Biotech w/Kyle DennisKyle Dennis has fairly newsletters. They are Biotech Catalyst Swing Trading @$799 annually, Biotech Investor @$999 annually, and Biotech Nucleus @$2,999 annually.
I was trying to find out if any of the Gumshoe subscribers subscribe to any of these newsletters and any comments you might have.
Thank you, Kenneth
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Kenneth, lucky you are at the home of THE Best Biotechnology Forum on the Planet http://www.stockgumshoe.com/author/dr-kss-md-phd/ led by #ZKSS. Care to matriculate? Best2You ~ Ben
Kyle send you a text message everytime he opens and closes a trade,with the profit/ loss included. I just calculated his own texted profits and losses for 2017 and it works out on a loss of about $1500 .
Gist of this subscription : The biotech investor or the dollar ace as it is called is purely based on the fact that Kyle dennis refers to the Unusual options activity and picks a handful and sends that as a watchlist to his subscriber base.
Gameplan – He claims that he has a system that identifies these stocks and then he does the additional vetting and so called research as he tends to highlight and invests into it and thereafter sends it via text/mails/video. There is nothing to authenticate the so called system.
Selling point to his subscriber base- Is you just need 5 min of your day, all research and vetting done from his side and enjoy the profits at a price of 1499 – 1yr and 2499 – lifetime.
Reality check – Unusual options activity is something that anyone and everyone can follow , its just that you need to dedicate 10-15 min of your time. The simple approach is to identify these unusual stocks and look for a strong catalyst and invest a little OTM ( out of the money calls/puts). The second being invest ONLY for a shorter duration ( from same day to max a week) , take 20%- 65% gains. Profits can only be of use if you buy more than 10-15 contracts, which means a min of $500 investment .
Self reflection – The question that needs to be asked is would you be willing to pay a yearly/lifetime membership for something that you could actually do on your own . yes these seem enticing, but its ultimately up to the individual as to when to enter and exit. Profits on these are purely on the no of contracts, risk is also reciprocal. By the time the text or emails come thru the prices have gone by 5-10 cents and that option would seem pricey. Also the difference between kyle ( a millionaire investing ) and a rookie/small account holder investing is limited. There is always a risk of losing more than 50% of the capital in comparison to kyle. But it is true that small profits adds up to a bigger number. But trust me that once you master the art of understanding the unusual options activity , you could be another kyle dennis with a similar program trying to build a subscriber base. You can be happy till the time you see profits coming , but its difficult to authenticate the win to loss ratio that kyle claims. May be we are all swayed away with the profits that flashes on the screen.
Moral : What’s already available handy is something someone is paying for on pure ignorance. Yes ignorance is not a bliss atleast in this case.
I subscribed to Kyle’s Biotech Breakouts service. Unfortunately, I should have done my research on the phenomena of the “front running” effect that Kyle Dennis’s trades create. He looks for penny stocks that are supposed to have some big upcoming news that will impact the price. Usually he looks to buy the stock a couple weeks before this happens, but the bad part is that these stocks are so thinly traded and his positions are so large that he CAUSES the price increase. By the time his members get the alert, the stock price has always shot up outside of his recommended “buy zone”. When he sells, the price also drops dramatically and you may miss that window as well. If you do try to match his trades, you have to set your limit price and stick to it to hope the price drops after he gets in and your order fills. Otherwise, you won’t make the same money he does. He does offer videos on how you can follow his method and find trades yourself.
My expeience exactly. He does advise not to mirror his trades, but if you try you will get killed. I think he profits BECAUSE of his followers. They drive the price up for him, he sells, and touts big profits. It’s a beautiful system for him.
Yes, please see my just posted comments. I agree 100% with you. It’s a total scam that benefits only Dennis. Got to give him credit though for his used car salesmanship.
My experience exactly with “Biotech Breakouts”! Kyle day trades thin, cheap, biotech stocks in very large blocks which causes the price to go up. By the time the subscribers get the alert, he has essentially “front-runned”the trade! Rarely will your fills match his getting in and out. He boasts of making several thousand dollars while his followers often close for a loss. Works like “pump and dump”.
PS: After subscribing to Biotech Breakouts, I receive several offers a day for the more expensive Dollar Ace subscription—disgusting!!!!
I agree with several of the other reviewers on this thread. Technically, all of Dennis’ services are not pump and dump, but they have the same effect. He front runs all his picks. Example, he says he just bought $x at $1.90. You immediately, within two minutes getting in the alert, try to buy the same stock and it is $2.20. So, no matter what stock Dennis recommends, he makes $ two ways; (1) the subscription fees and (2)his subscribers are running up the stock and he cashes out.
It’s a real scam, but I don’t know if it is illegal. Gumshoe, would you please weigh in on this. Is this (1) illegal, or (2) improper? Dennis is almost guaranteed to make a fortune by front running in this way. It’s appears fraudulent to me.