Over the years I’ve exposed a ton of pumps and promoters. A lot of people think it only happens in penny stocks. While it is more common for OTCs to get pumped, it happens with listed stocks, too.
How does it happen? And how can you recognize it? Keep reading as I expose one of my tricks for knowing when a pump’s a pump. This might surprise you…
First, let’s look at last week’s big news to put things in perspective…
Table of Contents
- 1 Another Pump Exposed
- 2 A Brief History of Exposing Pumps
- 3 Burn This Pattern Into Your Brain
- 4 How to Recognize Hype and BS
- 5 Why I Teach and Donate Trading Profits
- 6 Pumps, Patterns, and Profits?
- 7 Trading Challenge
Another Pump Exposed
Trevor Milton is, allegedly, the fraud version of Elon Musk. I can’t say he’s definitely a fraud, but the evidence so far seems to point to him doing something … not very good. (Keep in mind, I’m not a lawyer.)
And it’s not just “Oh, I might have gotten one fact wrong.” It was “nearly all aspects of Nikola’s business.” And it seems crazy to me that he could post $100 million bail. But he has properties and still owns stock, so it seems he has enough.
The Curious Story of Trevor Milton Blocking Yours Truly
In September 2020 there were rumors that Trevor Milton got arrested. It turns out the rumors were false … Or the rumors were about nine months early, depending on how you look at it.
The funny thing is that I tried to tweet him but he blocked me…
We’ll see how far this court case goes. For me, it’s nothing new. But a lot of people messaged me last week and said, “Tim, I didn’t believe you.”
So why did Trevor Milton block me? Because I got in a tiff with the promoters behind Nikola when the stock was in the $70s, $80s, and $90s.
One promoter was saying, “If you sell, you’re weak.”
That’s SO wrong. It’s so reprehensible, irresponsible, unethical, and shady. It makes my blood boil. The reality is…
Selling Into Supernova Spikes Is a Sign of Strength
If you’re fortunate enough to invest in a play like this and it goes supernova…
Take profits into strength. Who cares if it goes to $150 or $200?
Take a good look at the chart again. The high on June 10, 2020, was $93.99. As I write … it’s trading in the mid $10s. Guess what? The majority of times that’s how supernovas play out.
This isn’t my first rodeo…
It Feels Like I’m Taking Crazy Pills
Anyone with a little experience and the desire to dig for clues could have seen this coming a mile away. There were a ton of red flags.
A Brief History of Exposing Pumps
The Bad Boy of Pharma
In 2015, he and a group of investors took over failing KaloBios Pharmaceuticals. (KaloBios traded on the Nasdaq as KBIO.) Shkreli became the CEO. When the New York Post asked me to comment, I predicted it would crash.
It makes no difference to me — I don’t care if you know me or not. Nor do I care if you agree with me. And I don’t care if you love this stuff or hate it.
I’ll keep teaching based on my 20+ years of experience. Sometimes I’ll be wrong. But I’ll be right more often than wrong. Why? Because preparation meets opportunity and I’ve been preparing for two decades.
Sponge Tech CEO Arrested for Fraud
In 2010, the CEO of Sponge Tech announced he was suing me and the New York Post. He claimed it was a short-selling conspiracy. I never got sued by him. He was probably preparing his lawsuit when he got arrested for fraud a week later. He ended up in jail.
Then there was the Justin Bieber pump…
Superstar Hate Campaign
Justin Bieber’s team started a hate campaign against me because I warned about his pump, Options Media Group (CVEM: OPMG). (Note: CVEM refers to stocks with Caveat Emptor status on OTCMarkets. In other words, the worst of the worst. For the most part, they’re untradeable.)
The crazy thing is, it was actually a useful product designed to disable your phone when you drive. Unfortunately, the company didn’t own the intellectual property.
It was licensed by another company, China-based NetQin Mobile. So Options Media didn’t even own the actual product. Anyway, Beiber was promoting it and he got a ton of shares.
