Timothy: Back at the beginning 1999 of the year, when i was in high school, stock market стремительно рос, and the resulting injury did not allow to actively engage in sports, so I plunged headlong into trading in the financial markets. My parents gave me control 12.000$, being confident, that I will lose them, and this will be a good lesson for me. But instead I turned 12.000$ in 123.000$ to the beginning 2000 years and then in 800.000$ by the end of 2000. It was sheer madness for a middle school student, but as I wrote in the first part of my book, my strategy of buying penny stocks on price breakouts was ideal for the market environment.
Question: What do you like most about the trading business?
Timothy: I love the challenge of trying to find effective strategies and patterns in ever-changing markets.. I have had to adjust several times during my ten year trading career..
The key to success is like trading, and in public speaking, is, to be open and honest. Hardly anyone had guessed before, that total honesty would be such a revolutionary concept in such a business, how stock trading.
Question: How do you view losses and how do you set your risk tolerance threshold before, what was the deal?
Timothy: My approach to risk is simple enough: if the deal does not develop in this way, as i assumed, when I entered the market, then I close the position. Irrelevant, will I have a small profit or a small loss, undervalued stocks move so volatile, and I trade the most volatile stocks, that I can't afford to get into the movement pattern, which I'm not sure about 100%.
Question: Your trading approaches are more tailored to long-term or short-term strategies?
Timothy: Only short term, but since my strategy is based on the ideological structure of deception / manipulation, I'm sure, that long-term taking of positions is also possible. I just never had the patience to try it.
Question: What are the key rules or factors you consider before choosing any potential trading opportunity?
Timothy: I want to make sure, that shares, which I trade, are "in play", because I want to see many traders involved, as their participation opens the door to strong price action, on which I can profit. It means, that I am looking for liquidity in the market, and bulk emails are a great indicator that, how many traders are involved in a given market action.
I know, that it sounds a little strange, but I really try to treat every trade as the last one. In this case, I wait until the very last second of that price, on which I just can not refuse the deal, because the setup looks so perfect. There are so many fakes and false moves with penny stocks so patience and discipline are key ingredients for successful trading..
Question: Какие рынки вы предпочитаете для торговли и отслеживания с помощью своих инструментов анализа?
Timothy: I only trade cheap stocks, прежде всего на Nasdaq, but sometimes on AMEX, NYSE и OTCBB. I guess, that there is a great advantage here for traders with small accounts, and I won't get tired of repeating, that small cap traders have the best odds and can use their small account as an advantage, when trading stocks at 3$ or 2$ instead of extremely popular stocks, who stand 300$ or 500$.
Question: What was your most memorable deal?
Timothy: It was an ISCO deal in the beginning 2000 years I took a long position on it, having invested 75% your capital at the end of the week, because they announced, what will be shown this weekend on CNN. CNN's report was very positive, and the price at the opening on Monday gapped at 29$ with 17$ on Friday. I closed my position with a profit in 123.000$ and in the evening he treated the whole student hostel to lunch.
Question: Учитывая все разнообразие инструментов технического и фундаментального анализа, как начинающий trader может избежать информационной перегрузки или, so-called, "analysis paralysis"?
Timothy: Really, there is a lot of noise in the market. I think, what the key is, to block almost everything, and remember, that a huge number of traders and financiers are losing, how personally, and professionally.
Research shows, what 90%-95% intraday traders lose out, and analysts are right, maximum, in 30% cases, and more 70% mutual fund managers fail to beat the S index&P500. I guess, that this whole industry is trying to hide its failures and low efficiency.
In this way, you can't really listen to anyone, who does technical and fundamental research, especially on cheap stocks. Press releases and earnings reports are misleading, to keep your shares afloat, as it allows you to increase the collection of money.
Question: How would you characterize your technical approach to the markets?
Timothy: I am confident in technical analysis only because, what other traders do it. The breakout has no real meaning outside the world of traders, but since chart patterns influence the decisions of thousands of other traders, this inevitably affects the price in a completely predictable way, and I pay close attention to this. This works especially well in my niche., because these companies do not have any fundamental indicators – respectively, technical analysis является единственным возможным видом анализа!
Question: What kind, In your opinion, самые большие заблуждения начинающие трейдеры имеют о торговле на рынках и о торговых системах?
Timothy: After the trial period, when they are making consistent profits, many novice traders strive to make the most of leverage, because they want to make "big money" so fast, насколько только возможно, especially, considering the huge number of "magic trading systems", guaranteeing reliable profits – each of which, naturally, costs several hundred or thousand dollars!
Question: What advice would you give a person, just now starting to trade in the markets?
Timothy: I would advise him to read as many books as possible to begin with., before betting real money or even trying to understand trading through specialized sites. Читайте классику, like "Memories of a Stock Operator", "How did I 2 million on the stock exchange ", if you want to be a trader.
This business is full of maddened gamblers., no different from those, who puts the last money in the casino. They are, probably, were not even involved in trade in the full sense of the word, because they didn't have proper discipline, intentions and diligence, to understand, that successful trading is like running a real business – you must be meticulous, otherwise you will fail.
Too many enter the trading business hoping to make quick money which is the surest road to ruin. Instead of this, concentrate on learning, because, this – marathon, not a sprint.
Question: Вы можете описать свой обычный торговый день и среднюю сделку от подготовки до исполнения?
Timothy: Firstly, i don't trade every day. Secondly, my preparation does not start at the beginning of the day, and from the previous evening. When the market opens, я уже провел 1,2,3 or 4 hours the previous night or early in the morning, having reviewed all the fundamental (еще раз повторюсь, that shares, which I trade, do not have an economic base as such, so my goal is to find out, how many players are involved in this market) and a technical picture for all my potential deals.
Then it all comes down to just the power of the graphical model.. I stay on most of the time 100% в наличных, taking only 1-2 positions, when all the necessary components are really there.
Как я уже сказал, I'm not looking for deals – i try not to trade, and I enter the market only if, if I can't afford to stay out of the market. Sometimes I still break down and rush, but the best deals are those, where I am extremely patient.
Question: Какой процесс принятия решения вы проходите перед выбором определенного сектора рынка и конкретной сделки, которая стоила бы открытия торговой позиции?
Timothy: I look at the power of a trade setup. Perfect, if the volume increases several times from several hundred thousand to several million shares during 2-3 days, because there is a high likelihood of a quick reversal. I love short positions in similar markets.
I have no market sector preference, except for only sudden movements as a result of really significant events, sort of FDA approval, high income or large contract.
Question: What analysis methodology do you use, to find the best trading opportunities?
Timothy: This is a rather broad question., но если в двух словах, then you can say, that I find the worst companies with the most liquid stocks in the shortest amount of time. I do intraday sales of penny stocks.
