How To Turn \$1,000 Into \$3.3 Million Short Selling Penny Stocks - Timothy Sykes

# How To Turn \$1,000 Into \$3.3 Million Short Selling Penny Stocks

No joke, this is an email I got the other day, the name and ticker has been deleted to protect the guy from getting his ass beaten:

hi tim, i have been wondering about short selling penny stocks forever and to me it makes complete sense. i just came across an article “How To Short Sell Pumped Up Penny Stocks” on yahoo.com via tradingmarkets.com and came across your name.

this is what i had in mind…as this example is a public stock that a group of friends on mine started up

stocker ticker: XXXX
issued at 2 dollars a share on 9/05/2007
currently trades at 0.0006 (july 24 2007)

lets say i shorted 500 shares of this stock on 9/05/2007{1000 dollar initial investment)

For the next few days i decide to buy my stock(get out of it) at an average price of .0006 cents a share.

The question i have to ask for you, would my profit from beginning til now be roughly 3.3 million.

This is my reasoning. I sold 500 shares at 2 dollars and its now worth .0006 cents a share. It has lost a value of 3333 times its initial value (which is good for me because i shorted the stock). So i took that 3333 and multiplied it by my initial investment of 1k. Now is my logic correct and did i just make 3.3 million in this hypotheticl but real life scenerio?

Wow. WTF kind of f\$%^&ed up up thinking is this? Does that mean you can make \$6.6 million off a \$2,000 investment? Screw it, maybe you wanna make \$33 million off a \$10,000 investment? Hell, why do we even need to stick to any mathematical rules whatsoever–you should be able to turn \$1 into \$1 billion through short selling penny stocks, right? Sure, why not!

When I say the world knows sooooooooooooo little about short selling, let alone short selling penny stocks, this is what I’m talking about. You cannot imagine how friggin confused/uneducated/dumb people there are–it’s not all their fault–much of it is due to the trading “teachers”/”coaches” being uniformly fraudulent/incompetent and the fact that some people just aren’t meant to have any money whatsoever.

People please get my PennyStocking DVD package, it’s been known to prevent cases like the one listed above.

For the record, in order to calculate one’s short selling profits, you take entry price (the price at which you short sell your shares) minus your exit price (the price at which you buy to cover) multiplied by the number of shares you have…so in this case, it’d be \$2 – \$.0006 x 500 shares = \$999.70 and then you pay some commissions. It’s a great little strategy, but it’ll take lots of pumps and dumps to turn a few thousand into a few million…

Posted in Basics, idiots

#### Become a Millionaire

I Turned \$12,415 into \$4,601,000 Trading Penny Stocks. Now it's your turn.

## one comment

Timothy Sykes

Hey Everyone,

As many of you already know I grew up in a middle class family and didn't have many luxuries. But through trading I was able to change my circumstances --not just for me -- but for my parents as well. I now want to help you and thousands of other people from all around the world achieve similar results!

Which is why I've launched my millionaire challenge. Iām extremely determined to create a millionaire trader out of one my students and hopefully it will be you.

So when you get a chance make sure you check it out.

PS: Don't forget to check out my free Penny Stock Guide, it will teach you everything you need to know about trading. :)

1. YoungGunz

OMFG, how fucking hard is it to google how short selling works. Wikipedia explains it pretty clearly. Why some people are so compelled to email someone else a question that they figure out in about 5-mins. on google.

2. YoungGunz

OMFG, how fucking hard is it to google how short selling works. Wikipedia explains it pretty clearly. Why some people are so compelled to email someone else a question that they figure out in about 5-mins. on google.

3. getshorty

You are a kind soul for not putting his name… I can imagine people putting his house on fire.

4. getshorty

You are a kind soul for not putting his name… I can imagine people putting his house on fire.

5. getshorty

20 000 shares of pgti have changed hands during the last hour with the price fixed at 5.40…… looks like accumulation before taking off? any seasoned technical analyst around?

