As I cover in detail in my TIMtactics DVD (see useful study guide DVDs HERE), the January Effect is a great catalyst that can spike beaten down penny stocks.full of
Definitely study this phenomenon in depth, but long story short, weak stocks become weaker towards the end of the year due to tax loss selling (if you lose a lot of $ on a stock, it’s better to sell it in October, November or December so you can take the loss on your taxes come April of next year rather than waiting to sell in January of February and have to wait to take the tax loss for a whole year later) and so in January these stocks often spike very quickly.
I told mystudents and members of my longer term newsletter (coming to in March, get excited!) that MITK and ONVO were my top 2 long picks heading into 2013 (yes I do buy penny stocks, I specialize in short selling, but I made my first million buying, not shorting penny stocks).
Despite their choppiness, I absolutely was dead on right about both of them even though I only made roughly $10,000 between the two of them while had I simply held my positions from my original thesis I’d have made $85,000…you can see onmy students made roughly $25,000 on these two stocks so not too bad for a few days work!
See the pictures and the video below and realize I did this video a few days ago, before MITK and ONVO continued their ferocious January spikes…learn from these outstanding gains: