.
- Pretty good borrows (ETC clearing).
- Much cheaper routing fees – you get what you pay for.
- Recently have gone downhill a bit.
- Customer service can be a headache.
- OTC executions aren’t very good.
- No overnight shorts under $1.
- $2.50 rule now enforced.
Make sure to checkout his blog tradetheticker.blogspot.com for his watchlists, video lessons and blog posts.