6. getshorty

20 000 shares of pgti have changed hands during the last hour with the price fixed at 5.40…… looks like accumulation before taking off? any seasoned technical analyst around?

7. pwr_Hustla

Hi Tim,I literally fell out of my chair when I saw this, You have got to be kidding me, Look Im a newbie investor and Tim is trying to teach us strategies, but common sence and looking stuff up on google is elementary… WOOOOOOOOOW

8. pwr_Hustla

Hi Tim,I literally fell out of my chair when I saw this, You have got to be kidding me, Look Im a newbie investor and Tim is trying to teach us strategies, but common sence and looking stuff up on google is elementary… WOOOOOOOOOW

9. RJ

Max gain shorting \$2 is \$2 per share. 500 shares = \$1000.
Max loss = infinite.

I’m guessing Tim tells all how to put stops to prevent a massive loss.

Imagine having shorted Walmart or McDonald’s when they IPOed.

10. RJ

Max gain shorting \$2 is \$2 per share. 500 shares = \$1000.
Max loss = infinite.

I’m guessing Tim tells all how to put stops to prevent a massive loss.

Imagine having shorted Walmart or McDonald’s when they IPOed.

11. manny the trader from cancun

TIMM REV IS A SUPERNOVA PATTERN, if you study the statastics you can see is gonna break out on friday or tuesday,, maybe a quick 35%.

THE ONES you like REAPER.

12. manny the trader from cancun

TIMM REV IS A SUPERNOVA PATTERN, if you study the statastics you can see is gonna break out on friday or tuesday,, maybe a quick 35%.

THE ONES you like REAPER.

13. Alex

shorty – going back to your stop getting picked…it once happened to me too and I never even saw the bid go down to it…some market maker just swooped down about .20 or so and took my stop order….I remember it was still a little bit profitable trade cuz I had raised the stop but I was still pissed cuz thanks to that happening i ended up missing .50 or so. It’s sooo easy for them to do that in illiguid stocks esp. AMEX or OTC because there’s little accountability and little transparency. Stops are really better and safer to use with liquid NYSE or NASQ stocks. With less liquid stocks I like to use a limit stop where I can set the trigger price and the limit price….you can set the limit price a little below the trigger price and it’s rare that they’ll skip your stop. With a pure limit stop where the limit price is the trigger price, you can easily get skipped if only one order fills at the trigger price and then the bid drops.

One of my trading strategies is to try to buy some of those orders…when the MMs “swoop” down and the stops go off. A classic example today is ARNA – it was in a 2-3 month perfect uptrend so there’s guaranteed to be tons of stops anong a trendline and along the 20-day MA…so I would attribute the big dip today to stop orders mostly rather than anything bad…there’s a good decent chance the uptrend will pick right up again. Same thing happened with HCKT the other day….strong uptrend, slight dip gets bigger as stops go off and you have a buying opportunity…went from \$5 to \$6 in a 2-day cycle.

14. Alex

shorty – going back to your stop getting picked…it once happened to me too and I never even saw the bid go down to it…some market maker just swooped down about .20 or so and took my stop order….I remember it was still a little bit profitable trade cuz I had raised the stop but I was still pissed cuz thanks to that happening i ended up missing .50 or so. It’s sooo easy for them to do that in illiguid stocks esp. AMEX or OTC because there’s little accountability and little transparency. Stops are really better and safer to use with liquid NYSE or NASQ stocks. With less liquid stocks I like to use a limit stop where I can set the trigger price and the limit price….you can set the limit price a little below the trigger price and it’s rare that they’ll skip your stop. With a pure limit stop where the limit price is the trigger price, you can easily get skipped if only one order fills at the trigger price and then the bid drops.

One of my trading strategies is to try to buy some of those orders…when the MMs “swoop” down and the stops go off. A classic example today is ARNA – it was in a 2-3 month perfect uptrend so there’s guaranteed to be tons of stops anong a trendline and along the 20-day MA…so I would attribute the big dip today to stop orders mostly rather than anything bad…there’s a good decent chance the uptrend will pick right up again. Same thing happened with HCKT the other day….strong uptrend, slight dip gets bigger as stops go off and you have a buying opportunity…went from \$5 to \$6 in a 2-day cycle.

