I’m a BIG believer in taking away lessons from ALL trades and ALL interesting trade setups…that’s why I have now recorded 1,000+ video lessons for mystudents.
For those casual readers, here’s nearly 100 solid trading lessons outlined right here.
LOTE has become the single greatest penny stock pump of the past few years, topping that of LEXG, on which subscribers of my 4and I made over $100,000 (see the lessons from LEXG HERE)
I locked in roughly $2,000 in profits on LOTE so far, but have roughly that amount un unrealized losses on my short…the play isn’t over just yet, but no matter what happens, LOTE offers lessons for both traders and promoters alike:
1. As I theorized at my Vegas conference last year, the bull market’s break of its all-time highs has created an environment RIPE for penny stock pumps that far exceed past pumps…say goodbye to the old pumps that could only go from $1 to $4, say hello to the $1 to $10 pumps!
2. LOTE’s promoters did a great job luring in short sellers by tanking LOTE from $3ish to $1.50ish in one day which is usually the beginning of the end of a pump…instead the promoters caught one or more short sellers off-guard and that opened the door to this ridiculous sunup…in the same EXACT vein as LEXG and CPCMCF. More promoters, if given the budget, should employ this tactic to create more massive short squeezes, which long traders appreciate just as much, if not more, than short sellers…we prudent short sellers don’t mind at all because the higher these pumps go, the further they have to fall giving us more inevitable profits.
3. LOTE has been off and on available to short at several of my preferred brokers…good job promoters for opening this avenue up just a little bit, it allows for short squeezes and it makes short sellers such as myself wake up every single morning extra early to try to find shares to short…so if you can pump a stock long enough, the shorts are not in a great mindset after a few weeks due to our lack of sleep.
4. New traders you should get VERY excited because if a worthless company like LOTE can actually sustain a market value of nearly $1 billion for days on end, it means that there will be upcoming promotions of every single scheme you can possibly imagine because the bull market is here and shit is flying!
5. If you haven’t studied my video lessons, DVDs, webinars, 7,000+ blog posts and can’t understand why a worthless carcass like LOTE can remain inflated, or better, extended its inflation longer than anyone else expected, it means you’re not prepared for this new trading environment and I suggest you apply for myASAP.
6. There are lies going around that I’m down big on LOTE — I wish I had found that many shares to short! What my haters/doubters don’t know is that I’ve done several video lessons with screenshots showing my exact trades in LOTE, both, long and short, and anyone who watches that can see I’m basically breakeven. But the fact that these liars exist and are actively spreading bullshit means the promoters are working overtime to discredit me and my little strategy…which could only mean they have more promotions coming soon that they don’t want me to expose/short sell!
Happy days…what some people fail to grasp is that I’ll buy promotions too…I took a TON of heat for my buy alert on LOTE on the breakout at $11ish, but a few days later with the stock at $16ish, it was a pretty good call.
7. Familiarize yourself with the term “boxing”…it’s how I ca remain short in one account and buy a long position in another account, thus reducing my risk as the pump goes higher and higher…which is why I’m breakeven on LOTE so far, inevitably bound to profit on my short, instead of down several thousand dollars had I not hedged or bought any.
8. To be clear, I wrong in thisvideo where I said both pumps, LOTE and OCTX, would collapse within days:
They only dropped 15-25% each so it wasn’t a true collapse, but it did allow me to cover OCTX for $6,000+ in profits and I coulda woulda shoulda made $1.50/share on my LOTE short had I not wanted more…the good news is it’s okay to be wrong as a trader as long as you cut your losses quickly!
I go out of OCTX with gains, not losses, and my LOTE position has been so puny this whole time, I decided to let it ride and try to average up on my short…which is still to be determined.
But I got a TON of emails from people saying I should be embarrassed about being wrong and I’m sorry, that’s not how the stock market works. I’ve made millions being right roughly 70% of the time.
9. This is why I get sick and over-worked because there’s just so much ignorance, naivety and outright lies being spread about pumps like LOTE. It’s my duty to inform you of the truth.
10. LOTE is a blatant pump which is unsustainable…my subscribers will know when and be prepared for the impending crash….HOPEFULLY the promoters can spike this as high as possible beforehand to give it more downside!