A Wide Range Of Opinions On Short Selling, Yours Truly Included
By now, those of us who’ve learned to rake in solid gains through short selling and PennyStocking realize how easy it all is, but for the rest of the suckers out there these are still big bad mysterious strategies
Check out THIS new newspaper article that is just a basic summary of the risks and rewards involved with short selling and look at my quotes:
“It’s considered a speculative strategy for a reason because in the long run stocks do tend to go higher,” said Mr. Sykes, 27. “But on the other hand, more than 50 percent of stocks go down in a year regardless of what the market does. So it is a viable strategy in my mind.”
That’s a decent point, but how can you not get angry at comments like this:
“Short selling is not something I’d advocate for anyone who is not a professional trader,” said Michael Cohn, chief investment strategist for Atlantis Asset Management in New York. “I’d be more inclined to recommend shorting an index, as opposed to shorting individual stocks.”
Cohn you dumb motherf%^&#, I’d short your career before I’d ever short an index–scumbags like you make my job of teaching people basic friggin things like short selling harder so we can’t be friends.
Let me be very clear, Cohn & every other wannabe traders who’ve talked or written about short selling is focusing on shorting companies for fundamental reasons–everyone wants to be the next Chanos shorting Enron down to 0–but they ALL ignore short selling penny stocks, which are pretty much uniformly fraudulent.
Why is short selling fraudulent penny stocks such a revolutionary idea? It’s not. Finance people are just the most unimaginative, unoriginal pieces of sh$% in the world so you gotta thank God for them leaving this opportunity wide open.
So, be polite and leave a comment below thanking these dumbfu%^s we owe all our easy profits to their incompetence.
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| Date | Stock | Buy | Sell | Net |
|---|---|---|---|---|
| Sept 4 | COIN | $5.70 | $6.21 | $745 |
| Sept 3 | COIN | $6.49 | $6.30 | $305 |
| Sept 3 | COINW | $2.75 | $2.85 | $180 |
| Sept 2 | TAYD | $7.51 | $8.13 | $545 |
| Aug 18 | FOUR | $2.80 | $2.66 | $342 |
| Aug 14 | APII | $2.66 | $3.30 | $1261 |
| Aug 12 | APII | $3.25 | $3.40 | $285 |
| Aug 7 | NOBL | $5.02 | $5.49 | $680 |
Total: $26,508 (
114%)
1Tony Ellis
August 2nd, 2008 at 5:31 pm
Do we have a track record for Cohn? Does he think QQQQ is a good short?
2TIM Sykes
August 2nd, 2008 at 5:33 pm
no the article says he’s expeciting a big rebound
3motleydude
August 2nd, 2008 at 5:44 pm
good post.
4A
August 2nd, 2008 at 5:52 pm
Great blog posts Timmay. I think you and Brett Steenbarger have the most useful/insightful daily blog posts for traders on the web. Difference from other bloggers is the focus on teaching instead of bragging and self-absorption. Keep up the good work! A great read I incorporate as part of my daily trading routine.
5Tony Ellis
August 2nd, 2008 at 5:57 pm
lol…I wouldn’t be calling for a big rebound just yet.
6A
August 2nd, 2008 at 6:04 pm
“We’re in the process now of feeling out a bottom,” Mr. Cohn said. “The majority of the benefit of shorting this market is over. The downturn in price for a lot of these stocks, especially financials, is 80 percent if not completely done.”
Unfortunately, it is comments like these that make me think the market might go lower from here. There are still more morons that the market has not shaken out.
7Tony Ellis
August 2nd, 2008 at 6:41 pm
Exactly. The Russell 2000 which is made up of horribly crappy companies can’t lead the market from the bottom. Speculative Spirits must be broken before we get final bottom. Doesn’t mean we can’t have a significant rally but at the ultimate bottom I wouldn’t think R2000 would be the leading index.
8traknologist(TIMBUCKS: $67)
August 2nd, 2008 at 7:03 pm
Hahahaha they just wanna take more of everyone’s money. Cramer was crying how it was the bottom and what happens the next day, the market gets pounded for 200 points…. lol. Scandalous and I’m sure almost everyone here seen that coming.
9TIM Sykes
August 2nd, 2008 at 7:22 pm
dont even think about trying to call the bottom, dow was 4k just a few years ago, i hope we go back there
10Tony Ellis
August 2nd, 2008 at 7:49 pm
I damn sure wasn’t calling bottom!
11leo00o83
August 2nd, 2008 at 8:00 pm
As much as I hate to have a contrary opinion of anybody that has been trading years and years more than I have, short term bottoms (followed by 2-3 month rallies) are ALWAYS days with higher than average daily volume and extreme drops in the VIX and of course big rallies the following day.
to actually spot “THE” bottom for the next few years is an entirely different story though, that’s just a game for insiders/gamblers.
12Randy
August 2nd, 2008 at 8:00 pm
I don’t see it going below 10,000 for very long. PRPFX would be nice if it went to 4,000.
Just read the blog on reserving shares. Good information to know.
Tim is an arrogant, stupid and egocentric idiot who somehow thinks he is very important in the scheme of things. He writes like a fifteen year old with hormone problems. J/K have a nice weekend everyone.
13vo(TIMBUCKS: $31)
August 2nd, 2008 at 8:59 pm
No bottom yet. We’re in this economic self-fulfilling prophecy now where we’re slowing things down on our own. Now with people in California and NY goverment jobs getting kicked to the curb, the economy will slow some more.
But hey, every time someone calls a bottom in the market and everyman comes in with new cash and causes nice volatility for trading, I’ll take it. :-)
14cash(TIMBUCKS: $106)
August 2nd, 2008 at 9:04 pm
Tony you mean you are not going to pull a Crammer and call a bottom.