15. Alex

MikeY – I’m still in PDO … it’s not a good daytrade anymore but I’m staying in cuz it’s still a good swing trade setup – it’s still green on the day and it’s looking like it will form a bullish engulfing candle. And there should be plenty of shorts to squeeze out of it.

16. Alex

MikeY – I’m still in PDO … it’s not a good daytrade anymore but I’m staying in cuz it’s still a good swing trade setup – it’s still green on the day and it’s looking like it will form a bullish engulfing candle. And there should be plenty of shorts to squeeze out of it.

17. Alex

shorty – watch ARNA the rest of the week – betcha it gets back to at least \$6.4 – stop-loss trigger-fest brought it down – **they reported earnings today but I don’t think it could be viewed as bad…it was what everyone should have expected. The beauty of a trade like ARNA is the huge risk/reward ratio – you could use 1:4 or even 1:5 for that…looking fairly good itraday – slight uptrend after the morning plunge

18. Alex

shorty – watch ARNA the rest of the week – betcha it gets back to at least \$6.4 – stop-loss trigger-fest brought it down – **they reported earnings today but I don’t think it could be viewed as bad…it was what everyone should have expected. The beauty of a trade like ARNA is the huge risk/reward ratio – you could use 1:4 or even 1:5 for that…looking fairly good itraday – slight uptrend after the morning plunge

19. Alex

I might be stuck in VNDA for awhile. Right now I’m breakeven but I don’t really want to sell the shares cuz I think it has the potential to gain 50%-100%

20. Alex

I might be stuck in VNDA for awhile. Right now I’m breakeven but I don’t really want to sell the shares cuz I think it has the potential to gain 50%-100%

21. getshorty

Downtrending stock giving back its dead cat bounce, I think you’ll be grateful you didn’t have money to buy it. I ain’t touching that crow.

22. getshorty

Downtrending stock giving back its dead cat bounce, I think you’ll be grateful you didn’t have money to buy it. I ain’t touching that crow.

23. rr

If you shorted a 500 shares of XYZ at \$2 per share (\$1000) and then XYZ went to \$0.00006, you would make 99.97%.

[(500*\$2)-(500*.0006)]/\$1000=.9997*100%

24. rr

If you shorted a 500 shares of XYZ at \$2 per share (\$1000) and then XYZ went to \$0.00006, you would make 99.97%.

[(500*\$2)-(500*.0006)]/\$1000=.9997*100%

25. getshorty

Rev looks supernovish, reserving just in case it reverses by the end of the day, maybe if I hadn’t had that bjgp loss earlier would have some balls to go long, not now.

26. getshorty

Rev looks supernovish, reserving just in case it reverses by the end of the day, maybe if I hadn’t had that bjgp loss earlier would have some balls to go long, not now.

Funny stuff!

On a realistic note…

I told Tim I would detail my trades (and yes I’m signed up through Covestor), to support the TIM business model. Today, I made my first trade, with real money, and want to share with you how it turned out, and the lesson I learned from it.

For the record it was not one of Tim’s picks and it wasn’t a short play either.

The ticker was (ILE) – Huge pre-market hype; ILE was up 140% before the market opened. I watched it from 6:30 AM PST (market open) to 6:41 AM PST. I saw someone post in the GOTS chatroom @ 6:37 AM PST, that (ILE) broke its HOD, so I decided (or convinced myself) that I would/could ride the breakout momo train for \$.40 to \$.60 cents/share.

Well, my ENTRY point was excellent! I bought 1,000 shares at \$1.815. I watched the chart for a solid 10 minutes go sideways, with little fluctuation. It bounced back and forth \$.05 to \$.10 cents. I kept telling myself that it would go up…

As I caught myself hypnotized by this lack of movement, I started to get a tightness in my chest, kind of like when you`re getting ready to go on stage to perform or speak in front of a large group of people. My mind started fucking with me a bit… I got

Funny stuff!

