How did I celebrate my big win trading CytoDyn (OTCQB: CYDY) on June 30? By watching {an incredible} Tim Grittani webinar.
LOL damnnnnnnnn @kroyrunner89 just revealed in his https://t.co/EcfUM63rtt webinar {he} got {yet another} short in on $CYDY in the afternoon {to complete} +$272,000 today, if {it doesn’t} inspire you {to review} hard you’re lost. Funny people say you can’t short these promoted stocks LOL
– Timothy Sykes (@timothysykes) June 30, 2020
The crazy thing? Grittani had just had his biggest win ever – $272,000* – on CYDY! How did he celebrate? By offering {to provide} a webinar for Trading Challenge students {to go over} the trade. All {I possibly could} think was, “{Are you currently} SERIOUS? YES!”
({Please be aware}: My results, {combined with the|together with the} {outcomes of} my top students are {definately not} typical. Individual results {will change}. Most traders {lose cash}. My top students and {I’ve} {the advantage of} {a long time} of {effort} and dedication under our belts. Trading is inherently risky. Do your {homework} {rather than} risk {a lot more than} {it is possible to} afford {to reduce}.)
By the way…
Trading Challenge students get two to four live webinars {weekly}. Tim Grittani, Michael Goode, Tim Lento, Mark Croock, and I share knowledge and experience. {Continue reading} – {by the end} {of the} post, I’ll {add a} {connect to} apply.
{When} Grittani started his webinar, {I did so} what {worthwhile} trading student would do…
I took notes. And I’m sharing them with you. You’re welcome. Bookmark {this site} and {make reference to} it often.
Here we go…
Table of Contents
15 Lessons From {an incredible} Tim Grittani Webinar
Lesson 1: Don’t Break {YOUR PERSONAL} Rules
Grittani {discussed} how he tried to go long on June 19 in anticipation of the breakout. {The issue}? {He’s got} a rule against buying in anticipation of a breakout. He {wished to} trade the breakout and the stock had consolidated for months…
By breaking {their own} rule he {finished up} {going for a} small loss. Have rules and {adhere to} them. I trade {with one of these} rules.
Lesson 2: Watch, Wait, and Prepare
Grittani said he was watching CYDY {back} April {and could}. It didn’t do what he wanted. {Instead of} get frustrated, he set an alert and took it {from} his watchlist. {He then} waited for {the purchase price} alert. Once CYDY hit {a particular} price, {it had been} back on his watchlist.
{That is} super important. {It is possible to} spend {lots of time} watching a stock at {the trouble} of missing plays {the marketplace} gives you. {That may} wear you down. Grittani {would prefer to} wait {before} stock meets his criteria. Like {I usually} say, {await} the pattern {to come quickly to} you.
Lesson 3: Don’t Chase
{Once the} breakout happened, Grittani didn’t chase. He didn’t {have confidence in} the stock. Here’s what he thought when CYDY finally broke out…
“Hopefully it gets vertical {therefore i} can short it. {It could} run without me.”
Then, on {the next} day of the breakout, {there is} {suprisingly low} volatility. Again, Grittani waited patiently. On day three, it still wasn’t that extended. He said in his webinar that the move from the breakout {degree of} $3.80 to $5 still wasn’t enough.
So {though it} was five green days in a row, {there is} no big overextension. He didn’t {visit a} huge downside … yet.
Lesson 4: Be {Ready to} {Ensure that you} Tweak
Finally, on Friday, June 26, things {found}. CYDY had {a large} parabolic {move ahead} June 25 and 26. So Grittani took {several} stabs at the short late in {your day}.
His reasoning was {that whenever} CYDY tanked in April, {it had been} a late-day ‘pull the plug’ situation. So {in order to avoid} missing {the chance}, he was {ready to} test. He lost {several} thousand dollars {along the way}.
