Yes, 99% Of OTCBB, Pink Sheet Stocks & Stocks Under $5 Are Scams, Schemes & Frauds

Posted by timothysykes on Sun 29th of Jun, 2008 03:53:56 PM

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It’s quite funny to see/hear/read some people’s reactions when I say this, which is rather obvious to most. Most big-time Wall Streeters know this—that’s why they don’t voyage down here, most veteran traders know this—that’s why they avoid this sector like the plague, but amateurs, suckers and newbie traders have a hard time believing it.

Because they believe in the goodness of people. Especially polished-presentation-talking businesspeople. They believe people are honest. And fair. And just. Because they are drinking the Kool-Aid these companies so willingly spout day and night.

No.

Down here in the gutter of Wall Street—well, really everywhere too, but especially down here—people are dishonest. They craft lies, exaggerations and misinformation for their own purposes. They hide the skeletons in the closet, stuffing them down, until there’s so many they simply bust through the door. They are not your friends. They are not your family. They are not to be trusted. Even if they are your friends and family. Especially, if they’re your friends and family.

Because money corrupts. Especially big money. Especially the thought of big money. Having it. And, spending it.

Like clockwork, within a few years, these scams, schemes and frauds—no matter if they were once seemingly surging every day—companies like IdeaEdge, Inc. (IDAE), HYDROGEN HYBRID TECH INC (HYHY), Capstone Turbine Corporation (CPST), Hydrogenics Corporation (USA) (HYGS), SatCon Technology Corporation (SATC)—are almost all out of business or at least 75 to 99% off their highs. Because after the pump comes the dump. The companies themselves, and I use that term lightly, don’t matter, they’re just vehicles for all sorts of nefarious characters to plunder until they’re no longer able to be plundered aka the jig is up & even suckers see them for what they really are—dressed up carcasses. No different than Weekend at Bernie’s. And each successive pump is just another weak sequel.

Now when I say scams, schemes and frauds, I’m not suggesting they’re all involved in illegal activity—corporate and stock manipulation law is soooo gray, who the hell knows what’s legal and what’s not anymore. Seriously. Who’s gonna keep tabs and clean the mess up? The incompetent/understaffed Osama bin SEC? You with that Scottrade account?

I mean c’mon, all everyone down here in the gutter of the market is doing is playing with numbers and taking advantage of people’s greed and inability to be as cynical as they probly should be. Whether a CEO talks up how bright their company’s future is (Traitor Monthly, Bear Stearns, just about every publicly traded company in the world) (as CEOs can never admit defeat—they are paid to be a company’s #1 cheerleader), an accountant/CFO manipulates a company’s balance sheet to assuage shareholders (happens every day), a newsletter pumps up/bashing a stock (whether paid by the company, a shareholder or for their own purposes (as in they own or are short shares) or a message board poster uses selective data points to make their case—long or short—this is what everyone does so you might as well accept it.

I know many will think I’m crazy—with just as many, if not more, privately emailing me (since they can’t go on record or else they’ll lose their place in the $ line aka their job/reputation, etc) to tell me how great it is that I’m cutting through all the BS—but if you simple think the worst of EVERYONE in the penny stock niche, you’ll never be let down.

This obviously goes against American ideals like “innocent until proven guilty”, but if you’re going to survive, nay, flourish down here in the gutter—and no joke, it really is the gutter—you gotta take my battle-tested advice cuz I didn’t get this way without some serious losses/experience.

So presume everyone down here is “guilty until proven innocent”. Hell, if you any due diligence (it means research you friggin dumb newbies), you’ll discover half the people working this beat already have criminal records!

Don’t get me wrong, while I’ll always make fun of and put down this joke of an industry, it’s a great place to earn rather easy money because once you understand how the corruption/manipulation/hype/greed game works, it’s fairly easy to predict how all the characters involved will act in any given situation. It’s like poker—everybody’s got a tell.

So what are these tells…well, I detail many, if not all of them, in my 6-hour instructional DVD PennyStocking Package with autographed copy of my book An American Hedge Fund, 220-page instruction manual preferred email response (paying customers obviously come first) and now available at a discount if purchased with a full year of TIMalerts!

Nothing is guaranteed, patterns evolve, but human nature doesn’t so using this kind of thinking, whether you’re into buying or shorting stocks, there are times when the odds can be in your favor. And that’s the time to trade. When the risk-reward ratio is in your favor. Not random trading. Random trading is the worst mistake possible and that’s the cause of why 90% of traders lose money.

So trade cautiously. Trade carefully. Trade cynically. Trade safely. Trade profitably.

Check out my brand new DVD, ShortStocking - the only guide you'll ever need to profit from short selling!

Start Here

Who Is Timothy Sykes And Why Should I Care?

See Tim's full bio HERE. Tim turned a few thousand dollars into a few million by taking small gains time after time on hundreds of volatile penny stocks, discovering that his trading strategy, while consistently successful, works best for those with smaller accounts.

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.

How Can I Consistently Make Money In The Stock Market?

Hard work, Determination and Know How.

Hard work to learn how the greatly misunderstood niche of penny stocks provides opportunities every now and then on which you should pounce.

Determination to seek those probable profits out and know how in order to actually profit from them.

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).

Why Penny Stocks?

As Tim explains in several ALL-NEW instructional DVDs (see them HERE) and in over 900+ blog posts, penny stocks are the most hyped and corrupt niche in the entire investment world. These two qualities make them the easiest to profit from (legally) because the vast majority of people who play penny stocks are suckers and all-around ignorant people. If you have any intelligence whatsoever, you have a clear advantage and it's like playing basketball against mental midgets.

Where Do You Find Stocks To Trade?

This is the #1 FAQ (see more HERE) and it is answered in THIS blog post.

Of course, that's just a brief introduction - to receive a full education, there is Tim's book An American Hedge Fund which is the story of his remarkable rise and lessons learned.

To truly increase your odds at profit, Tim has designed an entire set of detailed instructional DVDs, covering all the variables that amount to over 24 hours of instruction (see them all HERE)!