On a realistic note…

I told Tim I would detail my trades (and yes I’m signed up through Covestor), to support the TIM business model. Today, I made my first trade, with real money, and want to share with you how it turned out, and the lesson I learned from it.

For the record it was not one of Tim’s picks and it wasn’t a short play either.

The ticker was (ILE) – Huge pre-market hype; ILE was up 140% before the market opened. I watched it from 6:30 AM PST (market open) to 6:41 AM PST. I saw someone post in the GOTS chatroom @ 6:37 AM PST, that (ILE) broke its HOD, so I decided (or convinced myself) that I would/could ride the breakout momo train for \$.40 to \$.60 cents/share.

Well, my ENTRY point was excellent! I bought 1,000 shares at \$1.815. I watched the chart for a solid 10 minutes go sideways, with little fluctuation. It bounced back and forth \$.05 to \$.10 cents. I kept telling myself that it would go up…

As I caught myself hypnotized by this lack of movement, I started to get a tightness in my chest, kind of like when you`re getting ready to go on stage to perform or speak in front of a large group of people. My mind started fucking with me a bit… I got

29. ddigia1

That’s great. Pretty crazy. This person should consider taking a basic math course at a community college before diving in to any type of trading. LOL Thanks, this article put a smile on my face.

30. ddigia1

That’s great. Pretty crazy. This person should consider taking a basic math course at a community college before diving in to any type of trading. LOL Thanks, this article put a smile on my face.

31. Bob (VC)

Wow, that is fantastic reasoning. I was going to ask you about something like that too Tim.

Lets say I short sold 2 shares of GOOG at \$500 (\$1000 initial investment). 50 years from now Google is no longer relevant and they are about to go out of business-THEN a conglomerate of super-models sues the company for all the nudie pics they served up though their image search with out the models permission. A judge awards damages totaling \$100000000000000.. Now I’m not going to do all that fancy math, but if I covered then, wouldn’t I be worth like one hundred trillion dollars?!?!?

32. Bob (VC)

Wow, that is fantastic reasoning. I was going to ask you about something like that too Tim.

Lets say I short sold 2 shares of GOOG at \$500 (\$1000 initial investment). 50 years from now Google is no longer relevant and they are about to go out of business-THEN a conglomerate of super-models sues the company for all the nudie pics they served up though their image search with out the models permission. A judge awards damages totaling \$100000000000000.. Now I’m not going to do all that fancy math, but if I covered then, wouldn’t I be worth like one hundred trillion dollars?!?!?

33. getshorty

Reaper, not checking the finance.google.com page, that is what is wrong with me. Too focused on the chart, would look at finance.google.com right after I see an interesting chart from now on. And this time I mean it.

34. getshorty

Reaper, not checking the finance.google.com page, that is what is wrong with me. Too focused on the chart, would look at finance.google.com right after I see an interesting chart from now on. And this time I mean it.

35. YoungGunz

Well, hopefully there will be some better plays tomorrow. what a boring week. Had all kinda of fun with USS and now nothing has really been wanting to develop.

36. YoungGunz

Well, hopefully there will be some better plays tomorrow. what a boring week. Had all kinda of fun with USS and now nothing has really been wanting to develop.

37. Alex

shorty and stylekid – you guys are right that ARNA is a long-term downtrend, but the short-term uptrend has been strong…the bulls will try to take it back up. It’s not a high probability trade like a Tim trade, but it’s very high reward to risk trade. Just look at HCKT…it’s exactly the same kind of reaction I’d bee looking for. However, the way ARNA dropped at the close was not very bullish.

38. Alex

shorty and stylekid – you guys are right that ARNA is a long-term downtrend, but the short-term uptrend has been strong…the bulls will try to take it back up. It’s not a high probability trade like a Tim trade, but it’s very high reward to risk trade. Just look at HCKT…it’s exactly the same kind of reaction I’d bee looking for. However, the way ARNA dropped at the close was not very bullish.

