TRADING CHECKLIST FOR TIM’S STRATEGY
§ NEED PRICE ACTION AND CATALYST
§ WAIT FOR PERFECT PATTERNS, LET THE PATTERN PLAY OUT
§ CUT LOSSES QUICKLY
§ Key time to buy/sell is first and last hours
§ What are the catalyst and the float?
§ Always plan entry and exit points ahead of trades
§ Watch Price Action
§ Know the Support/Resistance levels for the difference timeframes as far back as possible
§ Know why you are in this trade vs. others
§ Know the Risk/Reward levels What are the Odds of the Pattern?
§ Where are you in the Trading Range
§ Don’t watch too many at once, 1-2 max
§ Trade your sweet spot
Reasons for Buys
Breakouts due to:
§ Ongoing Pump by a solid Pumper
§ What stage of the 7 stage framework?
§ Tech Breakout to new Highs on STRONG volume
§ Good News (K wins etc)
§ Earnings Winner
§ Short Squeezes caused by buy ins
§ Panicking Shorts covering into to the close
Chart Patterns for Buying
§ Gap Up/Morning Spike
§ Into the close spike
When to Exit Buys
· 10-20%
· At Aim for 50 Cents to $1
· Resistance levels
· When Risk/Reward reverses
Reasons for Shorting
Breakdowns due to:
§ Pump Breaking down
§ Red to Green intraday
§ Tech Breakdown with fading volume and breaking Tech Support
§ Panicking Shorts/ Margin Calls
Reasons for Covering Shorts
· 10-20%
· At Aim for 50 Cents to $1
· Support levels
· When Risk/Reward reverses
THE SEVEN STEPS OF PS FRAMEWORK
Nearly every great pump and dump goes through all or most of these 7 steps of the framework
Only slight variations but surprisingly consistent over the years
Understand the rationale behind each move, don’t just memorize as patterns are constantly evolving
Each step is a consequence of prior steps and the whole manipulation scheme
Some steps get skipped, some get repeated, just rinse and repeat
Trade each step the appropriate way when they appear, there is a definitive way to play each step
It’s not an exact science, have expectations but be willing to adapt to price action when it proves otherwise
#1 PRE/EARLY PUMP
· Big gains if you are right but it will take a lot of time
· Prepare to hold long for many days, weeks, or months
· The goal is to predict possible Supernova spiking in the future
· Best for the patient and small accounts looking for big % gains
#2 THE RAMP
· The runup speeds up and consolidates in anticipation of Supernova spiking
· Ideally sideways price action and then a technical B/O
· Greater Volume and Message Board Hype builds the upward pressure, it’s a powder keg
· Hold long for a few days or weeks
#3 SUPERNOVA
· Full Speed spiking with strong volume
· Often on a three big candle day as much as 20-50% a day
· The most rewarding time to be long a pump, but also the riskiest and quickest so be prepared to exit FAST
· BE VERY CAREFUL as some pumps end faster than others
· Make 50¢ to a $1 a share in a few minutes, hours or days on the long side
#4 THE CLIFFDIVE
· Small decline near the top turns into a full on collapse quickly
· Best time to short these for hours or days
· Also this is the most difficult time to find shares to short, usually you have to be early because everyone want shares when it becomes obvious the end is near
· If you box a position be quick to unwind any longs or risk getting wrecked
· Shorting scams when they spike exponentially increases your odds of winning dramatically because they are scams
· Sometimes you have to be early, will you get bought in? Ideally sideways price action and breaks through technical support
#5 DIP BUY
· Best time to buy a pump when there is still momentum and interest to bounce solidly after an excessive decline
· Hold long for minutes or hours, the risk being the bounce fails
· Use level 2 and Tech Analysis to predict short-term support levels and zones
· Shorts should buy to cover into panic due to possible buyins, buyers amplify the short-term upside
#6 THE DEAD PUMP BOUNCE
· Short the bounce off of the big tank
· Bounces or Bounce attempts can last a few hours or days and can have a great upside or fail miserably
· Sometimes the bounce never happens so short a break below or anticipate the break below any sideways price action
· Short sell for a few hours or days or hold the short longer term
#7 THE LONG KISS GOODNIGHT
· Extended gradual decline over weeks and months, just stay short if you can find the shares
· Be prepared for bounces that scare shorts out of their positions
· Ideal for longer term shorting patience required
· Easier borrows, several subscribers have had the most success with this step on plays like JAMN, IBAS, POTG, KNKT, HHWW
The first Tech B/O is the end of #1
#2 when it goes up everyday no down days
The cliff dive
Then bounce is up quicker
The dead pump bounce has less volume on this spike
When it breaks the lower lows it is #7
ALFSS-Always Look For Shares to Short