Then came more testing on Monday, June 29. {For me personally}, {that is} interesting. {That is} arguably {the very best} penny stock trader {on the planet|on earth}. How did he {plan} the coming opportunity? By testing and tweaking.
Newbies and veteran traders alike, heed this lesson well.
What did he test?
- {Another} broker for OTCs. He’d heard {a particular} route was {on} Cobra. He already had {a merchant account} with Cobra, but {he previously} {make it possible for} OTC trading on his {take into account} this trade. (For the record, {I take advantage of} these brokers.)
- New routes. {Not only} {the precise} route he’d {found out about} – he methodically tested every route. That’s how meticulous he was. His goal was {for the best} route so he could {make best use of} {the chance}.
- {The way the} stock played. Grittani {wished to} {get yourself a} feel {for this} and was {ready to} take small losses {to take action}.
- Executions. How fast do orders get filled?
Lesson 5: Establish {the proper} Mindset
{There are some} lessons here – {give consideration}.
Avoid FOMO
Your trading mindset {is vital|is essential}. Grittani said {many times} {he} experienced FOMO with CYDY. He also overtraded the stock, especially on June 29. He was OK with some losses that day, but he could’ve avoided others.
Stubbornness {Can result in} Crisis Management
{Despite the fact that} Grittani was wrong {many times}, he didn’t get stubborn. {Once the} stock kept {increasing}, he cut losses quickly and waited. As he says in the webinar…
“Stubbornness {can result in} crisis management.”
The Catastrophic Implications of Hold and Hope
I say {everything} {enough time}: hold and hope {isn’t} a strategy. {In the event that you} watch the Tim Grittani webinar, you’ll see he takes it further. He discusses why he cut losses on June 26 and 29. He {raised} big losses from {days gone by} and how he learned {from their website}.
{Imagine if} you’re wrong and hold and hope? Catastrophe could strike. Since Grittani was {looking forward to} {the chance} to short CYDY, he kept testing. But he didn’t {stay static in} a losing position. {Imagine if} it {converted into} {a large} short squeeze and {visited} $12 or $15? {That might be} {an enormous} loss {taking into consideration the} size Grittani {designed to} trade. Keep reading…
Lesson 6: Even Veteran Traders Make Mistakes
Grittani {discussed} taking a {large amount of} “paper cuts” (making conscious decisions {to check}) as he overtraded {leading} side. He said he made the rookie mistake of chasing weakness for shorts and covering into strength.
{Simultaneously}, he was testing and tweaking. He was {looking for} {the very best} route and probing the stock. So he was OK with the losses. If anything, the losses {contributed to} the big win.* But he didn’t trade it perfectly.
If you’re in the Trading Challenge, this Tim Grittani webinar {is really a} must-watch. It’s amazing {to listen to} him explain his {way of thinking}.
{How many other} mistakes did Grittani mention? {Following the} big panic, the stock bounced. That’s where I played it. Grittani also went long on the bounce. But he got spooked and cut early. It’s not {he} lost, he just didn’t get {just as much} {from it} as he’d hoped.
Grittani’s other mistake – {in accordance with} him – is {he} wanted perfection. {As though} making $272,000 {using one} stock {in a single} day isn’t perfect enough.*
Lesson 7: From the Tim Grittani Webinar: Small Losses Are Acceptable
{Particularly when} your trading plan {carries a} willingness to take paper cuts. {This way}, Grittani could continue taking big position sizes.
“Cut losses quickly {so that you can} {keep coming back} and crush it,” he said in the webinar.
He also covered position size and the proportion of losses versus the win. What do {After all}? Check it out…
He took roughly $40,000 in losses on June 29 while testing CYDY. He admitted he overtraded and could’ve avoided the afternoon losses. But he was OK with the losses … He was {finding your way through} the win . His heart was set {onto it}. He saw the potential.
Let’s put it into perspective. {Can you} be happy losing $40 testing and tweaking a stock {1 day} knowing {the very next day} {you can} make $272?