39. pwr_Hustla

I first started trading fake shares on investopedia, and the first thing i learned is Patience. Don’t worry noobtrader.08 it happens.

40. pwr_Hustla

I first started trading fake shares on investopedia, and the first thing i learned is Patience. Don’t worry noobtrader.08 it happens.

41. TIM Sykes

i might be shorting the next GOOG, its doubtful, but its possible–doesnt matter, i just go into these guys for the pattern, not longterm

42. TIM Sykes

i might be shorting the next GOOG, its doubtful, but its possible–doesnt matter, i just go into these guys for the pattern, not longterm

43. Bob (VC)

What? Is that in response to me? You know that was an attempt at humor (albeit a bad one) right..

Tims not even reading the posts anymore, he’s just scanning them so he can get back to his girlfriend… Me thinks Timmay’s in love.. š

Just messin wit ya Tim

44. Bob (VC)

What? Is that in response to me? You know that was an attempt at humor (albeit a bad one) right..

Tims not even reading the posts anymore, he’s just scanning them so he can get back to his girlfriend… Me thinks Timmay’s in love.. š

Just messin wit ya Tim

45. Bob (VC)

Assuming you’re really Tim’s girlfriend, I have one piece of advice. Don’t ever go on LiveStock, the jackals in the chat room can be vicious!!

46. Bob (VC)

Assuming you’re really Tim’s girlfriend, I have one piece of advice. Don’t ever go on LiveStock, the jackals in the chat room can be vicious!!

47. vo

I do the math this way:

\$2 sold price
\$.0006 cover price

Profit per share is then \$2 – \$.0006 = \$1.9994

Multiply that by 500 shares and you’ve got \$999.70, not including commissions and margin expenses on the short.

Not sure how he ever considered his \$1000 as an “initial investment”–definitely he’s confused as to what shorting is.

Lord help him if he ever gets into writing calls and buying puts! Ha ha ha.

48. vo

I do the math this way:

\$2 sold price
\$.0006 cover price

Profit per share is then \$2 – \$.0006 = \$1.9994

Multiply that by 500 shares and you’ve got \$999.70, not including commissions and margin expenses on the short.

Not sure how he ever considered his \$1000 as an “initial investment”–definitely he’s confused as to what shorting is.

Lord help him if he ever gets into writing calls and buying puts! Ha ha ha.

49. Bob (VC)

dreamgirl (nice screen name by the way.. Confidence is a good thing š )- don’t get me wrong, I would love to e-meet you on LiveStock, but I have your best interest in mind. If you do decide to come on, DO NOT, I repeat DO NOT, take anything anyone there says to heart. That includes my comments as well…

50. Bob (VC)

dreamgirl (nice screen name by the way.. Confidence is a good thing š )- don’t get me wrong, I would love to e-meet you on LiveStock, but I have your best interest in mind. If you do decide to come on, DO NOT, I repeat DO NOT, take anything anyone there says to heart. That includes my comments as well…

51. Pingback: | TIM - Timothy Sykes

52. Pingback: | TIM - Timothy Sykes

53. Miss Kelli Taylor

My name is Miss Kelli Taylor. I honestly truthfully truly really do wishes that I

could turn my pennies into ten thousand dollars by collecting pennies in my

entire life period (100) percent.

54. Miss Kelli Taylor

My name is Miss Kelli Taylor. I honestly truthfully truly really do wishes that I

could turn my pennies into ten thousand dollars by collecting pennies in my

entire life period (100) percent.

55. B guy

Here is his real plan… 1 million clueless people x \$1 a day. End of week Profit = \$7,000,000! Come on people if he is that rich from all his trading, and wants to share the world his “secret” why not tell us on this page for free…

56. B guy

Here is his real plan… 1 million clueless people x \$1 a day. End of week Profit = \$7,000,000! Come on people if he is that rich from all his trading, and wants to share the world his “secret” why not tell us on this page for free…

57. Pingback: How to Buy Stocks Direct

58. Pingback: How to Buy Stocks Direct