One of the fundamentals of The Lean Startup by Eric Reis is the pivot or pursue decision.
First your propose a feature and why you think it will lead incremental improvements to your conversion and engagements scores. Then you develop the feature, implement it, let the experiment run, review the results and decide whether or not the feature should continue to be developed or if the team should pivot in a new direction.
I started learning about penny stocks at the beginning of October. It’s been 6 weeks and it’s time for a pivot or pursue discussion. By the end of this post I will have clearly laid out the results and implications of the 6 week experiment, discussion the possible paths going forward and I will have made my decision.
Results from 6 weeks of studying penny stocks
- Since I started penny stocking, I’ve started training 6 days a week again, I am into the 5th week of my regime and I havn’t missed a single day!
- I built an awesome sit/ stand desk with dual monitors
- I have hand written notes on at least 500 flashcards and I study them most nights
- I have followed videos on Youtube on how to make my shitty old laptop faster and it’s worked
- I have become far more organized
- I did a data detox
- I started reading Head Strong by Dave Asprey and decided to make my health and energy a priority
- I have been following penny stocks
- I have made 5 trades
- I have only lost $300 in my small account
- I have watched low float stocks go from $6 to the 20’s in real time
- I have started using the Sykes’s Sliding Scale to rank possible trades
- I actually ranked HMNY as a good buy at the close on Thursday at $12.25 and I watched it hit $13.75 on Friday
- I have made getting up at 5:00am an operational imperative (still working on actually getting up at 5:00am everyday)
- I have started drinking and brewing kombucha again
- I have started looking at Bitcoin and other cryptos as possible investments
- I have been very focused
- I actually feel that it is possible to earn a lavish living from trading penny stocks
- I have begun setting big goals again
- I actually believe I can win at penny stocking
Deciding to start trading and learning about penny stocks has actually been the best thing I have decided to do in a long time. It’s lead me to start getting my shit together, staying organized and working really hard. As Hunter S. Thompson wrote to in a letter to a friend, “a man must choose a path which will let his ABILITIES function at maximum efficiency toward the gratification of his DESIRES.” Some of my strongest abilities have to do with finance, risk management, my high pain threshold, and my comfort with uncertainty. Those are four things I feel are necessary to being a successful trader and trading is a niche that can lead to the gratification of my wildest desires.
By my calculations 1% of Tim Sykes‘s students have gone on to profit six figures and 0.1% of his students have profited seven figures from trading penny stocks. In his How To Make Millions DVD set Tim says anyone can use the strategies in this DVD set to grow their accounts exponentially and make $1,000,000 from trading penny stocks in 4 to 5 years. And as Tim preaches and I have learned, you don’t have to be glued to your computer all day because the best hours to trade are the first and last couple hours of the trading day and a person can trade from anywhere in the world with an internet connection.
Some of my desires include getting barreled at Skeleton Bay, traveling and adventuring all around the world, eating the best foods in the world, inspiring young entrepreneurs and contributing to environmental projects. All those desires except getting barreled at Skeleton Bay can be fulfilled by trading and trading can even provide me with the time to surf and the money to learn from surfing coaches which will lead me to getting barreled at Skeleton Bay.
Like Sykes said in a Youtube Video, “That’s the beautiful thing about money, it might not be able to buy you happiness but it can buy you any fucking life you want!”
As Thompson goes on to explain in his letter, it is not so much about choosing the right goals as it is about choosing a way to get to those goals that you know you will enjoy. I have enjoyed that penny stocking is challenging, volatile and potentially highly profitable and how I have felt engaged while penny stocking.
Pivot or Pursue
As I see it I have three options:
- Pivot away from penny stocking
- Pursue penny stocking full time
- Pursue penny stocking but pivot to part time penny stocking
I have seen too many incremental positive improvements in my life in the last six weeks and the potential upside from being a successful penny stock trader is far much for me to pivot away from penny stocking. That leaves me with options #2 and 3.
I decided to try penny stocking right after I failed to get a job at Shopify for the winter, I had just moved into a new place that ended up having a bad smell and I cut my losses after living there for just two weeks and moved back to my parents house. I bought Tim’s Millionaire Masters Program with the last money I had and I have been living super frugally for the last six weeks. Racking up a bit of debt on my line has credit hasn’t been something I wanted to do and if I continue to penny stock full time I will be living on my line of credit until I become a profitable trader and grow my account to a decent size.
I don’t see this as ideal.
Tim would probably tell me to get my shit together and then start trading and I see the rational behind it but I also know that the more time I can devote to learning and trading the quicker I can become a profitable trader.
I was hoping I would have a magic touch and instantly be profitable but it hasn’t been the case within the first six week and I am okay with this being a long term journey.
Living on the west coast, if I get a job, I can still get up at 5am and trade for the first hour or two of the trading day and trade the market close on my lunch break. Even though I have been at my parents house without a job there has really only been one week worth of days where I have had the whole day to trade and study, almost every single day I have been interrupted for a few hours during market hours to help do something around the property. Don’t get me wrong, it’s not that I don’t enjoy contributing to projects it’s just that I have been trying to focus full time on learning about trading and my environment isn’t allowing it.
Since I am constantly being interrupted during every trading day, I may as well be getting paid by those interruptions.
Solving the cash flow issues in the short time by getting a job while I build long term cash flows from penny stocking does seem pretty reasonable.
It’ll also allow me to buy clothes, go to yoga and work out classes instead of doing both at home, eat healthy grass fed meats and take supplements that will lead to a high performing brain, go on small adventures and move out of my parents house again.
All of these things I will be able to do and so much more once I am a profitable trader too..
As I see it, it comes down to a question of how uncomfortable I am willing to be until I become a profitable trader
Yes, I don’t want to live at my parents house and I want to eat the best healthy food right now but will that discomfort be the motivation I need to work hard enough at penny stocking to become successful or will the stress of it cause me to rip out all my hair? Tim’s top student Tim Grittani who has gone on to make $4.6 million in trading profits wasn’t profitable for the first 9 months he traded. The runway on my line of credit isn’t 9 months long.
Also I can grow my small trading account by contributing some of my wages to my account and I could even pay to join Tim’s Challenge program which will give me even more lessons and knowledge. Getting a job will also give me another thing to work really hard and succeed at which will improve my discipline. But what if I get a job and I get comfortable and become complacent and stop trading?
I see trading as a life long journey and I am stoked for the day I make a $20,000 trading profit from an airport lounge but in the mean time I have bills to pay and healthy food isn’t cheap and I really want my own apartment. As part of the journey, I feel that growing my small trading account, part time, to the point where I can quit working and worrying about money will be an incredibly rewarding experience.
It’s time to go back to work but what work I shall be going back to will be the topic of another post.