How To Short Sell Penny Stocks Safely: Three Quality Short Trades

Judging by the posts, we’re all making money lately. Good, I don’t know of any other site with such high percentage of people profiting…especially when none of us are very smart or experienced. I think it’s cuz my impatience has taught you guys to take your profits or losses quickly cuz you’re trading the most volatile stocks around. Yes, you should let your winners run, but that’s not as important as knowing you should never ever let your losers run, no matter what your meaningless little mind thinks. (If I don’t cut your egos down to size, the market will, which do you prefer?)

First up, I shorted 500 NTI into the market close of its first truly down day on Monday. Volume had faded, Superman’s posts on TheLion.com stopped being responded to as often—basically the hype was dying down so my $13.70 entry point looked ideal. Pre-market Tuesday brought the usual 100 share painting-the-tape games, up $2, down $1, all meaningless. When the stock opened, it was down 20-50 cents, the range being the ridiculous price spread on such an illiquid stock. I wanted it to crack $13 or at least get close so I put in my order to buy at $13.01, which woulda been a $350 profit…never got there, not even close. A massive (sarcastic) buying wave of 3,000 shares took it up to the $14.50-$15 range and I thought about covering for a big loss…but I waited—it was just 1-2 orders! Volume faded and the stock gradually dropped, when a big sell order came in, I decided to get out and not risk another massive (sarcastic) buying wave to squeeze me for $1/share…no, I covered at $13.77, for a $50 loss. Good loss. No, it was a great loss. The rest of the day volume continued to be anemic, as it was today, very few orders executed below my price, now it’s just consolidating, could go either way…great, great loss cutting.

Lesson: If a big gain does not seem likely, don’t worry about being up or down a few cents, just get out—you don’t want to risk a big loss when the reward ain’t there.

Today, I had a lot on my radar, wanted to short SPDE, GRO and ROYL, reserving shares of each just in case, but I knew I’d be limited by SEC Bin Laden.

ROYL was the first to drop, but considering I knew all too well about morning spikes on oil plays, I was too hesitant. SPDE the same problem. No guts no glory. That left GRO, which was the only one to squeeze the shorts hard, up nearly $1 to $8.20…again, I wanted to short, but I didn’t want to risk a squeeze to $9…so I waited. After cursing my need to play it safe, I watched it break morning support at $7.40, on its way to $7.25. Patience, I told myself, if it’s gonna reverse big, it probly won’t go straight down…reason won and it hung around—just below—the former support, now resistance $7.40, which is ideal, so I tried shorting 800 shares at $7.37…only 500 executed, damn!

Stock dropped back to $7.25, tried to bottom there, bounced back up to entry price (I canceled my remaining shares to play it extra-safe) and then fell back to the $7.20 area. 20 minutes later, it got tired of being up only 10 cents on the day and then the tank was on…big sell orders pushed it negative to the $7.07 area, hung around there for a few minutes, then a massive 40,000 share market sell order came in and took out the buyers at $7…then stop loss orders did the rest, I covered into the panic at $6.91, even if I missed riding the full wave down to $6.80….profit of only $230, but it was a small trade—since it still wasn’t the afternoon, which woulda been ideal—and it was all inside of an hour.

More importantly, other site readers followed me in on that play, as they were plenty of shares available, Bob took an easy quarter/share, Moates made a cool $900 in an hour (those be Sptizer-type rates!) and $1500 today, LM showed us how it’s down by profiting $1.50/share!, Davey profited $300 by grabbing nearly 50 cents/share, while Cody and getshorty each made about 80 cents/share

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I’m not making this stuff up, I’m not leaving any losers out (see for yourself), it really is that easy to short into big reversals and that’s why you guys neeeeeed my PennyStocking DVD to be better prepared for these patterns (and to stop asking e questions answered in this 6-hours-of-me-explaining-this-stuff thing. Hell, you don’t even have to short sell, one of the first people to buy the DVD, Tony Ellis, made a cool $3,860 (minus $50 in commissions LOL) going long these kinds of momo plays today alone and he’s up $50,000 since the beginning of the year!!!

You show me another financial product on the market that has such results without an leverage…if I was a fraud/snakeoil salesman, I would probly just make up these numbers, but each day brings new plays and gains so you just gotta stick around and see for yourself…in real-time.