{Think about} losing $400 {1 day} {to create} $2,720 {the very next day}? Or losing $4,000 {to create} $27,200 {the next} day?
Grittani was fine with taking what many would {look at a} huge loss {to get ready}. Why? {Since it} was {befitting} his account and position size.
Remember, he made nothing in his first nine months of trading. Then {as time passes}, {he previously} small wins and kept his losses smaller. {Through the years}, he’s scaled up.
{It is a} key concept.
Grittani said his losses in the afternoon on June 29 – {your day} before his big win – were probably avoidable. In hindsight, he wishes he hadn’t taken them. But he showed amazing poise in getting {out from the|from the} stock realizing he was wrong. It wasn’t time.
So while he says he could’ve avoided {a few of the} paper cuts, he also did {an excellent} job avoiding a catastrophe. If he’d held and the stock gapped up {the very next day} he might’ve lost the confidence {to remain} {onto it} for the big win.
Lesson 9: Study History
I say {that one} {again and again}, so it’s awesome {to listen to} about Grittani studying past plays {to get ready} for CYDY. He specifically mentioned CVSI from 2018. But he also {discussed} other OTC morning panics like FNMA, when he made $215,000 {in a single} day.*
{Thinking about} study charts and trades from {days gone by}? {So when} I say “past,” I’m {not only} {discussing} last month or {this past year}, but even {a decade} ago – {as well as} longer. How is this still relevant?
Because even {the very best} penny stock trader {on the planet} does it {the night time} before {a large} win! {Listed below are} three simple reasons {you need to} study {days gone by}.
- {It can help} you recognize opportunities.
- You {study from} your mistakes. If you’re in the Trading Challenge {it is possible to} {study from} the mistakes of others, too.
- {It can help} {you retain} your losses small. {That may} sound counterintuitive but {consider it}. {In the event that you} study charts and trades from {days gone by} with {exactly the same} pattern, {it is possible to} {understand how} the pattern should play out. {Which means} {it is possible to} recognize when it’s {no longer working} {and obtain} out.
Lesson 10: {Adhere to} Your Trading Plan
Grittani did {a short} Q&A after his CYDY trade recap. {It had been} amazing {to listen to} him {lay out} his rules {and in addition} explain when he broke them {so when} he stuck {in their mind}.
Two rules about his trading plan that I love….
First, don’t {increase} losers. Grittani doesn’t {enter} the average-up mentality {of several} short sellers. One Trading Challenge student asked about his re-short {following the} bounce, which went against him {initially}. {Even though} he scaled {in to the} position {once the} trade finally went his way, he didn’t {enhance the} loser.
He also {discussed} not {increasing} his position outside his plan. {He previously} {an obvious} trading plan. So {despite the fact that} he could’ve potentially made {additional money}, he stuck to his plan. That {sort of} trading discipline is {section of} {why is} Tim Grittani so successful.
{That leads} to…
Lesson 11: You Don’t {Need to be} Perfect {to create} {A LOT OF MONEY}
Tim Grittani’s win rate is roughly 67%. {Which means} he loses one-third {of that time period}. And he’s made {a lot more than} double what I’ve {created from} trading {in two} {enough time}.
Grittani said this in the Trading Challenge chat room on April 20, 2020:
“Trading {is approximately} having {a couple of things}: strong conviction that the move will go {on your side}, and {an obvious} risk level {to utilize} {in the event} you’re wrong. It’s not about calling it right {each and every time|each time}. Have {an idea} and {stay with it} {and when} you’re wrong {generally} then you {have to} examine the edge {you imagine} you have and reassess.”
{Taking into consideration the} {amount of} paper cuts Tim took before his big win, {you need to} heed his advice. It’s so cool {to listen to} him {discuss} it so openly. Transparency rocks.
