Stop Shorting Penny Stocks Randomly, This Isn’t CNBC, I Want You To Profit!
Posted by timothysykes on Wed 23rd of Apr, 2008 02:21:14 PM
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I’m seeing a lot of comments/emails from people re-shorting these pump and dumps waaaay late in the game, just because they missed profiting from the initial dump. Here’s a tip—STOP!
Yes, these companies are all crap (okay, okay 99.9%, but this is the last time I’ll ever qualify that), but you gotta understand crap companies can and do rise faster than quality companies for several reasons:
a.) there’s no pesky actual businesses to get in the way of hyping / putting out fraudulent / exaggerated press releases so investors must only be convinced of the dream, not the execution of the dream, which is helpful considering the harsh reality / inevitable failure of these companies
b.) no pesky morals or ethics instilled in those who manage such companies / promote such stocks
c.) the ever-replenishing supply of suckers willing to put their money into far-fetched dreams and their unwillingness to be skeptical or cynical until they lose their $ and vow never to repeat the same mistakes…not that it matters cuz there’s always new suckers who don’t know any better!
d.) most importantly, you, the naïve short sellers—who mistakenly believe that just because a company is crap / fraudulent, it’s gonna go to 0—because you guys are the ones who take longer-term short positions and get squeezed when the scumbag company/promoters pump these suckas up!
My blog is not some BS entertainment outlet like CNBC (remember the GTE pump, yeah, it still hasn’t broken out and actually coulda woulda shoulda been a good short for 15%!)—here I profit based on probability so I don’t make impossible-to-have-any-edge-whatsoever predictions. I take it one high percentage play at a time, trades that have excellent risk-reward ratios and when I’m wrong, I focus on cutting my losses quickly.
When you randomly short dogsh#@ stocks like (KOG), (EDEN), (PSTI), (ORGN), (CNOA), (PWSV), (OCTL), (TIGR) you risk getting caught in/causing big short squeezes—sure, there’s still some downside on these stocks—and if you have excess capital to spare for a few months, they might be worth it—but for you guys out there with TIM-sized accounts and under, the risk-reward ain’t pretty! For us, the only time to short is into that initial dump because as I’ve posted again and again, the variables are perfectly aligned, the odds are in our favor…trust me, I’ve been profiting handsomely and refining PennyStocking for nearly a decade now, I’ve considered all the angles. Don’t believe me—good!
Trust charts over humans, former pump and dump IDMI:
Check out my brand new DVD, ShortStocking - the only guide you'll ever need to profit from short selling!
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- InvestorsLive Blog » Blog Archive » Recap: Tuesday Nights High Flyers and Potential Shorts
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TIM Trades
View All| Date | Stock | Buy | Sell | Net |
|---|---|---|---|---|
| Nov 20 | STXS | $3.21 | $3.48 | $813 |
| Nov 18 | PERY | $4.68 | $5.00 | $640 |
| Nov 11 | IIJI | $2.79 | $2.95 | $442 |
| Nov 6 | CVI | $4.42 | $4.70 | $530 |
| Nov 5 | MECA | $3.68 | $3.95 | $490 |
| Nov 4 | CVI | $5.18 | $4.94 | $472 |
| Nov 4 | CVI | $4.83 | $5.01 | $333 |
| Nov 3 | NAK | $3.30 | $3.37 | $157 |
| Oct 31 | IDAE | $2.18 | $2.18 | $20 |
| Oct 30 | HSNI | $7.37 | $7.86 | $561 |
| Oct 29 | EVC | $1.97 | $2.70 | $1439 |
| Oct 28 | HSNI | $6.92 | $7.30 | $540 |
| Oct 28 | HSNI | $6.20 | $6.00 | $320 |
Total: $35,854 (189%)
For once I’ll agree with you, Tim. My account size is now larger than peanuts, which gives me the leeway to take positions in stocks that might take months (or even years!) to go down, like YTBLA and MXFD. I’m not the kind of guy who gets squeezed. I just sit around and wait until the good days come, all the time having enough cash or margin available to act if I do find something else to trade in the meantime. It is the people who do not have gobs of patience and money who will get caught up in a short squeeze and close their position then.
exactly
Tim,
You mention over and over again that PennyStocking will not get you in the tens of millions of dollars. What are you going to do once your account size gets too big for your PennyStocking strategy?