Not content with just that little profit, I was also watching PTEK, which was up a ton on message board hype, World Series of Poker hype, whatever, the chart told me it was junk and you gimme a junkie that’s up 150% in a few days with fading volume and a wall of sellers and I get interested real fast. Oh yeah, I’d reserved shares earlier in the day, just in case—a good habit to get into. I patiently waited until the afternoon and when I saw a slight crack, I tried shorting 600 shares—not a full position cuz it was still up on the day aka if it didn’t tank, that’d leave the door open to late day spike or early morning squeeze tomorrow…got 500 shares at $5.15, immediately it went down to $5 x $5.13, I felt good. But $5 held, I got my other 100 shares and the thing spiked to $5.10 x $5.33 on something like 1,000 shares…total joke that didn’t last very long, $5 went and it dropped to $4.76 x $4.95…I put my limit at $4.61, but big buy blocks were everywhere in the $4.70s so I jut put a limit of $4.95—since there weren’t ANY stop losses at $5 (as there were on GRO at $7), there wasn’t a high probability that the few sellers could take out those big buy blocks in the $4.70s, no thanks, played it safe, got executed at $4.90, another $130 profit or so. Spike probable tomorrow.

Nearly $500 in profits for me today…that ladies and gentlemen is how you short sell penny stocks safely—no big positions, no big wins, no big losses, just bigger gains than losses. Good night and good luck

Posted in Good Trades, Patterns To Short, Safe Trades, Short Selling

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  • AlexH

    Love it!

  • AlexH

    Love it!

  • goingin60

    you got .50 on a GRO short when you coulda had near 100% gain in 6 trading days on a long

    http://thelion.com/bin/forum.cgi?cmd=read&sf=gro&msg=549

  • goingin60

    you got .50 on a GRO short when you coulda had near 100% gain in 6 trading days on a long

    http://thelion.com/bin/forum.cgi?cmd=read&sf=gro&msg=549

  • Mike_13th

    Add me to the GRO list + $650
    got $610 from SPDE
    got $302 from OMNI
    got $225 from SQNM
    got $370 from BSHF ( still holding short )
    got $308 from HEPH
    got $245 from ROYL
    got $710 from MVBY
    got $800 from PTEK long and $245 short
    got $112 from STKL

    Lost a total of $604 on BPUR IVAC ICOG KOG NNVC

    Total + $3323 ( and had a ball! )

  • Mike_13th

    Add me to the GRO list + $650
    got $610 from SPDE
    got $302 from OMNI
    got $225 from SQNM
    got $370 from BSHF ( still holding short )
    got $308 from HEPH
    got $245 from ROYL
    got $710 from MVBY
    got $800 from PTEK long and $245 short
    got $112 from STKL

    Lost a total of $604 on BPUR IVAC ICOG KOG NNVC

    Total + $3323 ( and had a ball! )

  • http://www.timothysykes.com timothysykes

    do whatever works for u, if u’ve read 400 blog posts of mine, u’d know i suck at going long

  • http://www.timothysykes.com timothysykes

    do whatever works for u, if u’ve read 400 blog posts of mine, u’d know i suck at going long

  • http://www.timothysykes.com timothysykes

    niiiiice mike!

  • http://www.timothysykes.com timothysykes

    niiiiice mike!

  • Tony Ellis

    Come on Tim. Don’t label me as a long only guy, lol. I posted last week that I made $3500 shorting FPP. I wanted to short the hell out of ROYL and GRO today but I don’t like having more than 3 positions open at once.

    Keep up the good work. Site improves everyday and I can’t wait for Livestock Friday!

  • Tony Ellis

    Come on Tim. Don’t label me as a long only guy, lol. I posted last week that I made $3500 shorting FPP. I wanted to short the hell out of ROYL and GRO today but I don’t like having more than 3 positions open at once.

    Keep up the good work. Site improves everyday and I can’t wait for Livestock Friday!

  • novalis78

    BTW, tim, what about a voice chat(room). Real-time exchange of information between all of us, that would be cool.

    @Mike: amazing!

  • novalis78

    BTW, tim, what about a voice chat(room). Real-time exchange of information between all of us, that would be cool.

    @Mike: amazing!

  • getshorty

    HI Mike, wow, great gains, in previous post you mentioned you love spam email, wish lists are you subscribed to, can you give us some websites to subscribe to this cheerleaders club?

    Would help a lot

  • getshorty

    HI Mike, wow, great gains, in previous post you mentioned you love spam email, wish lists are you subscribed to, can you give us some websites to subscribe to this cheerleaders club?

