Tag Archives: Basics

Exposing Wall Street’s Biggest Secret

secret formula copy

URGENT: Contact us HERE to save 80% off by being on the earlybird list for my upcoming October conference…see video explaining HERE

Given that I’m up 135% halfway through 2014 (see all trades HERE) even as the overall stock market indices are barely up 5-10% YTD, people now more than ever ask me “what the hottest stocks right now?” At any one time, there usually there aren’t any, but right now there are these two so get to know them well. Continue reading

The Penny Stock That Killed The Analyst

You’ve heard the song “Video Killed the Radio Star” so you will understand how one penny stock has made a mockery of financial analysts/commentators who are at a loss to describe/research it.

Take a look at the headlines:

Wall St. Journal: “A Social Network With No Members, but a $6 Billion Valuation”

CNBC: “Penny stock soars to $6B, and even the auditor is perplexed

Motley Fool: “The Greatest “Greater Fool” Story of 2014″

MSN Money: “Mysterious penny stock soars, and no one knows why”

CNN Money: “Cynk Technologies stock soars 25,000%. No one knows why” (title has since been adjusted probly due to my interview with them in which I explained EXACTLY why…get excited for this coming week)

Seeking Alpha: “Cynk Technology Is The New Scheme In Town”

TheStreet.com: “Where are the Cops?”

Businessweek: “Cynk Is a Joke, Not Proof of a Bubble”

Bloomberg: Video “What’s Behind Cynk Technologies 24,000% Surge?”

Zerohedge 1st headline: “Market Top? Meet The $1 Billion Company With Zero Revenues” and 2nd story: “Pure Madness: Revenueless, Assetless CYNK Soars Over $5Bn”

Huffington Post: Tech Company That May Not Exist Is Worth $5 Billion

Mashable: The Curious Case of Cynk, an Abandoned Tech Company Now Worth $5 Billion

Daily Mail: “The $5billion tech start up whose stock has gone up 30,000 per cent in ONE MONTH may not even exist”

Those are just 12 out of the 238 stories that have been written in the past few days about CYNK, a third rate penny stock promotion that simply caught early shorts in a squeeze thus creating a solid Supernova pattern that you see here:

cynk promo chart

As I said in an interview with CNBC here late Friday, “Whether or not there is fraudulent activity going on with CYNK—it’s such a fine line. But the promoters will be investigated, they’ll pay a small fine, and the game will go on”.

I also wrote a solid blog post HERE on CYNK and made 2 video lessons:

And that’s the truth from someone who, unlike these charlatans, actually understands the penny stock game — CYNK is a typical stock promotion that went a little further than most due to catching early shorts off-guard, but it’s not the first nor the last…look at some other promotion charts that were much more volatile, and liquid, and NEVER ONCE covered by the media who are only now realizing how exciting these stories can be:

up

Pump And Dump

Pump And Dump

lote 20 days remarkable copy

jamn

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cann crash

Other financial commentators have labeled CYNK as “garbage”, “ludicrous”, “sign of a market top”, “absurd”, “something to avoid entirely”, on and on and on as if CYNK were the devil himself and yet even after the initial hate articles which dropped the stock to $10ish the morning after it closed at $14/share…somehow…yes somehow…evil bad joke CYNK spiked 100%+ over 3 hours from $10ish to $22ish!

Investors everywhere would kill to make 100%+ in a year NEVER in a million years dreaming that it could be accomplished all within a few hours if you have the right penny stock setup.

And that’s the beauty of penny stock trading — it’s not as unpredictable or random or laughable or evil or illegal as everyone thinks, it’s QUITE predictable and repetitive as those who have watched my free video lesson series now know.

The main reason why so many of these commentators and “experts” hate on penny stock is because they don’t understand the rules and it makes them look bad to expose that weakness.

Penny stocks kill analysts/commentators so they try with all their might to get people to avoid them.

