I just experienced first hand one of the worst rules of the US Stock market – The Pattern Day Trade Rule… in laymen’s terms:
You can’t make more than 3 day trades within a 5 business day period unless you have $25,000 in your account, or else you will get a $25,000 margin call and a 90 day margin restriction put on your account.
This is horrible, because when a good play comes up to either buy long or sell short for some intraday profits, you have to hold on overnight or risk losing big.
My first hand experience with this today taught me a VALUABLE (read: expensive) lesson about short selling and the pattern day trade rule in the US Stock market.
An awesome play came up today with HSN, Inc. ($HSNI). Basically the stock went from $3 to $6 within a few days, and so it was a great short sale opportunity. So I shorted the stock because I thought that I could hold on and be safe. I shorted around $6 and was happy when the stock dropped to $5.50 – until a a Short squeeze came up (people covering their short to reap profits).
The short squeeze was horrible! The stock went up from $5.50 all the way up to $7.50! That’s a 36% difference! The stock closed are $7 (remember, I was short, so a rise in the stock price means a drop in my portfolio)
Because of the Pattern Day Trade rule (PDT) I couldn’t exit my position at all!! I had to hold on overnight, and risk even more loss from a morning gap up!!
Now, the ISSUE HERE IS NOT SHORT SELLING – remember, I was up intraday from $6 to $5.50 – but because of the Pattern Day Trade rule, I couldn’t exit my position and reap those profits (as of my writing this post, I’m praying it doesn’t gap up).
This taught me a 2 very valuable lessons.
1.) Don’t mess with the PDT rule and hope that you can beat the market, especially in volatility! 2.) Don’t hold onto a successful Short Sale in hopes of greedy profits!!
Now, my portfolio is up 20% because of taking the advice of Timothy Sykes and Tim Alerts, and in fact, this play was a result of Tim Sykes. If I had followed the rules, I would’ve actually made almost $400 on this trade if I could’ve exited with my position and followed his alerts – but because of the rule, I could’ve follow the RULES OF SHORT SELLING and exit.
This is a valuable life lesson in stock market dynamics and I will remember this FOREVER!
Currently, Tim is up 150% this year so far, and about 190% above the market so far in the last year! And he is getting results for those who FOLLOW HIS RULES!GET TIM ALERTS NOW!
So in all – I would say, I’m really not down emotionally on this trade too much, but it really taught me a lot! Thanks Tim! I owe you one man!
...on another note, watch this video… it’s pretty intense about the New World Order!
Timothy Sykes latest short stocking short selling Tim alerts winner is RBCAA, Republic Bancorp, Inc. that was found out for Tax Fraud.
Tim sent the alert out and it gained over 20% The stock dropped $2/share smack into the market close as thousands of loyal Citron subscribers–Andrew’s got a great track record–jumped in short!
Well, I know Tim’s timing is usually off, so I held overnight. I just covered at 19.44 for a 20.77% profit after commissions. Thanks Tim! -KT
I shorted @ 23.39 and covered at 22.50 near the close. Thanks Tim..!! -MG
I got out at $22.95. Made $110. Thanks Tim -Stussy
rode this one to $22.60 - made $120 on my SMALL position! not bad for 20 minutes -Jeremy
In at 23.56, out at 22.49 just before the bell. Not bad. Sorry it didn’t work out for you, Tim. -Akurt
Watch this video. Basically, I'm Jeremy Krakowski, 20 years old Lost alot of money in stocks before finding Timothy Sykes - after finding timothy sykes, I've made over 20% in the last 3 weeks! Watch this video!Go Here for Info about Timothy Sykes Tim Alerts
Insider trading is illegal for a reason. People can buy and sell all while having secret information about a stock rising or falling. It's called taking advantage of a system that is easy to manipulate.
Here's a story for you: imagine for a moment, knowing that Apple Computer was going to release the iCar and it was going to be the greatest thing in existance, but before they announced the iCar and it's low price of $299 for a full on electric powered car, Steve Jobs gave you a call and told you "Hey, we're going to announce the iCar and our stock will skyrocket - so buy as much as you can." Then You buy 1000 shares. The next day, the stock rises by 30% - then you get a phone call from Steve Jobs, and he tells you "The iCar is cancelled - sell if you want to profit" So you short sell 1000 shares of Appple while It's at it's peak, and profit all the way down.
Now what if you could do this for any company? That you could guarentee that you would profit from a stock? That your chances of profiting are 90% accurate!
Take this example - Say XYZ Paper Medical Company just made a press release that they will be releasing the biggest most intergalactic super most worldly phenomonal most amazing cure Obesity Ever that Guarentees Weight Loss and Already Have a Market Covered - and the Stock Shoots up from $1 to $8. However, what if you had a little birdy tell you that this is a bogus stock and that they have no such thing coming... What are the odds that stock is going to drop back down to $1? Who can say 110%?