    Would help a lot

  • http://www.timothysykes.com timothysykes

    i know tony, just showing there are many ways to profit…

    voice chatroom, LOL, find me a sponsor so i can friggin afford all these high tech tools and you’re on…good luck trying to sell respected financial firms on the validity of short selling penny stocks!

  • http://www.timothysykes.com timothysykes

    i know tony, just showing there are many ways to profit…

    voice chatroom, LOL, find me a sponsor so i can friggin afford all these high tech tools and you’re on…good luck trying to sell respected financial firms on the validity of short selling penny stocks!

  • getshorty

    The 3 top headlines on bloomberg on energy:

    Oil Falls a Second Day as U.S. Fuel Supply Increase Signals Lower Demand Crude oil fell for a second day in New York on signs U.S. fuel demand is falling because of higher prices, causing stockpiles to increase.

    OPEC’s Crude Oil Output Rose 0.9 Percent in May, Bloomberg Survey Shows The Organization of Petroleum Exporting Countries increased oil production 0.9 percent in May as Iraqi output climbed to a pre-war high, a Bloomberg News survey showed.

    Venezuela Has Reserves to Boost Oil Sales to U.S., Ambassador Alvarez Says Venezuela, which plans to increase oil shipments to China by almost two-thirds this year, has enough reserves to raise crude oil deliveries to the U.S. in the future, said Bernardo Alvarez, Venezuela’s ambassador in Washington.

    As I said earlier, no more fuel for fuel pumpers, look closely for any crack down, still 200 short on fpp and 200 short on cred, will short more when it cracks.

  • getshorty

    The 3 top headlines on bloomberg on energy:

    Oil Falls a Second Day as U.S. Fuel Supply Increase Signals Lower Demand Crude oil fell for a second day in New York on signs U.S. fuel demand is falling because of higher prices, causing stockpiles to increase.

    OPEC’s Crude Oil Output Rose 0.9 Percent in May, Bloomberg Survey Shows The Organization of Petroleum Exporting Countries increased oil production 0.9 percent in May as Iraqi output climbed to a pre-war high, a Bloomberg News survey showed.

    Venezuela Has Reserves to Boost Oil Sales to U.S., Ambassador Alvarez Says Venezuela, which plans to increase oil shipments to China by almost two-thirds this year, has enough reserves to raise crude oil deliveries to the U.S. in the future, said Bernardo Alvarez, Venezuela’s ambassador in Washington.

    As I said earlier, no more fuel for fuel pumpers, look closely for any crack down, still 200 short on fpp and 200 short on cred, will short more when it cracks.

  • http://tfpoi.com Jay Zalowitz

    Hey, not all your readers even short, or for that matter buy penny stocks.

    I read your posts because i can analyze sectors based upon the hype generated tranferrence into penny stocks,

    for instance, when those oil stocks were surging in the penny market, i knew to buy dug

  • http://tfpoi.com Jay Zalowitz

    Hey, not all your readers even short, or for that matter buy penny stocks.

    I read your posts because i can analyze sectors based upon the hype generated tranferrence into penny stocks,

    for instance, when those oil stocks were surging in the penny market, i knew to buy dug

  • novalis78

    voice chatrooms are for free, tim:

    http://www.goteamspeak.com/

  • novalis78

    voice chatrooms are for free, tim:

    http://www.goteamspeak.com/

  • http://www.timothysykes.com timothysykes

    novalis, yes, but who’s gonna pay my legal bills when someone pumps up a stock in my chatroom?

  • http://www.timothysykes.com timothysykes

    novalis, yes, but who’s gonna pay my legal bills when someone pumps up a stock in my chatroom?

  • novalis78

    ;-)
    Would just be a cool thing…more eyes and ears to watch and share infos…

  • novalis78

    ;-)
    Would just be a cool thing…more eyes and ears to watch and share infos…

  • http://www.timothysykes.com timothysykes

    lots of cool stuff we can do, but the scumbags and idiots of this industry squash most of it…one step at a time we’ll get there

  • http://www.timothysykes.com timothysykes

    lots of cool stuff we can do, but the scumbags and idiots of this industry squash most of it…one step at a time we’ll get there

  • novalis78

    thanks tim for this great blog + project. see you tomorrow.

  • novalis78

    thanks tim for this great blog + project. see you tomorrow.

