The Daily PennyStocking Roundups Begin Now!
Based on my book/DVD sales, email list and website subscribers, there’s now a few thousand of you out there who are playing these trashy low priced stocks based on my PennyStocking strategies, which obviously makes me Naismith-like proud. Don’t get me wrong, I didn’t invent making $ from buying and shorting these corrupt companies, I’m just gonna be the one to popularize it! Especially short selling these suckers!
Since there’s sooo many different players trading sooo many hot stocks now, I thought we’d have a daily roundup post like this that will benefit us all. Forget about just my trades/lessons and gains/losses, I want you guys to share your daily moves too! If we all share our thoughts/trades openly, everyone benefits and can better be able to adapt to the current environment/evolving patterns. 90% of traders lose $, so if we can reduce that number here to say 20-30%, we’re not only profiting, we’re doing something helpful/meaningful. (These kinds of posts are just the beginning)
So, this morning–no matter that I’ve repeatedly stated it’s wrong to short into a morning spike cuz they always go further than anyone expects–I broke my own rules and shorted, current Supernova-forming FPP. Even though it was a commodity play–which I hate–and an earnings play–which I also hate, emotion got the best of me as I shorted 1,500 shares at $3.92, expecting the wall of sellers at $4 to hold and for me to scalp my way to $300-ish profits rather quickly.
From the get go, FPP didn’t cooperate, holding steady near its highs, within 5 minutes taking out the 15k sellers at $4 and surging straight to $4.25….as this was happening, all its fellow oil and gas plays like PDO and MXC were making ridiculous runs, so FPP seemed the cheap way to get in on that momentum–aka the upside appeared bright.
I immediately covered half my position at $4.25, waiting to see if I could get a better exit on the remaining 700 shares, since despite the breakout and its momentum, there were sellers as this is a stock that had already squeezed shorts on Friday and normally never moves more than 25 cents/day…I was right yo hold and within minutes I covered my remaining short at $4.01, total loss of $350ish, but saving an unnecessary additional $175 loss.
I was right to suspect a morning pullback, but it went further than I expected and a 25 cent pullback on an AMEX stock is not enough to EVER warrant a short, risk-reward-wise…later in the day it pulled back 50 cents off its $4.50 high…$4 acting as support yet again…just the latest lesson how it’s easier to short in the afternoon, even if you’re wrong–as the stock bounced off support and finished at $4.28…even more important a lesson, just go long the momentum, short only when it goes red on the day, preferably in the afternoon, which could happen tomorrow or Wednesday or Thursday…who knows.
Next, I looked to short directly into every short seller’s nightmare, MXC. I wanted to wait til the afternoon–honestly I did–but with its illiquidity and blatantly obvious Supernova chart, I knew from experience it’s best to short right into that kind of absurd move and just hold on for your life. So, I shorted 200 shares at $27.08…nice seemingly solid wall of sellers at $27.50…within minutes it was at $26ish…thought about covering, but the price spread made it tough, a quick ask in at $25.50 coulda woulda shoulda been $1.50/share gain, but I wanted more, like $3-$5/share…so I held.
But the weakness was brief and although the sllers look determined, the bids keept increasing and I knew with my recent losses I had to protec tmy tiny account from getting tinier…after all, once the wall at $27.50 and $28 fell there could be a monster short squeeze to $30+…I’ve seen it happen before…no thanks…covered at $27.50, just before that wall came tumbling down…stoc continued getting stronger…surprisingly…then it got halted just under $28!
At first I thought it was the standard SEC questioning the company for more info, company would deny any new news, stock would tank, but lo and behold MXC came out with drilling news…it’s debatable whether or not the stock will spike or tank, but it is actual news for this still only $50 mill company, albeit, slightly fluffy, ‘m glad I’m not in it…ideally there’ll be more opportunities to short this sucker, we’ll see.