That's where Short Selling comes in - You would go online or call your broker to borrow 10000 shares of that stock at $8 - now, say the stock then drops down to $1 - because she short sold the 10000 shares, your betting that the stock will DROP. So take the difference of $8 and $1 and do the math - $70,000 - that's your profit! Bam! Money in the bank.How the hell does this work you might ask? It's kind of like if a newspaper sells a subscription to the newspaper, but they don't actually have the newspaper printed yet. They take you money by selling, then they use that money to print the newspaper and in turn, keep the profit from the difference!
THIS IS BUSINESS AT IT's CORE!
Now, imagine you short sold AIG from $30 to $3 - you would keep all the difference between $3 and $30 as profit! Hello? Fannie Mae? Freddie Mac?
But isn't that unethical you might ask? OH HELL NO! Short selling keeps the market honest. If everyone only bought a stock, it would just shoot up, the sky's the limit - This is what happened in China, and this is why they are in a massive recession of over 50%! But by short selling, your betting a stock will go down, and in doing so, you create balance - AND you profit from a stock dropping!
What if you had someone constantly finding you real, solid profits from short selling with a 10 year track record of results?
What if every single trade they've made is logged and audited for proof?What if This person told when they personally buy and sell, and they are trading real money?
What if the track record was profitable 9 out of 10 times (yes, there are losses - that's life). What if this person has PROFITED over 190% above market averages in 2008???
What if you could have FREE access to this person's methodology?? This is what Timothy Sykes Offers! He has a proven 10 year track record of success, is right 9 out of 10 times in 2008, has profited over 190% above market averages, has every single trade tracked and audited, and has a free website with his personal advice on the market!!
Discover How To Profit From The Falling Stock Market By Short Selling! Go to Tim's website right now! Look around - read the blog posts - this guy is for real - Your not going to find another more honest, more hard working man in the stock market than Timothy Sykes. Tim does not give you a BS line of BULL about "oh, the trend looks good, but this stock now." No - that is sugarcoated BULL**** and that is a lottery ticket.
This is NOT A GET RICH QUICK SCHEME - this requires hard work and real results, and not "the big payout".If your looking for the big payout, you ARE chasing a fantasy - and FAILURE is awaiting you. But if you want to follow a proven system, with a proven track record of success, check out Timothy Sykes.Tim offers an alert service that I have personally profited over 20% from in the 2 weeks. As well, there are over 700 people who are faithfully following his alerts just this last month and have made money. Here are some of thier stories!
Hi Tim, I opened up a TOS account and it was funded on Sept 5 2008 with $15,000. it is now Sept 29th and it is $21,739. A whopping 45% increase in 24 days using your recommendations and info from the DVD’s to find my own picks. Rock on Tim ! and thanx for your noble effort in teaching people how to play their silly game.-Steve K
I started with $85,000 - I'm now at well over $150,000 in just 6 months! Pennystocking is where all my trading ideas and routines is derived from. It’s an excellent resource for any trader.-Tony Ellis
For a 21 year old to bank more than 5K in the last 3 months is insane when you consider back in Nov. 07 when I found Tim’s site I had a measly 4K sized account, today it stands at 24,094.60!!-Davey (College Student)
Started with $7665 - I've made 80% or $6124 profit in the last 2 months! Thanks Tim!-Adam Neiderhiser
Timothy Sykes Get's Results - This is a NO BS plan to make REAL MONEY in the stock market. He logs every trade that he makes on his Tim Alerts Website!
Tim also tracks his performance with Covestor.com which taps into his bank account and logs every trade that he makes, so there's no manipulation! He is currently #1 out of over 10,000 investors - if that doesn't say something about his performance I don't know what does! You can see these Timothy Sykes Results Here
So the question is, do you want to make a little? Or a lot? How much do you want to lose for ignorance?
When are you ready to step up and make a change?Are you going to just stand by and let the portfolio diminish, or just hope that your lottery ticket portfolio makes you money? Or you want a 90% guarenteed chance of making profits in the stock market? a 90% chance of high yield success.Then it's time for you to make a choice.