  • TommyTim

    GGC put it on your watchlist. This one could be spiking tomorrow based on the money flow I see on the 1 month chart.

  • TommyTim

    GGC put it on your watchlist. This one could be spiking tomorrow based on the money flow I see on the 1 month chart.

  • hottpotat0

    hey ladies-i did not wait as long to pull that trigger today on PTEK 5k @ $5.40 i am sitting on $1281. to the good-i think its going down tommorrow if not i will average up i have my buy stps set up all the way till $17 which when this thing halts i should make a tidy profit!
    now ROYL… late to the party it never ran to my expected price to short which was like 2500 shares@$13.10 it really fell apart though outta the gate -too bad you cant win them all-excellent work ladies!!! great job timmay soon you will be at 25k and the gloves come off!!!

  • hottpotat0

    hey ladies-i did not wait as long to pull that trigger today on PTEK 5k @ $5.40 i am sitting on $1281. to the good-i think its going down tommorrow if not i will average up i have my buy stps set up all the way till $17 which when this thing halts i should make a tidy profit!
    now ROYL… late to the party it never ran to my expected price to short which was like 2500 shares@$13.10 it really fell apart though outta the gate -too bad you cant win them all-excellent work ladies!!! great job timmay soon you will be at 25k and the gloves come off!!!

  • hottpotat0

    i wanna go long tomorrow where’s tha beef??? good tips rule larry livermore says so!!!

  • hottpotat0

    i wanna go long tomorrow where’s tha beef??? good tips rule larry livermore says so!!!

  • eb

    hott…what’s your analysis? Are you thinking ROYL will keep going down?

  • eb

    hott…what’s your analysis? Are you thinking ROYL will keep going down?

  • sykesbaiter

    “we

  • sykesbaiter

    “we

  • http://www.timothysykes.com Timothy Sykes

    good i don’t want people that can’t make $ here, if they cant take a little name calling, they’ll never make it as traders…no place for wussies, this is a battlefield

  • http://www.timothysykes.com Timothy Sykes

    good i don’t want people that can’t make $ here, if they cant take a little name calling, they’ll never make it as traders…no place for wussies, this is a battlefield

  • Mike_13th

    I pulled the trigger PTEK at 4.80 right where it was when i posted this in chatroom:

    (Jun 04-09:58) 13th_FLOOR: PTEK more today
    (Jun 04-09:59) 13th_FLOOR: from tims: Looking at PTEK BIOF ( heard it was a pump,not sure )tomorrow for red also to short/green go long
    (Jun 04-10:02) 13th_FLOOR: oh baby PTEK!
    (Jun 04-10:03) tristaina: PTEK holy cow,
    (Jun 04-10:03) 13th_FLOOR: hit 5
    (Jun 04-10:05) 13th_FLOOR: PTEK 5.44
    (Jun 04-10:10) timothysykes: u long PTEK?
    (Jun 04-10:10) 13th_FLOOR: yes

    The advantage of a live chat
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

    Getshorty,

    I get a bunch through the mail,honestly I don’t know why except I subscribed to Jason Fuller awhile back,cause his ones really tank,and I must have got on others mailing lists because that’s when they really started coming in to me.
    Plus the blog I post on ,Muddy’s,he has been around like 40 yrs trading and he can find anything,we are good friends and he sends me pumps he knows about.
    Plus i scan for 0 volume stocks (or ones that traded less than 1,000 shares just a few days ago )that have huge vol increases,then research those,you see those you almost have to know they are pumps.
    Like look at BSHF on 4/2 and 4/3,then on 4/15 it trades 800,000 then what happens,it trades off from 2.10 to 1.75,i know that was a pump cause i got an pump mailer on it before it tanked.
    SPDE same situation along with bunch of others over the last month.
    Hope this helps

  • Mike_13th

    I pulled the trigger PTEK at 4.80 right where it was when i posted this in chatroom:

    (Jun 04-09:58) 13th_FLOOR: PTEK more today
    (Jun 04-09:59) 13th_FLOOR: from tims: Looking at PTEK BIOF ( heard it was a pump,not sure )tomorrow for red also to short/green go long
    (Jun 04-10:02) 13th_FLOOR: oh baby PTEK!
    (Jun 04-10:03) tristaina: PTEK holy cow,
    (Jun 04-10:03) 13th_FLOOR: hit 5
    (Jun 04-10:05) 13th_FLOOR: PTEK 5.44
    (Jun 04-10:10) timothysykes: u long PTEK?
    (Jun 04-10:10) 13th_FLOOR: yes