But as my booming educational business which is set to pull in $10+ million in 2014, there is demand here and you can’t squash a useful industry even if it is a niche industry because there’s far too many people out there with accounts between $1,000-$50,000 that don’t care AT ALL to make 10-20%/year like all the “experts” strive for, the average trader/investor wants more and to do that they’re willing to take on some additional risk at the hope it might change their lives like it did for this guy:

Additional risk is fine if you have rules and are meticulous, but NOBODY should EVER be comfortable with low odds gambling — Vegas has done too good of a job marketing that bullshit already.

Let me be the voice of reason in a sea of idiots — CYNK is not evil, it’s not garbage, it has nothing to do with a bull or bear market, it shouldn’t be avoided, you shouldn’t hate it, laugh at it or insult it and it’s not even clear if anything illegal happened.

Penny stock promotions ARE legal as long as the promoter disclaims how much they’ve been paid in shares or cash and as you can see from the-far-too-early-Seeking-Alpha expose now laughably calling it overvalued at $2/share before it went up to $22/share just a few days later, some tweets and text messages were sent by wannabe penny stock promoters (who have since gone quiet as they DEFINITELY never meant to spike the stock this much and attract so much media/regulator attention) which got the stock trading in the $2-4/share range in mid and late June.

promoters cynk

Small junk companies and publicly traded shells, which is basically what CYNK was, and their investors who are trapped holding the bag will ALWAYS pay promoters, “contractors”, “consultants”, wannabe investment banks and analysts cash and shares to bring attention to their lowly company/stock in an effort to attract investors.

That small company will then use the increased stock activity/share price to pull off a financing at discount prices (but still inflated prices compared to where the stock was before the promotion) or the investor that paid for the promotion will sell their shares into the sunup aka pump and dump and either way the company and insiders are enriched while it’s the average trader and investor who don’t know how the game works that gets screwed.

If a promoted penny stock sucks in enough short sellers early in the game, those shorts can then be squeezed which creates a Supernova chart pattern as you see above and that’s the ideal time to buy (on the breakout) and short sell (after the Supernova begins to fade)

These are the lessons I teach and what my DVD study guides contain…and I’ve been predicting the ups and downs on stocks like CYNK for 15+ years.

Not one of the 12 articles I highlighted talked about the pump & dump process or a short squeeze, instead preferring to focus on the company characteristics the “experts” actually understand, namely marketcap, revenues, profits/losses, # of employees, company headquarters, SEC filings.

What was so laughable to veteran penny stock traders like me and this guy and the guy behind this great chatroom is that NONE of what the media covered matters in cases like this.

Penny stock pump & dumps could have 0-500 employees, products galore, filings in the right states instead of questionable countries like Belize, 0 to $1 billion in revenues and profits (remember many pumps fake things to make them seem more legit — like the Shaquille O’Neal penny stock pump & dump & Spongetech pump & dumps I exposed and from which I received an endless amount of ignorant hatred.

(Shaq’s lawyer sent me a cease & desist letter but spelled the word egregious incorrectly (newsflash you bozo there’s no “a”) and Spongetech put out a press release saying they were going to sue me for my “lies”, but then they got arrested for fraud as prosecutors said they faked 99% of their sales)

…and still none of that effects the stock price and is a PROPER way to analyze these companies.

The problem is that NOBODY in the financial press and media is qualified to present any meaningful research when it comes to penny stock pump & dumps because they have shunned “the gutter” and don’t understand the rules that DO matter, namely the trading volume, Level 2 indicators, promotion size, promoters, promotion type (Twitter/text messages are signs of a wannabe pump instead of the big boys who use hardcopy mailers), float rotation, shares available to short, etc.

