CHATROOM

5 Important Facts About Short Selling Penny Stocks

November 13, 2008 at 4:06 pm
by Timothy Sykes

Watch these 7 free video lessons on how I became a millionaire

1. While I know most companies are frauds/going to fail, I don’t short indiscriminately because the main purpose of frauds/inevitable failures is to pump up their stock with aggressive and misleading news/PRs aka I don’t want to get squeezed!

2. Of course I get frustrated with the lack of freely available shares to short, but that’s PennyStocking’s gift and its curse. Welcome to the gutter!

3. Of course you can short under $5/share, brokers that say they cant just suck…I use and recommend Thinkorswim & Speedtrader

4. I don’t like shorting illiquid stocks, but sometimes stuff like OCCXD is just too easy.

5. It’s better to hold these frauds/inevitable failures long long time during bear markets, but I just don’t have the patience. I’m still up 177% in the last year so I think you gotta do whatever works best for ya!

Posted in Basics, Short Selling

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  • YngvaiMalmsteve

    I’m switching to Interactive Brokers from Thinkorswim. Much cheaper commissions and better availability of borrows (and you don’t have to pull up a chat window to get borrows)

  • YngvaiMalmsteve

    I’m switching to Interactive Brokers from Thinkorswim. Much cheaper commissions and better availability of borrows (and you don’t have to pull up a chat window to get borrows)

  • http://www.pennystockinvestment.info/5-important-facts-about-short-selling-penny-stocks/ » 5 Important Facts About Short Selling Penny Stocks » Penny Stocks Investing

    [...] market news by Timothy Sykes « Top 3 Stocks : PURO, CCTYQ, [...]

  • http://www.pennystockinvestment.info/5-important-facts-about-short-selling-penny-stocks/ » 5 Important Facts About Short Selling Penny Stocks » Penny Stocks Investing

    [...] market news by Timothy Sykes « Top 3 Stocks : PURO, CCTYQ, [...]

  • BDOG9SECLX

    SFI Tim reminds me of EVS what do you think? by the way coming up on covestor made 8 trades staarting with tim alerts 2 weeks ago up 22%

  • BDOG9SECLX

    SFI Tim reminds me of EVS what do you think? by the way coming up on covestor made 8 trades staarting with tim alerts 2 weeks ago up 22%

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

    sfi is more boring than a sissy value investor bachelor party

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

    sfi is more boring than a sissy value investor bachelor party

  • http://test.timothysykes.com Timothy Sykes
  • http://test.timothysykes.com Timothy Sykes
  • Boston

    YngvaiMalmsteve, how does IB do the request for shares to short? (As opposed to TOS’s chat method.)

  • Boston

    YngvaiMalmsteve, how does IB do the request for shares to short? (As opposed to TOS’s chat method.)

  • YngvaiMalmsteve

    All you have to do is go here:

    http://www.interactivebrokers.com/en/trading/SearchShortableStocks.php?cntry=usa&tag=United%20States&ib_entity=llc&ln=

    and look up the ticker and click “Check Availability” to see if there are shares available. It tells you exactly how many are available. If there are any available, all you have to do is sell the stock in IB’s software. It’s that easy. And if you want to reserve the shares for later in the day, simply put your limit order in much higher than the current price so that your order doesn’t execute.

  • YngvaiMalmsteve

    All you have to do is go here:

    http://www.interactivebrokers.com/en/trading/SearchShortableStocks.php?cntry=usa&tag=United%20States&ib_entity=llc&ln=

    and look up the ticker and click “Check Availability” to see if there are shares available. It tells you exactly how many are available. If there are any available, all you have to do is sell the stock in IB’s software. It’s that easy. And if you want to reserve the shares for later in the day, simply put your limit order in much higher than the current price so that your order doesn’t execute.

  • bdog

    yea ur right TIV made me pass %27 now in 9 days ill be a succes story soon timmay
    not bad for half way through the month im on covestor chaing ya

  • bdog

    yea ur right TIV made me pass %27 now in 9 days ill be a succes story soon timmay
    not bad for half way through the month im on covestor chaing ya

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