Quote from gaj:
quick summary:
-> he trades pink sheet stocks. you know, the market where quotes aren't guaranteed to be filled, shorts are insanely difficult without the right brokerages. so in some regards, for others, it's similar to paper trading because they can't get the same fills even if they tried.
in fact, his latest list of trades has 20 trades. 11 of them are pink sheet stocks. the rest of the stocks, the legit names - have floats of 4mm, 7mm, 6mm, 12mm, and not available (according to yahoo finance).
general strategies for marketers who want to generate subscriptions:
-> don't trade a lot. goal is NOT to make tons of money, but to have "right" trades.
-> take credit for stocks that have lots of movement AFTER you exit, and even claim you're not that good a trader as your students. that way, you get all the "reward" of a huge move without the risk of it damaging your p&l.
-> say things about how much more money you'd have made if you took on a large position, but you're a scaredy-cat.
-> after you've gotten a bunch of subscribers, your alerts will become self-fulfilling. you get in at the price, and then lots of others lift the offer (or hit the bid) all at once. if it's CSCO, it won't affect the price much. if it's a small-cap or micro cap, you've already got yourself a profitable position. in fact, you can make the excuse 15 minutes later that the trade went so well for you, you can't turn down a quick profit, and get out.
-> many of his DVDs have 3/4 or more of virtually identical information, which is the tim sykes story.
i don't follow him anymore (this was the first time i went to his website, a cached version from a couple days ago, in i have no idea how long), but used to follow what he did so i could explain to others the fallacies in some of his trading materials.
btw, he's gone back on a bunch of his initial stated claims for what his site would be, but that shouldn't come as a surprise to anyone on ET.