    The advantage of a live chat
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

    Getshorty,

    I get a bunch through the mail,honestly I don’t know why except I subscribed to Jason Fuller awhile back,cause his ones really tank,and I must have got on others mailing lists because that’s when they really started coming in to me.
    Plus the blog I post on ,Muddy’s,he has been around like 40 yrs trading and he can find anything,we are good friends and he sends me pumps he knows about.
    Plus i scan for 0 volume stocks (or ones that traded less than 1,000 shares just a few days ago )that have huge vol increases,then research those,you see those you almost have to know they are pumps.
    Like look at BSHF on 4/2 and 4/3,then on 4/15 it trades 800,000 then what happens,it trades off from 2.10 to 1.75,i know that was a pump cause i got an pump mailer on it before it tanked.
    SPDE same situation along with bunch of others over the last month.
    Hope this helps

  • sonid

    seriously no one is ever going to make money every single day. You needa be able to take a little heat when you make stupid F*cking mistakes. I realize that and everyone else should to. Losses will happen. Cut em short and move on. Gains await you.

  • sonid

    seriously no one is ever going to make money every single day. You needa be able to take a little heat when you make stupid F*cking mistakes. I realize that and everyone else should to. Losses will happen. Cut em short and move on. Gains await you.

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  • http://www.timothysykes.com timothysykes
  • http://www.timothysykes.com timothysykes
  • STAPES 20

    I just need some quick info on short selling. I see alot of money being made from u guys obviously. I trade through my bank and When i place a trade i dont see anything about Short Selling. How and Where can i do short selling?

  • STAPES 20

    I just need some quick info on short selling. I see alot of money being made from u guys obviously. I trade through my bank and When i place a trade i dont see anything about Short Selling. How and Where can i do short selling?

  • Young Gunz

    TIm,

    I tried to sign up on your site but haven’t received my email with my initial password. Is it automated or do you ave to pull the trigger yourself. Its been about 24 hours.

  • Young Gunz

    TIm,

    I tried to sign up on your site but haven’t received my email with my initial password. Is it automated or do you ave to pull the trigger yourself. Its been about 24 hours.

  • http://www.timothysykes.com timothysykes

    stapes read my book or watch my dvd, they explain pretty much all u need to know:

    http://www.timothysykes.com/book

    http://www.timothysykes.com/dvd

    young gunz, try signing up again, sorry

  • http://www.timothysykes.com timothysykes

    stapes read my book or watch my dvd, they explain pretty much all u need to know:

    http://www.timothysykes.com/book

    http://www.timothysykes.com/dvd

    young gunz, try signing up again, sorry

  • sykesbaiter

    The problem is that you really aren’t a trader now are you? You are an educator/publisher. No one wants to have their teacher call them stupid, even if they are. What would you call someone that is starting a business but alienates a third to a half of potential customers? Revenue challenged!

    When “Pennystocking 101: The MarketKid Way! – only $199.95!” comes out in a few years and they treat their students with respect, they will drink a lot of your milkshake. You may think it’s “part of the market”, but most people will leave if there is somewhere else to go where they don’t get dumped on.

    An old expression is “You don’t poop where you eat”.

  • sykesbaiter

    The problem is that you really aren’t a trader now are you? You are an educator/publisher. No one wants to have their teacher call them stupid, even if they are. What would you call someone that is starting a business but alienates a third to a half of potential customers? Revenue challenged!

    When “Pennystocking 101: The MarketKid Way! – only $199.95!” comes out in a few years and they treat their students with respect, they will drink a lot of your milkshake. You may think it’s “part of the market”, but most people will leave if there is somewhere else to go where they don’t get dumped on.

    An old expression is “You don’t poop where you eat”.

  • http://www.timothysykes.com timothysykes

    who cares if i call people stupid, most people are, me included. u guys gotta grow thicker skin if you’re gonna play this game…and yes, i look forward to having others come out with instructional products, i’ll distribute and promote them!

  • http://www.timothysykes.com timothysykes

    who cares if i call people stupid, most people are, me included. u guys gotta grow thicker skin if you’re gonna play this game…and yes, i look forward to having others come out with instructional products, i’ll distribute and promote them!

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