Tim Grittani got interested in penny stocks back his college days while studying finance. Despite a rocky start to his trading career, the modest twenty four old has gone on to become Timothy Sykes second millionaire challenge student, hitting the million dollar mark at the end of January 2014. Fast forward to 2017 and Grittani has just passed the $4 million mark in profits and is estimated to have a net worth of $3 million after taxes. In addition to day trading, he also earns money from the sales of his DVD “Trading Tickers” which retails at a whopping $997.
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.
- Uses Level 2 and charts to time his trades. Level 2 complements 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.
- Doesn’t care about the story of a penny stock, just how the market reacts.
- Mentality: Every OTC company is a giant “POS”.
- He was a finance major at Marquette University and was drawn to stocks from his gambling mentality due to his background in sports betting and online poker.
- Opened 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.
- In February 2011 he found Timothy Sykes and Investors Underground, this gave him more structure and guidance to his trading.
- 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 again 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 stocks full time.
- Despite all the video lessons and tips from guru’s like Michael Goode and Nate Michaud, he was at $3500 by October.
- He foolishly tried to blindly follow Tim Sykes 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
- Like so many of Timothy Skyes students, he thought he could match him trade for trade. Gritani wasn’t able to match his entries or exits on most alerts. It’s not Tim’s fault or that he gives bad alerts, the problem is that penny shares are too volatile and hundreds of other students are copying his his every move. He realized this wasn’t working and had to begin thinking for himself.
- Chased pump alerts as well – very lucky he didn’t blow up his account. Chasing alerts is a very risky strategy that can be destructive to an account!
- SOLUTION: Learn from his alerts instead – It’s okay to sit on the sidelines from time to time. He would review Tim’s video lessons later that day to understand his reasoning and why he bought and sold a certain stock at a certain price.
- If you don’t fully understand what you’re doing, stay away – from time to time you might get lucky scaplying a buy alert from PennyStocking Silver but this is not a reliable method.
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
- Top Penny Stock Brokers he currently uses – 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 is unreliable as they can’t cope with the demand.
- OTC executions aren’t very good.
- No overnight shorts under $1.
- $2.50 rule now enforced.
Despite early losses, Tim Grittani recovered and is now known as one of the best traders on profit.ly. Due to his unbelievable success story, Tim Sykes heavily promoted him on his website to prove that day trading penny stocks can be a lucrative method to make money. CNN Money even featured him in an article detailing his journey from beginner to penny stock millionaire. This sparked a wave of attention on social media, with thousands of like-minded individuals wanting his learn how he achieved this milestone at such a young age. With all this attention Tim Grittani received from the vast amount of media coverage, he decided to release is own educational DVD to answer questions typically asked by inspiring traders.
Trading Tickers is mainly targeted at rookie traders, starting off with zero market experience. Grittani details his core strategy that has helped him accumulate $4 million over the last 5 years. It’s extremely unlikely you’ll come close to achieving his level of success but he will give you every possible advantage he can but it’s up to you to put that to work. It took 7 months to create his DVD course, detailing every facet of his strategy. Basically he is teaching you everything he wish he knew before he started. This gives you the chance to learn from his mistakes and drastically speed up your learning curve. The course is quite dense with 16 hours worth of content showing you how to perform technical analysis, build watchlists, prepare for the market each day and how to find plays. Once he covers the basics in the opening 4 chapters he explains specific strategies he follows for consistent profits, these include – buying new OTC promotions, buying breakouts on both OTC & listed stocks, shorting pump and dumps and shorting overextended stocks. More importantly he shows live trading examples of how to apply these strategies in real-time and the reasoning behind every entry and exit point for a trade. Trading Tickers is currently one of the highest rated products on Investimonials so it’s not a scam and you can use the discount code NEXT100 to save $900 on your purchase.
Make sure to checkout his blog tradetheticker.blogspot.com for his free watchlists, spreadsheets, video lessons and blog posts.