Are you going to keep doing what you've been doing for years, or will you step up and decide to make a change and actually make money in the stock market?If so, then go here RIGHT NOW
Insider trading is illegal for a reason. People can buy and sell all while having secret information about a stock rising or falling. It's called taking advantage of a system that is easy to manipulate.Here's a story for you: imagine for a moment, knowing that Apple Computer was going to release the iCar and it was going to be the greatest thing in existance, but before they announced the iCar and it's low price of $299 for a full on electric powered car, Steve Jobs gave you a call and told you "Hey, we're going to announce the iCar and our stock will skyrocket - so buy as much as you can." Then You buy 1000 shares. The next day, the stock rises by 30% - then you get a phone call from Steve Jobs, and he tells you "The iCar is cancelled - sell if you want to profit" So you short sell 1000 shares of Appple while It's at it's peak, and profit all the way down.Now what if you could do this for any company? That you could guarentee that you would profit from a stock? That your chances of profiting are 90% accurate!Take this example - Say XYZ Paper Medical Company just made a press release that they will be releasing the biggest most intergalactic super most worldly phenomonal most amazing cure Obesity Ever that Guarentees Weight Loss and Already Have a Market Covered - and the Stock Shoots up from $1 to $8. However, what if you had a little birdy tell you that this is a bogus stock and that they have no such thing coming... What are the odds that stock is going to drop back down to $1? Who can say 110%?That's where Short Selling comes in - You would go online or call your broker to borrow 10000 shares of that stock at $8 - now, say the stock then drops down to $1 - because she short sold the 10000 shares, your betting that the stock will DROP. So take the difference of $8 and $1 and do the math - $70,000 - that's your profit! Bam! Money in the bank.How the hell does this work you might ask? It's kind of like if a newspaper sells a subscription to the newspaper, but they don't actually have the newspaper printed yet. They take you money by selling, then they use that money to print the newspaper and in turn, keep the profit from the difference!THIS IS BUSINESS AT IT's CORE!Now, imagine you short sold AIG from $30 to $3 - you would keep all the difference between $3 and $30 as profit! Hello? Fannie Mae? Freddie Mac?But isn't that unethical you might ask? OH HELL NO! Short selling keeps the market honest. If everyone only bought a stock, it would just shoot up, the sky's the limit - This is what happened in China, and this is why they are in a massive recession of over 50%! But by short selling, your betting a stock will go down, and in doing so, you create balance - AND you profit from a stock dropping!What if you had someone constantly finding you real, solid profits from short selling with a 10 year track record of results?What if every single trade they've made is logged and audited for proof?What if This person told when they personally buy and sell, and they are trading real money?What if the track record was profitable 9 out of 10 times (yes, there are losses - that's life). What if this person has PROFITED over 190% above market averages in 2008???What if you could have FREE access to this person's methodology??This is what Timothy Sykes Offers! He has a proven 10 year track record of success, is right 9 out of 10 times in 2008, has profited over 190% above market averages, has every single trade tracked and audited, and has a free website with his personal advice on the market!!Discover How To Profit From The Falling Stock Market By Short Selling! Go to Tim's website right now! Look around - read the blog posts - this guy is for real - Your not going to find another more honest, more hard working man in the stock market than Timothy Sykes. Tim does not give you a BS line of BULL about "oh, the trend looks good, but this stock now." No - that is sugarcoated BULL**** and that is a lottery ticket.This is NOT A GET RICH QUICK SCHEME - this requires hard work and real results, and not "the big payout".If your looking for the big payout, you ARE chasing a fantasy - and FAILURE is awaiting you. But if you want to follow a proven system, with a proven track record of success, check out Timothy Sykes.Tim offers an alert service that I have personally profited over 20% from in the 2 weeks. As well, there are over 700 people who are faithfully following his alerts just this last month and have made money. Here are some of thier stories!Hi Tim, I opened up a TOS account and it was funded on Sept 5 2008 with $15,000. it is now Sept 29th and it is $21,739. A whopping 45% increase in 24 days using your recommendations and info from the DVD’s to find my own picks. Rock on Tim ! and thanx for your noble effort in teaching people how to play their silly game.-Steve KI started with $85,000 - I'm now at well over $150,000 in just 6 months! Pennystocking is where all my trading ideas and routines is derived from. It’s an excellent resource for any trader.-Tony EllisFor a 21 year old to bank more than 5K in the last 3 months is insane when you consider back in Nov. 07 when I found Tim’s site I had a measly 4K sized account, today it stands at 24,094.60!!-Davey (College Student)Started with $7665 - I've made 80% or $6124 profit in the last 2 months! Thanks Tim!-Adam NeiderhiserTimothy Sykes Get's Results - This is a NO BS plan to make REAL MONEY in the stock market. He logs every trade that he makes on his Tim Alerts Website!Tim also tracks his performance with Covestor.com which taps into his bank account and logs every trade that he makes, so there's no manipulation! He is currently #1 out of over 10,000 investors - if that doesn't say something about his performance I don't know what does! You can see these Timothy Sykes Results HereSo the question is, do you want to make a little? Or a lot? How much do you want to lose for ignorance? When are you ready to step up and make a change?Are you going to just stand by and let the portfolio diminish, or just hope that your lottery ticket portfolio makes you money? Or you want a 90% guarenteed chance of making profits in the stock market? a 90% chance of high yield success.Then it's time for you to make a choice. Are you going to keep doing what you've been doing for years, or will you step up and decide to make a change and actually make money in the stock market?If so, then go here RIGHT NOW