It was like pulling teeth to get this video entitled “Inside Penny Stock Manipulation” on TheStreet.com and since it was a few years ago those guys can’t even figure out to make the video still work (doesn’t work for me now, but the link is still up there and we exposed the pump in UOMO which then proceeded to drop 99.9% like every other pump I’ve ever exposed)

Just like on CYNK, financial commentators, traders, investors and message board posters of all kinds have hated on me calling my strategy of short selling pump & dumps, “garbage”, “illegal” (it’s not illegal to short penny stocks as Investopedia claimed when I first began teaching, you just need the right broker, see my brokers HERE), “ludicrous”, “something to avoid at all costs” etc. you get the point and yet despite all the criticism I’ve turned $12,415 into $4 million, showing every trade here and several of my top trading challenge students have also become millionaires in just a few short years following my strategy/lessons.

Michael Goode was my first millionaire student in late 2013, now up $1.34 million, see all his trades HERE…and remember he first wrote about me calling me full of BS before giving me a chance and getting rich as a result.

Tim Grittani was my 2nd millionaire student and he’s now turned $1,500 of his own money into $1.81 million in 3.5 years since becoming my student, see all his trades HERE and see him featured on CNN HERE and on FOX with me below:

I also have 2 other millionaire students who don’t want me using their names publicly, which I resent but have to respect…but I also have dozens of students who are well on their way to becoming millionaires mainly shorting pump and dumps like this student who named his son Timur after me who has now turned $2,200 into $243,000, see all his trades here, making him rather wealthy in his home country of Tajikstan…read more about his amazing story HERE.

As I write this post I know nothing will change very quickly, all the “experts” will still be confused/full of hate when the next pump and the pump after that come around and they’ll continue putting down the penny stock game and anyone who partakes, no matter our 60-75% winning percentages and 90%+ winning percentages when we find shares to short of Supernova pumps like CYNK.

(The main limitation with my strategy and the reason why I’ve only made a few million dollars as opposed to several hundred is because sometimes, as in the case with CYNK, there’s no shares to short so even when you know the stock will drop bigtime, you can’t do anything about it other than sing this song:

But as I create more millionaire students and continually correctly identify stocks that will drop 50-60-70-90% within hours and days and show live trades of my short selling and banking on these penny stock pumps like I did HERE, the tide will eventually turn and people with accounts less than $50,000 will realize shorting pump and dumps — and sometimes even buying them if you’re early enough — is not evil, illegal, laughable, ludicrous, absurd…it’s just a very solid low risk strategy (if you follow these rules) that takes advantage of market mechanisms like short squeezes which lead to trade setups far more predictable than the old guessing game of trying to value a company’s stock price.

Penny stocks rob the narrow-minded of actionable trades and kill those who wish to see this niche suffer…there will ALWAYS be pumps like CYNK, the only question is will you be prepared to take advantage of them?

36 Key Stock Trading Terms You Should Know

nysetradingfloor

In order to learn how to trade, you have to continue to learn the terminology and strategies that go with it…here’s 21 basic stock market trading terms and here’s 25 more stock trading terms.

The more you know, the better prepared you will be to jump into action and predict which direction stocks are going to move in.

Do you think me, the other guru’s on Profitly or my successful students were just born with this knowledge?

NO! Continue reading

Rules For The Largest Penny Stock Chatroom On The Internet

Thanks to my CNN article HERE and FOX TV appearance HERE, my subscriber-base has grown dramatically as I push even harder and do everything possible to achieve my 3rd millionaire student (see millionaire #1 HERE and millionaire #2 HERE).

In fact, there’s nearly 1,000 people in the chatroom every day these days (up from the 200-300 range a year ago) so we had to update these previous rules to keep the chatroom a useful and educational tool in your arsenal (this new trading software and these video lessons also help) Continue reading

Invoice #31011

I should invoice you for this valuable information, but because I want more dedicated trading challenge students and newsletter subscribers I’m gonna show you how I made several thousand dollars in a few hours by picking the single hottest stock in the market before it spiked 40% a few hours later FOR FREE:

Here’s the intraday chart of WATT where I alerted my newsletter subscribers about my buy at $8/share…just hours before it spiked to over $11/share: Continue reading