See Tim's full bio HERE. Tim turned a few thousand dollars into a few million by taking small gains time after time on hundreds of volatile penny stocks, discovering that his trading strategy, while consistently successful, works best for those with smaller accounts.
Determined to teach others this PennyStocking trading strategy (learn more HERE), he went back to his original $12,415 roots (already $27,000 even though the stock market is down 20%!) to show everyone how to turn thousands into millions, even while having a life (somewhat) and making plenty of mistakes.
Hard work, Determination and Know How.
Hard work to learn how the greatly misunderstood niche of penny stocks provides opportunities every now and then on which you should pounce.
Determination to seek those probable profits out and know how in order to actually profit from them.
Long story short, wait for stocks that are extremely volatile - for whatever reason - and then aim to take small profits (between 10 and 50% within a few hours, days or weeks) here and there, either from betting on higher or lower prices (yes, you can make $ betting on lower prices, it's called Shortstocking (learn more HERE).
As Tim explains in several ALL-NEW instructional DVDs (see them HERE) and in over 900+ blog posts, penny stocks are the most hyped and corrupt niche in the entire investment world. These two qualities make them the easiest to profit from (legally) because the vast majority of people who play penny stocks are suckers and all-around ignorant people. If you have any intelligence whatsoever, you have a clear advantage and it's like playing basketball against mental midgets.
This is the #1 FAQ (see more HERE) and it is answered in THIS blog post.
Of course, that's just a brief introduction - to receive a full education, there is Tim's book An American Hedge Fund which is the story of his remarkable rise and lessons learned.
To truly increase your odds at profit, Tim has designed an entire set of detailed instructional DVDs, covering all the variables that amount to over 24 hours of instruction (see them all HERE)!
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The Chuck interview was classic.
Do you remember that time when Tim did that interview with Chuck? That was awesome!!!
Hey, Tim, I remember you saying you don’t like to short stocks that are under $1. What’s your reasoning? Those stocks are still volatile, and they can drop 20-30% or more just like the ones above $1. Is it too difficult to borrow enough shares to make any sort of profit at those price levels? For example, on sub-penny stocks you’d have to borrow tens of thousands of shares to make any profit.
50 cent stocks can become $1.50 stocks easier than $2 stocks can become $6 stocks. not worth it to short for 10-30 cents/share when there’s $1 upside, i’d rather short for $1-2 downside with $1-2 upside
China Shenghuo Pharmaceutical Hldg, Inc., +1.09 (28.99%), and way too much volume
Chris, Tim would inevitably tell you - but I’m going to tell you first: the name of the company is of no concern to us.
We really just need the ticker. Why search for a company name just so we can get the ticker when you probably already know what the ticker is and could give it to us. ;)
Feel me?
AMEX:KUN
Its KUN
Guys I have been trying to find an easy way to identify up and comming Pump and Dumps.
If you go over to stockfetcher.com and click on the SF 2.0 it will load a screener.
Then copy/paste in:
close is more than 10% above close 1 day ago
close has been increasing for the last 1 days
and average volume(30) is above 100000
and close is below 7.00
and close is above 1.50
and draw MACD(12,26,9)
Then hit scan and it will display all the stocks within $1.5-7.0 range that have gained +10% from the previous close, have increased since yesterday..Basically it identifys the surging Penny stocks so you can put them on watch and short when they start to faulter.
sorry about that, quick copy/paste mishap …. a little background : http://investerms.com/top_news/359.html
Anyone care to comment on KYUS at this point? It looks similar to how CNEX looked late afternoon the day before it tanked.
By the way, thanks Tim for KRY. Nice 10% gain for me. Planning on getting your DVD, so I can find these myself before everyone else gets in my way.
CHC looks ready for a drop..
BTW I found this on that scan i just posted above.
thanks wes!
PDO may be next CNEX
what is going on with PDO? … up more than $3 in 20 minutes…
what is going on with PDO … up more than $3 in 20 minutes…
what is going on with PDO? … up more than $3 in 20 minutes…
PDO may be next CNEX
PDO EPS
Earnings/Revenue came out: “Revenue increased 92% to $1,589,896 versus $826,180 in last year’s first quarter. Approximately 81% of the increase was due to higher oil and gas prices, which were up by $38.50 per equivalent barrel of oil versus the first quarter last year” http://www.tradingmarkets.com/.....s/1565624/
Here’s my stockfetcher scan for potential shorts:
Close gained more than 100 Percent over the last 5 Days
and Volume above 90000
and Close below 20
and Close above 1
PNTR looks intresting..
NSYS looks like a pump.
SATC
MVIS
AFN
I’m not suggesting any action on any of these stocks, thats for tim to decide if they are random penny stocks that shouldnt be dealt with..I’m just pointing some out that I see on my scan
let KYUS run, cant sustain this volume for too many days, but i wouldnt be surprised to see $3
yes PDO earnings are nice, where is THE BARBER now? idiot shorts random strong penny stocks…works much of the time, get squeezed badly sometimes
sorry about the slow site guys, we’re changing hosts over the next day or so so we’ll be lightning quick!