Total loss on the day, $58, including commissions…for all my hard work, a loss of $205 on the month. Buuuuuuut the good news is I’ve learned to cut my losses hardcore and protect my account. When I do my monthly review, you’ll see I’ve made just about every mistake in the book and yet I’m down like 1%??!?!? Yup, it’s good to cut your losses, you do that well, it’s extremelyyyyy tough to be one of those 90% of traders losing $.
Let’s hear how you guys did, trades, lessons, gains/losses…let’s round ‘em up…and please for learning sake, be honest! (don’t be afraid to post stocks you’re watching too, crap like CWSI are great finds!)
Get Tim's pre-market watchlists, real-time trade alerts & access to subscribers-only website all for just $1/day -- sign up for TIMalerts today!
Alternatively, get all blog posts emailed directly to your inbox by signing up below:
LoadingRelated Reading
60 Responses
Trackbacks
Add a Comment!
If you want to receive TIMBUCKS, you'll first have to Login before posting a comment. Click here to learn more on the new TIMBUCKS rewards program.
Top TIMbucks
Our top TimBucks earners to date are:
- Yngvai (478)
- JMoates77 (258)
- ViciousChicken (206)
- Fantom (196)
- Davey (194)
- brent (172)
- trader@MIT (163)
- investorslive (162)
- ivegotstylekid (155)
- noobtrader.08 (150)
Navigate
Only $29.95/mo
Earn $$$
$
Participate & Earn
52 Links
136 Books
Buy TIM products!
Up 81%
Clips 24/7!
UPDATES
TIMtrades
Learn from my successes, learn from my failures, learn from TIM. Click here to learn more.
| Date | Stock | Buy | Sell | Net |
|---|---|---|---|---|
| July 23 | MKTY | $4.73 | $5.40 | $187 |
| July 22 | MKTY | $4.10 | $4.28 | $240 |
| July 21 | ZYXI | $3.03 | $3.18 | $130 |
| July 15 | MNLU | $6.37 | $6.73 | $340 |
| July 11 | IDAE | $2.27 | $2.49 | $630 |
| July 8 | ERII | $11.29 | $11.00 | $162 |
| July 3 | TGC | $2.14 | $2.39 | $471 |
| July 2 | HYGS | $2.15 | $2.29 | $260 |
| July 2 | TGC | $3.44 | $3.49 | $80 |
Total: $22,457 (
81%)
1J Monie(TIMBUCKS: $54)
May 19th, 2008 at 6:34 pm
CPST has been shooting up more than the junkie in the alley. I love it.
2timothysykes
May 19th, 2008 at 6:40 pm
funny comment but not educational, lets hear how long u been invested why u got in, gains/losses, c’mon dont be afraid to share
3traknologist(TIMBUCKS: $60)
May 19th, 2008 at 6:56 pm
So your still in J monie.. Just be sure to plug in your stop loss. Holy shit with mxc!!!
4jesseb(TIMBUCKS: $95)
May 19th, 2008 at 7:08 pm
Well not too impressive - but I saw FPP this morning and picked up 100 shares to go long at $4.09. I was looking at it before the bell ($3.14 or something?) and thought “I should buy this”, then I went and took a shower, came back and it was upwards of $4.50.
It came down to $4.09 and I bought in. Got jumpy because I had to ride the train for an hour to work so I put a trailing stop for 5%.
While on the train it shot up to $4.48 or something and then dropped back to $4.27 at which point my stop kicked in at $4.29.
With my tiny account I didn’t make much of anything, but at least it was SOMETHING. ;)
5timothysykes
May 19th, 2008 at 7:13 pm
thanks jesse, and no account is too small, we all start somewhere, the fact that u just shared openly for all to learn from makes you more importantly/valuable/meaningful than billion dollar fund managers who never share a damn thing
6jeffrogers77(TIMBUCKS: $6)
May 19th, 2008 at 7:21 pm
ok, i’ll bite, the only trade i made today was shorting 2,000 shares of COIN at $8.25 so i’m up $400 in unrealized profits. i’ve made $6,400 now in 3 weeks simply by shorting these momentum plays in the afternoon when they crack important support levels. first it was VM, then VRML, KYUS and now COIN. i know COIN hasn’t breached the mid $7s, but I like how weak it was today so i anticipated a break of the day’s low at $8.20 for a few extra cents. i know this broke tim’s rule, but it’s worked out so far!
on a side note, i have to say tim i really love what you’re doing here, thanks again!
