Guest Post: TMK Banks From Buying A Sub-Penny Pump

Posted by timothysykes on Wed 25th of Jun, 2008 04:08:21 PM

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There are really only a few blogs dedicated to PennyStocking-type plays that I regularly read, GOTS, SuperTrades, Nostradamus, TMK and The IL. Two days ago, we all–except UFGemini–missed getting in on the tremendous runup in sub-penny Quest Minerals & Mining Corp. (QMNM), but yesterday TMK nailed it on a wannabe copycat play, Heartland Oil and Gas Corp. (HTOG).

Below is his post, slightly edited/commented on by me, correcting tickers, spelling and such, it’s a pretty good overview…just one thing: TMK, verify your trades by signing up for Covestor already (unverified trades are worthless, everyone in this scummy industry is guilty until proven innocent):

June 24th Review
$43,378, Up $7,425 on the day.

Positions traded for a gain: HTOG ($8,275)

Positions traded for a loss: DSL ($700)

Open positions: Nothing, planning on taking a break from trading for a little bit.

I don’t know about you, but I had a pretty good trading day. DSL did not end up going higher, but actually lower. I closed the entire position this morning after not being able to take anymore pain. No problem though because HTOG came in and saved the day. I mentioned the stock last night as a possible long because of its similarities to QMNM. Everything about the stock looked good, but the debt aspect. And then I thought to myself…Wait, this is a sub-penny stock, nothing matters but pumpers! (TIMcomment: awesome awesome recognition!)

HTOG actually came out firing this morning with a ton of volume and good upward price action. Now all we needed was a little pumpin’ to get the thing rolling. That’s precisely what happened when the stock started to show up on message boards such as theLion.com and others. I knew the stock was poised to move like QMNM did because it seemed everybody in my chatroom was having a ball yesterday with QMNM. Who wouldn’t want to experience all of that commotion again??? I mean 400+% gains on one stock in one day is something everybody dreams about.

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So once I knew that this was the right stock to play, I searched for a possible entry. The biggest thing that caught my eye was the resistance at the .003 mark that the stock had created in morning trading. I figured any break above that point, I was in and hoping people would pump it to the next level. Literally minutes later, the stock did in fact break the all important (at least in my eyes) .003 mark, and I was in. The stock seemed like a rocket following the breakout, quickly shooting to .0042 until profit-takers came in.

One thing to always learn is that a stock cannot go straight up without stops along the way. Everybody’s minds are different…some want to lock in any profits they can get, and other want to go for it all and let their winnings fly for the ultimate jackpot even when they could lose it all! (TIMcomment: YES, no one right way, depends on trader) For this reason, the stock backed off of the .0042 mark and retreated to around the .0036 mark. I knew exactly what was happening, but even I couldn’t help but take a nice, small profit of $1,650ish. I haven’t had too much practice/experience with these sub-pennies, so I decided I didn’t want to risk anything.

After this small consolidation that lasted around five minutes, the stock once again started to gain momentum. Each time it went higher, the stock’s spread seemed to get bigger and bigger. A couple small consolidations at .006 and .0075 mark can also be seen on the chart. By the time it reached .0086, I think everybody was pretty pumped up. I noticed huge price jumps towards the end, which usually signals that a top is near.

HTOG backed off of its highs, and slowly made its way to around the .008 mark. I knew that this mark was going to be very important as the stock had not completely tested the support of any major nominal amount (i.e. an even .006 or.007…not .00432). I was ready to close the position when it broke the .008 mark…after all, I was up around 266% on my position anyway! Unfortunately, HTOG did break the .008 mark and that signaled the end to an amazing hour-long (I know!!! Only one hour and 250% gains! Simply amazing.) run.

sub-penny-stock Guest Post: TMK Banks From Buying A Sub-Penny Pump

I walked away with pretty good gains from this stock, and I don’t plan on playing it again unless it can somehow break that .01 mark. I think only that could produce another round of momentum as big as this. As the afternoon has worn on, the stock is starting to fade…which is to be expected from something that multiplies in such a short time. After all, QMNM closed at .0725 yesterday and traded this morning in the .025’s. No need to force any trades with these ever-dangerous sub-penny stocks.

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Determined to teach others this PennyStocking trading strategy (learn more HERE), he went back to his original $12,415 roots (already $27,000 even though the stock market is down 20%!) to show everyone how to turn thousands into millions, even while having a life (somewhat) and making plenty of mistakes.

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Long story short, wait for stocks that are extremely volatile - for whatever reason - and then aim to take small profits (between 10 and 50% within a few hours, days or weeks) here and there, either from betting on higher or lower prices (yes, you can make $ betting on lower prices, it's called Shortstocking (learn more HERE).

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