SSRX will run into close…load up for the gap up tomorrow!!
i’m gonna retire, by then I’ll have back my $2 million and millions more in book/dvd sales/speaking fees in teaching you guys how to play the game!
Thanks Tim. Guess u have no aspirations of getting in Buffet, Tudor Jones, and Soros’s league.
JRJC a good example of what happens when you randomly short?
nope i used to, but now i realize my strategy isn’t scalable so i’ll just take form what i can, but without any expectations
Do you like SSRX tim?
Tim,
You say you’re gonna make back your 2 mil or so and retire because you’re in publishing mainly, but you would agree that someone could make more than 2 million with your strategy by aiming for a few hundred thousand every year. You just can’t make several million in one year. By the way are you looking to expand your publishing company into magazines more books etc. in the future?
Don’t short yourself Tim……find a new strategy when this one no longer works.
Shorted 1200 shares of EDEN earlier at $2.30 earlier. Check out the 3 month charts for STEN and GRIN and see what happened after their similar spikes. It’s lookin a lot like PSTI too. I’m staying short for now. I’ll givin it another day or two.
ssrx isn’t up enough
u shouldnt aim to make x amount with this strategy, its not a liquid market like all other niches, so u really just have to judge it one play at a time…no idea how long its gonna taken me to get to 1.65mil again, probly between 5-10 years
mark-yes, the chart looks good, but i dont like how well it held up, its tiny marketcap nor the fact that they’re even kinda associated with agri
I mean go long SSRX, not short
ha i’d never go long anything with a chart like that
shorted 700 PDO at $6.22 into this nice gradual negative close, goal is to take out stop losses at $6, cover $5.75ish
This southern goy ain’t gonna argue with you about EDEN. Hopefully, it’ll do the usual and drop back to the mean, but we’ll see. Thanks for responding. I value your input. That’s for sure.
Tim, do you have to call it in everytime you go short?
hello no, i just pull up my handy chat window
Tim,
What made you think PDO is the one going down besides the gradual down at closing you mentioned above? Just want to learn your strategy on PDO.
i’ll have a detailed post tomorrow morning
ASIA–earnings look good and a share repurchase, I thought these companies only issued new shares.
what are you looking for on dgly, i noticed it on your watch list. if it breaks 9?
Chat window? Sweet jeebus
Just filled 500 shares PDO short at $6.30 after hours. Don’t know who is buying but it was filled! Lets see what happens tomorrow.
nice, i also saw 1,000 sold off at $6…looking good
I had borrowed 1000 shares of PDO this morning from TOS. Almost sold it at 6.50. Crapped myself when it plunged to 6.00 in seconds. Never had the guts to jump back on long or short.
craaap….f*&$ing day trader pattern alert…..didn’t allow me to short it……hopefully tomorrow still on time..
Hey guys check out
http://www.thefinanceprofessor.com
you can join and create your own club
its social networking for investors.
What do you think about V? I have all my eggs in ETFC but I am thinking about selling all of it and going all in for V before earnings and holding for a while or going 50/50… what do you think
jack i think ETFC is random, i think V is random, i’m over here with a freaken broken slot machine that pays out far too often and you’re wondering what number to bet on at the roulette wheel!
ASIA 13.50 PM. Only 6K shares, need to see more volume.
Tim, ok I’ve done my homework. I had the concept that the market was buy low sell high. I kept reading about something called ’short selling’. To the blogger, thanks for the tip about investopedia.com
Wow, you’ll are betting against the stock, against the trend. I see the edge now. Thats risky business, but hey isn’t life. You mean that every time a business’s stock falls someone just made money. You should have your 2 mil back in no time. Now that I think about 2 mil is not alot of money.
Man, just think I use to work 2 jobs and not make half of what I made today. I need more info, I’m all over this site and more. Thanks guys.
Visa is holding steady.