7 Steps To Making $7,000 In A Day Like I Did Friday

URGENT: I’m now up $11,000+ in 2 days shorting these pumps that are straight out of my DVDs…as my trading challenge students know…I LOVE IT!

Please read this post entirely, you’re only hurting yourself until you get these steps through your brains!!!

My trading challenge students know I had a great Friday between these two trades HERE and HERE…and I have another $1,000 or so in unrealized gains.

You can see how I celebrated in the moment as I was pretty pumped up…and I wish more of you could get to experience that amazing feeling.

Here are some steps to achieve that goal:

1. Apply for my trading challenge because it’s the single best educational tool for aspiring traders…get motivated by these videos:

2. Have the right broker…I used two different brokers to short these pumps…both are recommended in my list of the best brokers for penny stock trading.

HGSH Pump And Dump

CADC Pump And Dump

3. Understand the superior risk/reward of betting against stocks that are spiking that have been promoted in the past…HGSH has been promoted multiple times and my guess is those promoters still have some shares left so they need to re-pump it so they can sell into strength. This is a great article on HGSH’s past promotions and I’d bet you those promoters have something to do with this latest spike…is it really coincidence that it’s been roughly a year since those promotions, typically when restricted stock becomes sellable?

Definitely read my blog post about the penny stock pump and dump which collapsed 80%+ in 4 days and how their investor relations team acknowledged that some shareholders could finally “diversify their portfolios”, which is hilarious given that it was just a firesale and insiders began dumping en masse…from which the stock NEVER came back.

4. An even better opportunity is when the pumped up stock is about to be delisted due to the stock price not being high enough…a PERFECT excuse for insiders and promoters to do what they can to get the stock price high enough just before such a delisting takes place…this was a key SEC filing from HGSH that very few people read…my trading challenge student and now teacher Mark Croock sent it to me:

Item 8.01. Other Events.

In a letter dated July 18, 2012, The NASDAQ Stock Market LLC (“NASDAQ”) notified China HGS Real Estate, Inc.. (the “Company”) that it is eligible for an additional 180-day period, or until January 14, 2013, to regain compliance with the Minimum Bid Price Requirement (as defined below). In connection with the grant of the additional 180-day period, the listing of the Company’s common stock was transferred at the Company’s request to the NASDAQ Capital Market under the existing ticker symbol (HGSH) at the opening of business on July 20, 2012.

On January 18, 2012, the Company had received a letter from NASDAQ stating that for 30 consecutive business days immediately preceding the date of the letter the Company’s common stock did not maintain a minimum closing bid price of $1.00 per share (“Minimum Bid Price Requirement”) as required by NASDAQ Listing Rule 5550(a)(2). The Company was provided 180 calendar days to regain compliance.

In the July 18,2012 letter, NASDAQ stated that although the Company had not regained compliance with the Minimum Bid Price Requirement by July 18, 2012, it is eligible for an additional 180-day compliance period, or until January 14, 2013, based on the Company meeting the continued listing requirements for market value of publicly held shares and all other applicable standards for initial listing on the NASDAQ Capital Market (except for the Minimum Bid Price Requirement) and having notified NASDAQ of its intention to cure the deficiency during the second compliance period by effecting a reverse stock split, if necessary.

If compliance cannot be demonstrated by January 14, 2013, NASDAQ will provide written notification that the Company’s securities will be delisted.

5. Even better than shorting the biggest pump which was HGSH, the risk is far less shorting sympathy plays like CADC and BWOW…Interactive Brokers had 700,000 shares to short of CADC when it was trading at 90 cents/share – $1/share before it dropped to the 50 cent/share area later Friday when the wind was coming out of HGSH too…I made $2k on $18k investment shorting at roughly 87 cents/share and I totally covered too soon at .77ish, missing out on another $4k later in the day…I did not time it properly, but I still had a great profit.

6. Be ready for these pumps when they come about…if you’re prepared you can strike, if not, you waste the opportunity…I’m so glad several subscribers of my 4 newsletters also banked on the long side of these plays so it’s not just about shorting….of course my top student who is now up $600,000+ also made $10,000+ here, he was locked and loaded…are you?

7. Watch these 30 of my best penny stock video lessons now…memorize them, speak about them with your friends, family and kids…these are the kinds of lessons that are life changing as I have roughly a dozen trading challenge students who have now made $100,000+ with these very patterns…all on the path to becoming millionaires.

Posted in Basics, Short Selling Penny Stocks

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  • HLNet

    Are you playing HGSH today?

  • HLNet

    Nevermind, misread a chart…oops.