How I Trade Double Tops - YouTube

- Is this actually turned into a perfect double top.

I still had, I made like two or three cents a share

because it did get close to breaking out,

but when it did not break out

I did not hold in hope.

(upbeat music)

I wanted the summers to be dead

but the past few years,

like it just hasn't.

There's just been so many plays.

I think due to, like, this overall bull market.

You just, in social media

and the fact that you can send information

so much quicker than in years past.

There's just so much junk spiking all the time.

I want a gigantic crash.

I would love for the Stock Market

to get annihilated.

And I could take five years off

and I could write a book that I've always wanted to.

But while the bull market is here

and while the opportunities are here

I take advantage of it.

Even though I'm going to Mykonos,

I'm still gonna be trading.

I'm gonna be in Rome, I'm gonna be in Venice,

I'm gonna be all over Europe the next few weeks.

I freaking love it

because the Stock Market

opens at 3:30/4:30 in the afternoon.

I sleep till noon.

(beep) I'm out till one or two AM.

I mean, it's beautiful.

- But you know, my answer is, you know,

especially the last three or four years

we have not seen that summer lull.

Especially, since where I say, lik, Low Flow Mania

really began was kinda late 2015/2016

and since then summers have,

in my opinion, summers have been almost busier

than the winter months at times.

- Well, a lot of people want to try to plan.

Oh, I'm gonna take Thursday off from work so I can trade.

And that kind of puts you in this mindset

where you have to trade on a certain day.

Instead, the mindset that I have is that,

this is counterintuitive, but it works,

I'm a retired trader.

Okay, I don't need to trade.

Right now I have zero positions.

I don't have to trade, I don't want to trade.

I'm traveling, I'm enjoying myself.

But I will come out of retirement

if there's a play good enough.

And that same kind of like weird thing

where I don't have to trade

instead of I'm taking a day of specifically to trade,

that gives me more patience to wait for the best plays.

Sometimes I miss a play, you know, being overly patient.

But I would rather you guys miss plays

and under trade than over trade,

which is far too many people.

- See actually, that's the perfect philosophy.

And I share the same philosophy.

I mean, I traded with a business.

I learned Tim's method for five/six years.

I had a business, I had kids,

ten thousand customers, 20 employees.

Busy, busy, busy.

But I'm hoping, okay, if you're here at the Trader's Expo,

well welcome, but I hope you didn't quit your job yesterday

and you're gonna start day trading today, okay.

So, hopefully you've got a job,

you've got school, you've got family.

You've gotta treat it the same way.

I mean, you gotta be very, very discretionary

and only trade the best settlements.

- And I also want to bring up,

since TTCM is such a perfect breakout,

you know I don't want you to think

that every breakout is gonna be that perfect.

Let's pull up, KBLB,

which is another penny stock that's run the past few months.

- Which they make, by the way.

- Spider silk - Bullet-proof spider silk.

- Spider silk.

They have all these millions of spiders spinning silk.

It sounds like science fiction,

but they actually have a partnership with Polartec.

The Polartec CEO said this is amazing material.

Who knows if it's gonna work or not?

But this one I actually went for the breakout

just like TTCM, but this one's stuffed.

And you can see it,

this actually turned into a perfect double top.

I still had, I made like two or three cents a share,

because it did get close to breaking out.

But when it did not break out, I did not hold in hope.

I did not say spider silk is the future.

I did not try to rationalize.

I accepted that that was a potential top.

- And see, this is a point that Tim made last night

and I totally agree is,

the great thing about these,

again we're primarily all on these,

but we know they're jokes.

We know they're sketchy, and that, the beauty of that,

when you heard us say it last night,

you heard us say it today,

knowing they will fail, you gotta.

You're in this mindset, if it doesn't work you're just out

and you move on.

So be skeptical, you don't have to short them.

You just know, that when that breakout,

when that double top fails, I mean, you are out.

There's no questions.

- Although you could short this one.

And I know a lot of people who did short it.

Because again, if you know that these stocks

are gonna crash and fail eventually,

and you start to see a potential double top

or a potential triple top,

you can kind of say wait a minute,

logic tells me this could be the end.

And then this stock dropped 50%.

Also, pull up RAFA. R-A-F-A.

This is another one that I was buying.

And I thought this was gonna be a big breakout.

- Very similar pattern-

- [Tim Sykes] Instead, it's a perfect double top.

So, you never know if it's gonna be

a double top or a breakout.

TTCM I sold way too soon.

RAFA, I bought this one and sold it into strength.

Did not look back.

I actually sold this right at the top.

This did breakout. I don't know if you can zoom in.

- Yep.

- This one did breakout by like three cents.

So technically, it was a breakout,

but it wasn't a convincing breakout.

That's the difference with penny stocks.

It's not, like, technical indicators,

like oh we're looking at Amazon at 2,033

and the breakout is 2,034.

And it's a very exact science.

- Did you buy this late day then?

- [Tim Sykes] Yeah, I bought this late day.

- So, again, now you know,

this is another stock that's up big on a day.

Notice that kind of gray line is the market close.

Tim buys this and closes

and you can see it gapped up five cents a share which well-

- This actually, it didn't gap up.

It actually opened flat

but then it spiked for two or three minutes

and I sold into the spiking because this was a weekend play.

People learned about this over the weekend.

There's a lot of lazy people.

Forget about just the degenerate gamblers,

there's a lot of lazy people with penny stocks.

They read about news, they think about stories,

and they read it over the weekend.

They read it at night.

And they put in their market orders

at the open the next day.

This is what I love.

You know, I told you guys not to use market orders,

please don't tell anybody else.

We need all those idiots using market orders,

it pushes these stocks up to ridiculous levels.

So, this is like Fight Club,

you know, don't talk about Fight Club outside of this room.

We want everyone else using market orders.

- Hey, Tim Sykes, Millionaire Mentor and Trader.

Thank you for watching my videos.

I hope that they help you.

I want to share everything that I've learned over the years.

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