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5 Important Facts About Short Selling Penny Stocks

Posted by Timothy Sykes on Thu 13th of Nov, 2008 04:06:10 PM

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!

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  • 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
  • YngvaiMalmsteve
    All you have to do is go here:

    www.interactivebrokers.com/en/trading/SearchSho...

    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.
  • Boston
    YngvaiMalmsteve, how does IB do the request for shares to short? (As opposed to TOS's chat method.)
  • sfi is more boring than a sissy value investor bachelor party
  • 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%
  • 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)
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