Notes for Chat with Traders, Episode 10

Added on by C. Maoxian.

Episode 10 ... Tim Grittani (52:48)

  • Finance major at Marquette
  • Learned that he didn't like finance
  • Was into poker and sports betting in high school
  • Opened account with ShareBuilder(?)
  • Started randomly buying and selling 30 cent stocks
  • Lost half his account within a couple of weeks
  • Joined Tim Sykes' "Silver Package"
  • Blindly followed trade alerts from "gurus"
  • Had emotional trouble once money was on the line
  • Hiding his P&L helped him become less emotional
  • Went full time after six months of struggle, $1,300 in the hole
  • November 2011 (?) back to breakeven
  • Made a new mistake, learned something new every day for six months
  • Learned to focus on a couple main set-ups
  1. OTC Pump and Dumps
  2. Buying multi-week or 52-week breakouts
  • Frustrated with listed stocks because too many factors affecting stocks
  • OTC stocks trade in a world of their own
  • Learned to understand promotions run on OTC market
  • Promoters have email lists with thousands of people on them
  • Understood all the connected promoter websites, subscribed to all of them
  • Would try to act on emails he received as fast as possible, beat the crowd on the spike up
  • Would also buy breaks of daily highs on the pumped stock
  • Fine line with fraud regarding stock promotions
  • Learned liquidity all important
  • Began short selling promotions instead of buying them
  • OTC promotions would get halted and would re-open weeks later down dramatically
  • OTC market dead until marijuana stocks ran in 2014
  • Began short selling listed stocks in the same way he shorted OTC promotions
  • When he sees patterns forming, he knows what to do
  • His edge is his experience
  • Spends 15 minutes every night putting together the next day's watchlist
  • Lost $290,000 on a single trade, LAKE, 9.90 entry, October 2014 (chart below)
  • Refused to cut his losses when mis-timed his entries, would always look to add higher
  • Before LAKE, trades would always work out for him in the end, developed a bad habit
  • LAKE experience taught him to cut losses
  • You need the right broker for your trading strategy
  • SpeedTrader best to buy OTC promotions back then
  • Only trade liquid, volatile stocks
  • Identify and focus on your niche
  • Traded only two OTC set-ups (new promotions, breakouts), nothing else
  • Trade charts and price action only (not hype)
  • Everyone knows OTC stocks are garbage, but just as many listed stocks are also garbage
  • Never hold and hope
  • Cut losses intelligently, not necessarily quickly
  • Base stops on chart, not some preconceived dollar or percentage amount
  • Figure your size from your risk level ... dollar risk is constant
  • "Trade the ticker, not the company" -- a Nate Michaud saying
  • Couldn't live without a market scanner -- how he finds his plays
  • Top percent gainers with dollar volume requirements is his main scan
  • Hasn't read any trading books, but interested in trading psychology books most
  • Don't waste your time following trade alerts or mimicking trades
  • Just make your own trades, win or lose, figure things out on your own
  • Be mindful about volume and liquidity -- avoid thin stocks
  • Blog:
  • Twitter: @KroyRunner89
2018-02-06_12-10-57 grittani.jpg