7YngvaiMalmsteve(TIMBUCKS: $478)
May 19th, 2008 at 7:43 pm
No shorts for me today but I did buy 227,000 shares of MMGP at $.0022 into the close on today’s breakout. I made a post to the forum as to why I bought it. What I thought was a mistake may turn into a nice profit if the late SEC notification and the upcoming filing cause enough hype and cause this breakout to run
8jesseb(TIMBUCKS: $95)
May 19th, 2008 at 8:00 pm
lol, that’s a huge number of shares!
Fun stuff…I have 1500 shares of SPNG. It’s probably crap, I was hoping to make a little bit of profit on it but I’m probably going to close out my position soon if nothing happens.
9YngvaiMalmsteve(TIMBUCKS: $478)
May 19th, 2008 at 8:05 pm
Hey, Jesseb, not sure where you got into spng but based on the charts it looks like its showing signs of reversal and an upcoming upswing.
10sonid
May 19th, 2008 at 8:11 pm
Made the morning move LONG on FPP hit it for about a $100 dollar profit and got out at the right time. Wanted to short but set my short a little high and missed it by two cents of the days high.
Also, early morning I reserved shares of RCH to short and set my short at 11.50 but when it triggered within minutes I got shook out of it because I was afraid it would keep going. Kicking myself I left about 300 on the table and made on $20 bucks. I didn’t have the time today and was busy so I covered right away but should coulda woulda I guess!
11Dan_O
May 19th, 2008 at 8:16 pm
Here’s a cautionary tale:
1. Motivated by greed I ignored the “Don’t play earnings MOMO plays, frauds are more predictable” Rule and reserved shares of PDO.
2. After watching PDO for two days I let myself be distracted by real life BS (wife, house remodel, boring) and I missed 90% of the afternoon fade. I compounded my error by CHASING THE TRADE and jumped in for the last 60 cents and should have covered for 120+ in profits but… GREED mindfu*ked me and I eventually covered for a 147.00 loss.
This is why traders fail. Lack of discipline, impatience, greed, and stupidity.
Fortunately for me it was a small position, and I took my losses quickly.
12jesseb(TIMBUCKS: $95)
May 19th, 2008 at 8:21 pm
Yngvai, I think I bought at like .044 or .045. So you think it’s going to go up eh? That would be good for me…heh
13YngvaiMalmsteve(TIMBUCKS: $478)
May 19th, 2008 at 8:25 pm
I’m just going off the chart pattern. You’ve got the doji star yesterday (usually a sign of reversal in a chart pattern) and then what appears to be the beginning of an uptrend today. Of course, it may only uptrend back up to 0.05 since there appears to be resistance there. That thing’s going to have to break 0.05 to really get a run going.
14Evan(TIMBUCKS: $56)
May 19th, 2008 at 8:25 pm
Yngvai, would love to know what you think of ebof.ob I’m in it from a while back, but think it’s due for a pump. I’m also still neck deep in tens of thousands of shares of good ol’ Havoc Energy drink, ticker aend.pk - If it gets to .01, I’m out before it goes sub penny, but hoping for a pop soon like last year’s. So glad I’ve found TIM, and a strategy to ride these p-oh-s’s down.
15jesseb(TIMBUCKS: $95)
May 19th, 2008 at 8:28 pm
Yeah, like I said so far I haven’t been too impressed :P
But I mean, they’ve had a ton of PR lately - that should account for something. I know only old people and the jobless watch The Price is Right…but still, that’s exposure ;)
16YngvaiMalmsteve(TIMBUCKS: $478)
May 19th, 2008 at 8:37 pm
Well, just because EBOF is due for a pump doesn’t mean you’ll get one. Some people are still hanging onto dead tech stocks from 2001 thinking they are due to bounce back but they never do.
