Update on Tim’s Stock Tip
If you watched the Lemongrass edition of Dot Com Pho, you would have seen Timothy Sykes recommend a short sale of Zynex Inc. (ZYXI). When Tim made the recommendation, the stock was trading at around $4.50 and was about to break support.
Tim thought the stock could drop to $2.50, giving you a nice $2 gain (in a short sell, you make money when the price goes down). A check of the Zynex today shows the stock is trading at $2.00. Had you taken Tim’s advice, you would have made a nice 55% return.
Keep in mind that selling short carries a lot more risk than buying long and you shouldn’t go into it unless you have some play money. Tim’s play money was his $12K Bar Mitzvah gift money. His parents thought he would lose it all but he turned it into $1.65 million and has been going strong since.
Yes, you can make money by watching Dot Com Pho. However, you can probably make more if you attend a live Dot Com Pho. Follow me on Twitter to find out the location for this Saturday’s Dot Com Pho.
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- Posted in Investing, Make Money Online
- 51 comments what's your take?
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Buying under it’s true value and selling it when it’s overvalued. Been learning on stocks recently. Great post John.. Tim is intelligent
That;s a nice return on $12K. I’d like to get that kind of ROI on my PPC campaigns.
If you have watched tims cd’s – all im gonna say is watch for Supernova’s – ive done really well with that.. its like taking money from a chump!
That guy is giving some serious tips but too bad I don’t trade in canadian markets!
Tim does know that it was illegal of him to invest in stocks when he was 13-15 (Bar Mitzvah), right?
It’s obvious he can’t trade at that age, he must have used someone else’s account!
If someone who is successful at the stock market tells you that you should invest in something. You should probably listen to them.
Hmm
Not always. 
One of my friend she was a lady from germany and she had 50K to invest in stocks. Yesterday while I was talking to her, she was so broke that she had to sell her puppies to raise 100 for car repair. AND yes she has a 20 years stocks market experience.
Dang, that’s a sad story!
No wonder someone once said:”Stock market can get you riches but once it falls it can badly break you back”
You’re right steve..
I don’t get. What’s a short sell? I thought the point was to buy low, sell high? Not the other way round!
Well, a short sell is when you predict the stock will drop. Selling short, though, is selling something you don’t have, hence you must be either pretty sure in what you’re doing or have some play money, as John already mentioned in the post.
A short sell requires that you reserve shares first as well. Then you sell them at the current price and when the price drops, you “buy to cover”. So it’s a buy low sell high but in reverse.
Also, if you don’t understand what short selling it, then it’s best to stay away. Or learn it before trying.
But how much time do you have in buying it back, here you have to buy it on the same day you sell it!
Basically what you are doing when you “short sell” is borrow a share of stock from someone else that is trading at say $50… you think that the stock will drop, to say $30, within a certain period of time. If you happen to be right, then you can actually purchase the share of stock at $30 and replace that share with the one you borrowed at $50. You then just made a $20 profit for each share you sold short. Like John said, it might be best to stay away. It is a good way to lose big.
Wow that’s great! I never would have taken that advice though. Never trust anyone with shorts (hehe).
I have heard promising things about Timothy and read useful information on his site. He definitely knows what he is talking about
its good advice…. will wait for a Sponsor to pay 10k to invest
This was a great advice, especeally for the ones who invested
Wow, I need me some barmitzvah money. 12K is a pretty nice birthday gift
Nice job Tim
Damn right…
12k is like all my birthday money combined x 10 to the 100th power.
I’m with you on that one. I’m in my 30s and I think if I combined all my birthday cash over the years it wouldn’t total $12k.
I think it is a bit of exaggeration!
Its not too crazy to get that much if you invite EVERY relative and friend you know to it like he did.
Also it was not illegal what he did. He had a custodial account.
I have been interested in buying stocks for the longest. The stock market crash has no effect on me
The stock market has not crashed, and if it did, I can promise you that it will affect you. On the other hand, there is a recession right now and it may very well be the time to start investing for the long run. I would not try to make a quick dollar in this shaky market.
Tim is such a character…but hey, he knows what he’s doing..
If I recall his fund collapsed with losses. I wouldn’t say he built it up to 1.65million and “going strong ever since” is accurate.
From wikipedia:
“Often called the “The Startup”, In early 2003, Sykes founded Cilantro Fund Management LLC, a hedge fund based in New York City. The fund was ranked number one Short Bias Hedge Fund for 2003-2006 by Barclays before closing in late 2007 after losing roughly one third of its value due to an illiquid investment in Cygnus E Transactions (CYGT.PK).”
Yea…strong…
Maybe you should check out what he is doing now as he went back to his roots and has 150%+ gain this year starting again with only $12k and is now over $30k. His strategies work when they are followed. He admits his CYGT trade was poor as he didn’t heed his own risk. Nobody is perfect, even the exalted Jim Cramer is down 30% this year.
You forgot to add that not everyone can do this and not everyone would be able to risk the money
-Mike
Just like John Reese’s lifestyle pics, aspiring to have a fund to risk in high-risk ventures is a goal.
Reminds me when years ago, a girl (20-22 years old) I knew who came from money, and some aunt or so provided an inheritance of $20K, which she just banked it. She lived with her grandparents and they provided everything plus a new vehicle every year. That boggled my mind that a windfall would be able to just be put into the bank, not be spent on needs and wants. Now, I pursue that mindset, put it away and build it.
I am out of stock now till markets settle down.
Join me and play the lottery instead of the stock market.
It’s an excellent time to get in actually.
I am more of a long term investor. I can tolerate less gains from a stock but I cannot tolerate the losses in short selling. Plus monitoring the stocks takes time. It isn’t just like check the ticker every now and then. It needs research and thoughts to be put into it.
Wow, nobody here really understands what short selling is. It isn’t any more risky than buying a stock when it’s low and hoping it goes up. In fact in a lot of ways it can be easier to spot when a big downtrend is going to happen rather than spotting a bottom to buy.
Just the fact that going short offers limited gains while exposing you to unlimited loses makes it more risky than going long.
For all your short selling newbies out there – here’s a 101 tutorial about short selling: http://www.pallian.com/2008/09/24/how-to-short-a-stock/
Thanks Pallian for the tut. I need that, I am so clueless about this short selling stuff.
ya i see a lot of people shorting siri radio and making some good money
but it is tricky as you say just becauful
later
jim
http://www.mydisplaycase.blogspot.com
its better to stay away from markets during this financial crisis.he is lucky
If someone who is successful at the stock market tells you that you should invest in something. You should probably listen to them. Don’t you?
Short selling isn’t worth it unless you have enough money and shares to make it worthwhile . Timothy did sound like he knew what he was talking about, I’m looking forward to hear more tips from him on future dot com phos.
BE VERY CAREFUL with advice like this. A quick check of nasdaq.com and otcbb.com shows that ZYXI is a small caps stock, which are very easily manipulated and considered very high risk! Stick to nasdaq stocks unless you know what you’re doing.
Don’t always listen to other peoples opinion, do lots of research before jumping in. I was @ dinner a few years ago, where a guy was raving about his stock the company had given him and how well it was doing and that every one should buy, it turned out he was trying to run up the price so he could get out, 6 months later the stock was worth half the price! do your home work.
I am out of stock now till markets settle down.
BE CAREFUL WITH stuff like this – otc stocks EASY to manipulate UP and down
want a nice pick for this market – buy some DIA $96 calls today, Dow Jones is going to rally 1000 points in the next week