Here’s another pump exposed…
The Infamous Cease and Desist Letter
In 2010, NXT Nutritional Holdings Inc. (OTCPK: NXTH) was a big promotion. I called it out for what it was. And I mentioned that Shaq was a compensated spokesperson. His attorney sent a cease and desist letter.
Burn This Pattern Into Your Brain
The more you see it, the more you’ll realize that it keeps happening. Every one of these was a promotion…
Ozop Energy Solutions, Inc. (OTCPK: OZSC)
Study the pattern…
Enzolytics, Inc. (OTCPK: ENZC)
Burn it into your brain…
Optec International, Inc. (OTCPK: OPTI)
Memorize the pattern…
Are you starting to see how this plays out again and again? Yes? Good. Now study another chart…
Artificial Intelligence Technology Solutions Inc. (OTCPK: AITX)
AITX is another recent example of my 7-step pennystocking framework…
One last example…
HUMBL Inc. (OTCPK: HMBL)
Hopefully, by now, you recognize the pattern. If you want to go deep and learn the nuances of the pattern, start with my…
But even if you recognize the pattern, you might wonder…
How to Recognize Hype and BS
First, the more times you see it, the easier it gets. That’s why I tell people to start studying now because it takes time. But here’s a tip…
It’s a promotion … a pump. Whatever you want to call it, it’s BS.
Why would they lie? Because they don’t want people buying and selling — aka trading — their stocks. They want diamond hands. They want people to believe their BS then hold and hope. Which means my exposing them is a threat.
The irony is…
When promoters lie about me, it exposes them. I’m grateful they’re so incompetent. They don’t even realize that their lies help me see how full of crap they are. It literally alerts me to their promotion.
Why I Teach and Donate Trading Profits
I probably should short sell… I could clean up. But again, it’s not good for newbies.
When I was a short seller, I‘d have a big profit and be excited about it. Then 30 students would be saying, “Nah, I don’t think trading is for me, I couldn’t find shares to short.” Or they’d take losses because they didn’t have enough experience.
Pumps, Patterns, and Profits?
I’m not perfect. But I lock in small profits. More importantly, I show what I consider to be the best stocks to trade. Note the difference — I don’t mean the best long-term investments.
But somehow, out of tens of thousands of stocks, I trade the hottest stocks in the market on any given day. It’s not luck, and it’s not random.
It really is a matter of preparation meets opportunity. Again, my gains might not be huge, but they’re meaningful for people with small accounts.
This is what I know…
I don’t believe in any of these companies. But I see the opportunity because the pattern is hot.
I’m looking for more dedicated students…
How bad do you want it? Everything I’ve written about in this post is online. You can read the SEC filings and use StocksToTrade Breaking News.*** You can learn the chart patterns and rules. (I trade using these rules.)
Just remember it’s not easy. It’s crazy how much work goes into this. Jack Kellogg didn’t magically go from his first $1,000 month to $8 million in profits.* (See Jack’s Profit.ly chart here.) He dedicated himself over years to get to this point. And he did it as a member of the Trading Challenge…
Again, how bad do you want it? Are you willing to study? Are you willing to put in two, three, maybe even five years before it all starts to come together? Jack didn’t make any money for 20 months. It’s not for everybody, and that’s OK. But if you have what it takes, apply today.
What do you think of this post? Comment below, I love to hear from all my readers!
*This level of successful trading is not typical and does not reflect the experience of the majority of individuals using the services and products offered on this website. From January 1, 2020, to December 31, 2020, typical users of the products and services offered by this website reported earning, on average, an estimated $49.91 in profit. This figure is taken from tracking user accounts on Profit.ly, a trading community platform. Timothy Sykes has a minority shareholder interest in the platform. I’ve also hired Jack Kellogg to help in my education business.
**While Tim Sykes has enjoyed remarkable success trading stocks over the years, his primary income derives from the sale of financial education products and subscription services offered by various businesses and websites in which he has an ownership stake.
***Tim Sykes has a minority ownership stake in StocksToTrade.com.