You know why I’m always promoting my 6-hour PennyStocking instructional DVD package? (See the first independent thorough review HERE) It’s definitely not about the money—not yet anyway—it’s to help teach you guys the rules of trading penny stocks that I’ve learned the hard way over the past 9 years. I’m giving you my battle-tested rules of engagement that I wish someone had given me when I first started or even now cuz anyone with a decade of market dominating success is someone worth listening to and learning from.
Don’t say you’re gonna dip your toe in penny stocks and make some amateur error, writing it off as “why penny stocks are like gambling” or how it’s “part of your penny stock education”. My DVD is your tuition—I should probly get it accredited or something—not the more expensive stupid trading losses!
You want some examples? Fine, I’ve got plenty of them (people, I’m gonna use your comments not to be mean but to make examples out of you…it’s not like any of you use your full name anyway!)
First that comes to mind is Wes shorting SIX after a morning panic 10% drop. Stupid stupid stupid…even though I occasionally short in morning, I don’t recommend it—there’s too many spikes, the afternoon is usually much more gradual. And, even when I do short, I short looking for that morning panic, NEVER after it!
As for shorting IAR, NLS, VNDA or SIX—I’ve repeatedly said I don’t short earnings plays and there is a reason why I avoid them. Cuz earnings plays actually DO deserve to surge higher cuz the company is doing well—or at least that’s the perception. While they could very dip—as they sometimes do—the odds of a big drop are miniscule, so with my poor timing skills—which you probly have too—there’s no reason to even consider shorting them. I post them on my watchlist as potential buys only. Stick to shorting failing companies, frauds and pump and dumps, then you have the odds on your side!
Whoever just shorted VRML at 3.50—that was just a stupid entry…in the 3.70s or 3.80s, at least you still had a chance to get some nice space between you and the support at 3.45, but if you’re betting it goes negative on the day, there’s no point in shorting that close to support until that support cracks—ideally you short, making it crack…tough lesson for people to learn that sometimes its better to short at a lower price or not at all…sure, it still looks good, but now its just a waiting game.
With today’s VRML’s 10% drop off its morning highs, whether or not I’ve screwed up or there weren’t share available to short, I’m now 4 for 4 in my calls in the last 4 days:
LGDI 10% morning drop on Monday
VRML Tuesday morning squeeze from $4 to $5, big 30% drop off from $5
Shorting into VRML’s Wednesday strength for a solid 15% price drop, which I posted play-by-play HERE, HERE and HERE
Basically, there is a high degree of predictability down here with the gutter stocks, buuuuut only in certain cases so you must learn about the variables so you can adapt to profit from those worthy opportunities. That is what my DVD focuses on, the variables that align to create these patterns, then I detail dozens of charts, then I share trading lessons learned. It’s elementary, but simple works best in this niche.
I’ve worked my ass off creating these products to give you a foundation off which to build so no, I’m not your normal patient polite trading coach cuz I have something that is unique, something that really works. Ask any of those polite professional “experts” to blog every second, answer questions and face up to all criticisms. They won’t. They can’t. they are snake oil selling scum. Advantage Sykes.
Below is a small clip…PS to all of you guys emailing me, don’t add to the clutter that is my email box with some whiny emails asking why I haven’t gotten back to you, I’m friggin 2 weeks behind cuz only a few of you are using the FORUMS like I asked!
Tags: DVD, DVD Reviews, pennystocking