Man…wish I had the cash and foresight to go long on PDO just before that crazy climb…oh well.
Tim, QBIK is looking tasty.
I’m in 500 KUN at 4.98. Was smart and used an AOK order so I didn’t get a fill for 106 shares. Hoping for a bit of a fade, but my ideal exit will be sub 4.30. Probably not going to happen today, so may hold over night based on what I see. Anyone think that is a really bad idea?
I have about 8 different screeners for penny stocks over at TDA including one I call the Supernova shorter. TDA does have some pretty nice tools (did I just say pretty nice tools?).
Does anyone here use the Nasdaq Level 2 BookViewer? I find it much more useful than standard Level II..
ASIA again
hey, on the lion site, what does eom mean?
Great advice Tim. I got out of KYUS 2.63 and I feel great about it.
Glad I got out of KRY this morning too. It just went crazy a few minutes ago. I don’t know what I would have done if I would have still been in it. Some of you may wanna check out that chart.
wes good scan, nsys is earnings though and mvis has proven it takes a while to drop
qbik will be nice if it breaks 2.4, but otherwise its a bottomer like idmi
short onQTWW, not sure if holding overnight………???
SEMSEI !!!!
KUN volume dropping off….
why would u short QTWW or KUN? both are still way up on the day…what dont u guys get about shorting only on the first down day? u see me break that rule and lose often enough to learn by now, right? u see everyone who shorts RCH get squeezed right? my god, i’m gonna have stuff my dvd down your throats like spinach to children just to help u better understand this stuff
QTWW
Is that resistance at 1.80?, we wont know if it bounces down from there… maybe breaks…
Too much for me to hold overnight. Shorted at 1.68 average
GEtting out before the close, made just pennies… wasted my morning
I actually went long on KYUS yesterday since I felt it had some more to give before it gives up. They released that pump news yesterday about closing on that new drilling site so I figured it would have another good day. I’m up 15% on it. I still think it might hit 2.75 by tomorrow but I’m debating wheather or not to take my profit and jet. It wouldnt be a Pattern Day Trade so I most likely should.
Im also long on RCH for a little scalp. I have to hold this one until tomorrow (PDT) but I figure it will gap up again like it did today.
Just shorted KUN at 5.11. Let’s hope it goes kaput tomorrow AM.
good Wes, i’m glad someone has the balls to trust the charts on KYUS.
jesse u will get squeezed or u will get lucky. either way, horrible horrible short here
I wouldn’t short KUN yet, I think its going to drop hard tomorrow though. However, it could bump up for a little punch to the stomach before then
Got squeezed on KUN and got out at $110 loss. Despite there being twice as many sell orders as buy, there was never any fade. I should have waited until a down trend, instead I tried to move in when it was sideways with a lot of sellers. It’s worked for me in the past, no such luck today.
KUN up 40 cents now from your short, i’m sorry, but welcome to undisciplined shorting…we play the most volatile stocks here, u either play by the rules or u get taken out and shot…i created my DVD to specifically help u people, if u’re too cheap to pay $300 i’m sure the market will charge u much more and u wont be able to replay your lessons over and over again free of charge.
Tim, your DVD is only going to help people that listen… and usually people don’t learn to listen until they personally get burnt for not listening.
It’s like ‘the stove is hot don’t touch it’ but you touch it anyways because you’re a dumb little kid.
West - Im long with u as well on RCH
PDO - just going out of hands.
yup, people are gonna get burned and it pisses me off that they wont listen beforehand, but i guess thats what has to happen
Now you’re a mind reader too :) I was just thinking, ah what’s 100 bucks, maybe I should just say “ah what’s 300 bucks” and buy the damn DVD.
I think the thing with most people who are new to penny stock shorting is they believe anything that spikes 30 percent in one day is going to bomb the next day.
Before I got into pennys I traded the big names (AAPL, GOOG, RIMM, ect). So to do that successfully I had to learn TA. While TA isnt as solid on these pennys as it is on the big names it still works. You can still find resistance and support.
With a good understanding you will better understand the variables that make stocks trend up and down.
Penny stocking only makes me want to learn more about TA. If I had 25k+ then I feel TA would even be more of an asset.
I just went long on KUN, I’ll put a tight stop, but it should gap up again since buyers surged into the stock late day.
Right now Im long on KYUS, RCH, and KUN. They haven’t showed signs of weekness yet.
EDIT: My tight stop at 2.6 went off right before close. I still think it will advance tomorrow I just wanted to lock in my 15% return.
Well lucky for me it’s just in my own mind, and not with real money ;) So if I lose I’ve learned a lesson, if I win I’ll be sad for not using real money but at least I’ll know I did the right thing…
great interviews tim, anybody get into idmi last week? Said low 2’s are it’s pump range and thats what happend today.