I’m no expert, but it looks pretty dead to me, and the volume for a subpenny stock sucks. I don’t know where you bought it but I doubt it’s ever going to get much higher than it is now. You’ll get little surges here and there, and maybe some better ones recently due to the popularity of energy-related stocks, but I wouldn’t sit around hoping for it to come back.
17Joseph
May 19th, 2008 at 8:54 pm
Well after six months of non-stop hardcore learning/researching (8+ hrs/day on top of my engineering courses) I can finally say that I understand how this market works.
Today was a bad day for me, however. I didn’t stick to my system and I got burned, and I mistakenly went over the 3 day trades allowed for the second time, which means I will no longer be able to trade on margin…I was winning the UpDown challenge (6th) just two weeks left, but then again summer school got in the way and I can no longer focus my attention on that…In the CNBC million dollar portfolio portfolio challenge, I ranked 28th w/ my first portfolio, 73rd second portfolio, 54th 3rd, 1200ish last two portfolios…Again these damn engineering classes simply won’t give me a break.
All these contests/challenges made me realize that no matter the challenges/market, I will always be able to adapt and design a strategy that works. That’s what I’ve learned today. Now I’m going to focus on finishing school and saving and learning some more, but when I’m done, when I do have time ha…
Thanks Timmay. Good luck to you guys
18Mike_13th
May 19th, 2008 at 9:24 pm
These trades today are all timestamped from the chatroom I’m in:
5/19/2008 6:44:35 PM
5/16/2008 5:52:55 PM
MESA sinking down to .5711
47% gain from 1.085 short entry
SSBX at 3.26 from 4.10 short entry
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
MESA showed a little green today,closing at .60.
If it’s green tomorrow in first half hour I will cover my short.
SSBX is sinking like a rock,closed at 2.97
Watching the premarket action and knowing how certain stocks should react at the open is vital to maximize an account imo.
17 mins before the open I had my eye on these 4:
(May 19-09:13) 13th_FLOOR: PEIX near 4 pre..BCON some decent vol …52s fri CDY up a bit
(May 19-08:49) Wpg: CPSL action in the pre-
Thanks to WPG on this beauty!
PEIX opened at 3.80 and closed at 5.14 and is up in afterhours!
BCON opened at 1.28 and hit hod 1.57 closing at 1.45
CDY opened at 3.38 and hit hod 3.50 closing at 3.42,not so great but I’ll take it
CPSL opened at 6.49 and hit a hod of 8.48 closing at 7.96!
Jumped all 4 right after open,had a very good day with these plus ahhhhhhh,the power of 52 week highs and max momo:
10 mins after the open:
(May 19-09:40) 13th_FLOOR: MXC 21,still going,52s
Only thing that stopped this one was it was halted at 11 am,haha
By that time this monster of late was at 28
7 bucks in less than an hour and a half!!
Plus yet another 52 wk/high lower float mover:
(May 19-09:44) 13th_FLOOR: GEOI 52s 23,in there
(May 19-12:25) Laura: 13th_FLOOR: GEOI 52s 23—4 bucks fast, nice call
Smokin’ Move there on GEOI
With these 6,plus MESA and SSBX holds, my account continues to soar,too good to be true it seems to me but I ain’t backing down,still going in aggressive.
Short today:
(May 19-09:55) 13th_FLOOR: short PRVT 1.89,fingers crossed
(May 19-14:13) Laura: PRVT bid 1.59, nice short from around 1.90 range (I got some too 13th)
(May 19-14:03) 13th_FLOOR: shorting PCOP 3.99
(May 19-14:17) 13th_FLOOR: PCOP lod 3.70
went on to lod’s 3.62
Plus this true penny stock gapper caught in the premarket before open:
(May 19-09:27) 13th_FLOOR: penny JYTO looks to gap
Did gap open to .77 ran to .92 later in the day.