15cash(TIMBUCKS: $106)
August 2nd, 2008 at 9:06 pm
Fellas what do you guys do about your tax situation and do you recommend any books on taxes and trading or should i just head to an accountant to answer all these questions?
16irongate
August 2nd, 2008 at 9:17 pm
I think cohn was talking about not wanting to get stung by a stok getting bought out or something… for example I often have negative views on industries so i short a sector index to bet that the whole sector drops…. ie IYR commercial real estate
17Tony Ellis
August 2nd, 2008 at 9:40 pm
I like the guy at the end who said individuals should have at least $1,000,000 to consider shorting. What a douche!
18pumacom(TIMBUCKS: $71)
August 2nd, 2008 at 10:45 pm
leo00o83… major spike in the VIX signals capitulation and a potential bottom, not a drop… mid 30’s seems to be what the “pros” are looking for right now before they think about calling a bottom… right now we’re at 22!
19pumacom(TIMBUCKS: $71)
August 2nd, 2008 at 10:49 pm
Of course, another good sign of a bottom is when Cramer comes on screaming for everybody to sell.
20TheParadox(TIMBUCKS: $15)
August 2nd, 2008 at 11:12 pm
I don’t think calling a bottom or trying to call a bottom is a good idea, but i think we are about 67.3% done with the bottom, but prices dropped about as low as they are gonna get. maybe 28.2% more over the next few months.
Those people are professionals, they need to comfort the mutual fund holders that their retirement is OK because they have worked hours upon hours researching complanies like AAPL, MSFT and everything else that has a cap over 100B
There are more mutual funds than publicly traded companies i believe. what a joke.
21Zykosis(TIMBUCKS: $94)
August 2nd, 2008 at 11:24 pm
lol he says shorting is risky, you should have 1 mil if you’re going to short… yea ok buddy…
22rankun(TIMBUCKS: $11)
August 2nd, 2008 at 11:55 pm
QQQQ is a horrible short, use sds, less fees
23Calvin C.
August 3rd, 2008 at 12:31 pm
Why not short indexes? FXP is a great short to go double lone on China, since FXI is not leveraged. I’ve having trouble shorting penny stocks since Scottrade won’t allow shorts under $5. I’m thinking about switching to Fidelity, but I was curious on which brokerage do yall use to short penny stocks? Help a brotha here?
24Calvin C.
August 3rd, 2008 at 12:32 pm
Why not short indexes? FXP is a great short to go double long on China, since FXI is not leveraged. I’ve having trouble shorting penny stocks since Scottrade won’t allow shorts under $5. I’m thinking about switching to Fidelity, but I was curious on which brokerage do yall use to short penny stocks? Help a brotha here?
25cash(TIMBUCKS: $106)
August 3rd, 2008 at 7:09 pm
Calvin use who you want but I use TOS. The ones that are talked about all the time on tim’s site are TOS and IB. Scottrade is one that always getting made fun of here, plus tim hates that broker.
26Calvin C.
August 3rd, 2008 at 8:06 pm
I’ve been wanting to get out of Scottrade. Thanks for the tip. IB=Interactive Brokers, but TOS=???
Anyone here uses Fidelity? Their OTO (one triggers the other) orders seems like a safe bet for both stop loss & profit taking.
27Marshall Smith
August 4th, 2008 at 2:36 am
IBOT.Pk is positioned with Brazilian joint venture projects partner, Cosan SA, the world’s largest sugarcane processor. Is this will impact the Company positively. Also how when will this contract start reflecting in their balance sheet?
285holeSAVE(TIMBUCKS: $39)
August 4th, 2008 at 9:56 am
Calvin, fyi - TOS = Thinkorswim. and their software supports/allows complex orders oto, ots(equence), oco…
good luck. I like TOS I like Speedtrader.com
29ddigia1(TIMBUCKS: $12)
August 4th, 2008 at 10:44 am
I love your quote: “But on the other hand, more than 50 percent of stocks go down in a year regardless of what the market does. So it is a viable strategy in my mind.” True. I’m new here, new to short selling, new to the blog… but I An American Hedge Fund and look forward to reading this blog day in and day out! Thanks Tim!
30mdc007(TIMBUCKS: $2)
August 4th, 2008 at 4:42 pm
Anyone that rants as incoherently as this guy Tim Who? Has to have an agenda. It is obvious from the ridiculous self promotional banners at the top of this website that this guy has not been around very long. If he is such a great trader why is he wasing his time trying to suck 29.95 out of people as naive as he is. He should be running a hedge fund with his fantastic track record LOL! He probably has millions of TIMBUCKS. Thats why he spends his time running this website.
Get a grip TIM when you have a real track record through a few market cycles you might get a real job.
31TIM Sykes
August 4th, 2008 at 4:44 pm
god i love my haters, so full of assumptions, so incapable of doing any research…basically describes wall street!
32thebabyfacedtrader(TIMBUCKS: $24)
August 5th, 2008 at 1:05 pm
If they are trying to protect the new traders,then stopping short trading is not going to help since the markets are trending down. If you happen to be new to trading during this time, then shorting isnt risky; its the only game in town right now.
33petty penny theif
August 15th, 2008 at 9:25 pm
Shorting or going long on the index is great! For 3.5k you can trade one Mini-Dow (/YM) futures contract and easily make 145 points on one good trade=$725/20% ROI
Shorting IS risky, but set a stop loss @1-2% of total account.
34Yank My Chain
August 15th, 2008 at 9:50 pm
LMAO, how old are you guys???? So this is what it has come down to, can’t even spell your own screen name??? Petty Penny can’t even spell Thief???
OMG, I can’t stop laughing.