Lesson 12: OTCs Trade {UNIQUE OF} Listed Stocks
{That is} {one more thing} I teach about trading {very cheap stocks}. {So that it} was good {to listen to} {all of the} Q&A {about this} in the recent Tim Grittani webinar. Access my FREE penny stock guide here.
Level 2 {IS SIMPLER} {to learn}
For the morning panic pattern, OTCs are easier. {As the} chart isn’t as helpful, it’s {better to|simpler to} read level 2 action. So it’s {better to|simpler to} {start to see the} turns. {It requires} experience, but that’s why you study. Get my “Learn Level 2” DVD here.
Volume and Liquidity {ARE ESSENTIAL}
{One more thing} about OTCs {which} pattern – {there has to be} enough volume. Trading big positions like Grittani does {is} possible with enough volume. Don’t get stuck {within an} illiquid stock.
{THE TYPE} of the Panic {DIFFERS}
{In case a} listed stock starts {to go} that fast, it gets halted. But OTCs don’t have volatility halts. {Once the} stop losses get {applied for} and the big sell-off happens, it’s {an engineering marvel}.
Volatility {is vital|is essential} to my trading strategies. Access my no-cost “Volatility Survival Guide” here.
Here’s another beautiful thing…
Lesson 13: Long OR Short – {You can} Choose
One reason {that is} {the best} pattern is that it’s so predictable. It’s possible to trade long, short, or both. Grittani took the big short, then went long on the bounce, then re-shorted the fade.
He {could} take profits {in various} ways. {I would recommend} you {figure out how to} dip-buy the panic first. But {I really like} hearing about students who profit trading {both} panic and the bounce.
Lesson 14: Don’t Trade Random Stocks – {Search for} Specific Criteria
Trading Challenge students, watch the Tim Grittani webinar again. Notice how he {searches for} specific criteria to {have a} big position. {So when} he’s wrong, he gets out fast.
What he doesn’t do is throw size at something to see what sticks. That {sort of} trading is for degenerate gamblers. {Know very well what} you’re trading {and just why}. {In the event that you} don’t know or don’t have a trading plan, you {haven’t any} business being in the trade. Period. Be meticulous!
Lesson 15: Build Your Knowledge Account
I was {pleased to} hear Grittani say this {by the end} of the webinar. Don’t worry {in the event that you} missed the CYDY panic and bounce. And don’t worry {in the event that you} took a loss. {Study from} it. Add it to your knowledge account.
Grittani said he {had a need to} see this pattern play out {several times} before he {first got it}. {A lot more} amazing, {this is} his best trade. It took him nearly {a decade} {to get this done} well {with this} {sort of} play.
The Tim Grittani Webinar Wrap
What {an incredible} webinar. I’m grateful for Tim Grittani. {Just how many} people would {provide a} webinar after their single biggest trade making $272,000 {in a single} day? {Another|Just one more} reason {I believe} we have {the very best} trading community anywhere.
{Do you want to} dedicate {you to ultimately} trading for {a decade} like Tim Grittani has? {A very important factor} I’ve noticed with all my top students is their {degree of} dedication. {The quantity of} time they {placed into} learning shows.
Resources {and additional} Education
For {a simple} but solid foundation on my strategies, read “{THE ENTIRE} Penny Stock Course.” My student Jamil organized everything into an easy-to-read book. Every penny stock trader should read it.
{Have a look at} Tim Grittani’s DVD “Trading Tickers” here.
{Find out more about} {the best} pattern, the morning panic:
{And when} {you would like to|you need to|you wish to} {turn into a} self-sufficient trader…
The Trading Challenge
The Trading Challenge {may be the} most comprehensive and in-depth trading education I offer. But fair warning, not everyone gets accepted. Only apply if you’re serious and {prepared to} put in {the task}. {Make an application for} the Trading Challenge here.
What {do you consider} of the lessons {out of this} Tim Grittani webinar? Want more posts {such as this}? Comment below, {I enjoy} hear from all my readers!