Ripped it today,tomorrow who knows?
19Ben_Bien(TIMBUCKS: $146)
May 19th, 2008 at 9:46 pm
UQM short:
shorted 769 shares of UQM at $2.52 after reading about it on Tim’s site at around 7 AM, set a buy-to-cover limit at $2.14 and it executed later in the afternoon. Recap: it was a good thing I took the quick gain because UQM has moved horizontally since that day and has maintained a steady price level at around $2.30-$2.40.
BHBC short:
shorted 811 shares of BHBC at $3.31, set a very conservative buy-to-cover limit at $3.01 and it executed while I was at the beach with my friend. Update: BHBC ended up moving even lower off its high of $3.50 and is currently down to about $2.50 today. Perhaps I covered too early, but who woulda known.
PCOP short:
shorted 328 shares at $4.41 because I’m still playing it safe to protect my baby-sized account, and I set a buy-to-cover limit at $4.01. It ended up executing while I was in class today so I made about $134 on it.
Current short positions:
286 shares of QRCP at $10.47
74 shares of ENS at $33.80
20Ben_Bien(TIMBUCKS: $146)
May 19th, 2008 at 9:48 pm
P.S. how the hell are you “reserving shares”, Tim and others? Because on thinkorswim it keeps showing a “hard to borrow” message when I look up things like SSBX and PEIX and PDO. Let me know what I am doing wrong or if these are actually unavailable or if my account is just too weak to get access. Thanks!
21Tyler
May 19th, 2008 at 10:07 pm
Pardon if I’m interrupting the trade log sharing here but I think this might be helpful if you all aren’t using something similar to this already to find these penny stocks. Marketwatch.com has an after-hours list (on their screener) which you can re-order by %change. I just kind of wandered onto it but sure enough, first on the list is ticker XNL up 65% on 2.5 mil volume during market hours and up 74.6% more on only 300 volume; all today. Unfortunately I am under margin limits right now (and use scottrade anyhow) but I am not yet real familiar with the criteria for a good microcap short yet but something like this catches my eye as a little off kilter even as far as market value goes.
22Oliver(TIMBUCKS: $32)
May 19th, 2008 at 10:09 pm
any thoughts on VSA?
an insider apparently bought shares. how does this effect the short-selling strategy, tim?
23cacaosteve(TIMBUCKS: $25)
May 19th, 2008 at 10:14 pm
Bought to cover KYUS at 2.20 from Friday short at 2.45 for about $200 gain.
Shorted FPP today at 4.27, almost immediately it was at 4.14 but then went up and I bought to cover at 4.40 for about $70 loss after commissions.
can’t wait for a supernova!
24Mike_13th
May 19th, 2008 at 10:20 pm
Ben_Bien,
Besides having your TOS account get an IB account too if you have the money.
Commish is low there also.
I shorted SSBX days ago and it’s still available there.
PDO and PEIX were/are available there too.
25Evan(TIMBUCKS: $56)
May 19th, 2008 at 10:21 pm
Yngvai,
Thanks for the insight/research you did for ebof. I’m sure you’re right, it’s always hard to watch a stock you’re long on for fundamental reasons turn south and never recover. That’s why I’m learning the chart patterns here- to help turn off the wall street noise and forget about hoping some stock will be the ‘next EFUT’. I’d rather wait for the supernovas I never knew existed so I can short ‘em. So far, I just missed VRML, but had great gains in CNEX and KYUS thanks to Tim. I’m holding KYUS overnight (which may prove to be really stupid), but I also have watched pretty much every one of Tim’s calls go further down over the long stretch- especially the recent SSBX I missed. Have a great night and trading day tomorrow!
26investorslive(TIMBUCKS: $162)
May 19th, 2008 at 11:05 pm
Tim heres a post you’ll like
http://www.investorslive.com/b.....aying-off/
Check out the full section too.. lots are sneaking up and charts you’ll love
27timothysykes
May 19th, 2008 at 11:27 pm
thanks for sharing guys, a few comments:
-Oliver insider buying and selling is near meaningless, the insiders know that people who watch CNBC care about it, example probable fruad CNOA CEO buying shares
-life does get in the way of trading, as does fear, greed and a lack of discipline
-investorlive, good charts, i’ve got many of them in tomorrow watchlist!
28getshorty
May 19th, 2008 at 11:54 pm
finance.google.com just launched its screening tool.
Playing with it, nice customizable filters
29Ryan
May 20th, 2008 at 9:13 am
Ben_Bein, fyi, Ameritrade has PEIX to short as many shares as you want.
30sniper6
May 20th, 2008 at 9:21 am
only made one move yesterday, long SATC 100 @ 2.35, for some reason I ignored my primary target PEIX ( i guess because I spied it pre-earnings and was wary of a bad report)but I think Wes got in long, you go Wes!
31bullpicks6
May 20th, 2008 at 9:28 am
Looks as though JYTO, GFET, BWEN and PSRZ are the OTC’s big plays today… all should be good on the longside
32Joshua Barr
May 20th, 2008 at 9:36 am
MXC was just halted _again_ after trading a little in pre-session. Any thoughts?
33Ryan
May 20th, 2008 at 9:46 am
MXC is trading now!
34Ryan
May 20th, 2008 at 9:49 am
MXC reached $32.99 and now back to $28 and change area, very volatile!
35YngvaiMalmsteve(TIMBUCKS: $478)
May 20th, 2008 at 9:50 am
CWSI is tanking. I was in at $5.25. Wish I had gotten in at $6 as I thought there might be a good chance of a morning sell-off since it ran up so high, but was a bit scared of any morning squeeze so I waited a bit before I entered. I’m still in…this thing is still dropping
36JMoates77(TIMBUCKS: $258)
May 20th, 2008 at 9:51 am
FPP is still going up, waiting for the whites of their eyes, got 3000 reserved.
37wes
May 20th, 2008 at 9:51 am
Ya man I got in on PEIX at 4.6 yesterday sold today at 6.43. Made a boat load of cash
38wes
May 20th, 2008 at 9:54 am
Im going long on some of these oil plays today. oil up 2 bucks. I just got to find a good entry
39Keith
May 20th, 2008 at 9:54 am
Shorted 300 PDO @ 20.40 Well see
40JMoates77(TIMBUCKS: $258)
May 20th, 2008 at 9:54 am
Where’s Tim this morning? Is this the morning when he is sleeping in just so he doesn’t trade in the morning?
41wes
May 20th, 2008 at 9:55 am
jmotes dont short in the morning especiallly when oil surging and fucking the broad markets today bad. today could be a hairy day for the market in general
42Webster
May 20th, 2008 at 9:56 am
FPP is going through the roof again. It faded in the afternoon yesterday, let’s see if it does it again.
43JMoates77(TIMBUCKS: $258)
May 20th, 2008 at 9:59 am
Duh Wes, I’ve been reading Tim’s blog too long not to know that. Just got em reserved for an afternoon fade.
44wes
May 20th, 2008 at 9:59 am
peix is at it again.
45Short Shot
May 20th, 2008 at 10:00 am
short RAME 6.15
46wes
May 20th, 2008 at 10:01 am
just went long on mxc at 31.7
47jesseb(TIMBUCKS: $95)
May 20th, 2008 at 10:04 am
Man, I don’t think shorting PDO is a good idea Keith. It’s up over 2 points today already and it has steadily been kicking ass since last week.
Seriously, Tim would probably kill you for shorting this early on THAT stock…
48timothysykes
May 20th, 2008 at 10:06 am
crazy morning, too many stocks in play, too much work getting this new site up and writing blog posts….i fuckin love it, new post will be up in 5 minutes