The vast majority of the world ignores reliable patterns like THIS and THIS and generally, as a rule, hates penny stocks and all the scams that go along with them, while my top millionaire students and I find that being meticulous and focusing on patterns that work far more often than they do not is the key to actually making millions.
This is how, despite being warned by family, friends and pretty much everyone in the financial community to never trade penny stocks due to the inherent risk associated with them, we continue to grow our accounts exponentially within a few years and the central theme of this must-watch video from my hotteststudent of the moment is to have patience and wait for the best setups to increase your odds of profit:
The highest odds of profit with these kinds of plays come when a penny stock is greatly mispriced due to hype/manipulation (short sell the misguided euphoria) or sheer panic and stop loss selling (this pattern works SO well, although not 100% as ZENO longs learned the hard way today (I still made roughly $2k by playing it safe, as I always do and when your thesis doesn’t pan out on ANY pattern, simply cut losses or take gains quickly and move on, not sure why this is so difficult for so many people, but welcome to my life as a teacher)
Download the key points of this post as PDF.
In breaking news from yesterday “Scammers Used SeekingAlpha for Bogus Stock Promotions, SEC Says” we learned that:
On Monday, the Securities and Exchange Commission sued 27 individuals and companies for their involvement in hundreds of conflicted articles that appeared on SeekingAlpha and other sites. The authors checked a box that said they hadn’t been compensated, concealing the payments they’d received from stock promoters, the SEC said in a statement.
To hide their identities, writers used multiple pseudonyms, even creating separate personas who claimed to have 20 years of investing experience. At one promotion company, writers even signed a contract forbidding them from disclosing their compensation. SeekingAlpha wasn’t accused of any wrongdoing.
“These companies, promoters, and writers allegedly misled investors by disguising paid promotions as objective and independent analysis,” Stephanie Avakian, acting head of SEC enforcement said in the statement.
…something that I’ve been warning about THE ENTIRE DECADE I’VE BEEN TEACHING, as you can see in articles like “MSN Money, FOX News, Motley Fool & Seeking Alpha Implicated In Penny Stock Pump & Dump Cases” and “Are Penny Stock Promoters Using Seeking Alpha For Stock Promotion?“.
In that second blog post of mine from 2010, I linked to a Seeking Alpha article that was pumping up the terrible penny stock, APPY, and now that the case has been broken wide open, this is what Seeking Alpha has in place of that article:
As for “Takeover Speculation Swarms at AspenBio Pharma” instead of an article, we now get this legally mandated disclaimer:
This article has been removed; Seeking Alpha has dissolved its relationship with the ‘author.’
So, am I saying, look I told you so?
Sure, that I am, but more importantly, this is a classic example of how penny stock promoters simply aren’t very smart and with a little digging, you can figure out their schemes and profit from them, either short selling them, aiming for this kind of pattern, when you can find shares to short (not always easy, the main problem with one of the strategies that made me my 2nd million dollars), or by watching this guide, understanding the ins and outs of the #5 pattern that works most of the time, that being to wait for the intraday crash, ideally morning panic, on these pumps and then buy the dip as the penny stock promoter supports it enough to lessen the odds of an investigation into their manipulative dealings.
The promotion and manipulation in penny stocks is abhorrent, but it’s always going to be there so you better accept it and learn how to profit from it…legally, by learning how to spot it and trade the patterns it creates.
Don’t believe me?
Sure, I get that all the time, it’s no surprise, but now with 4,700+ video lessons in my library for newsletter subscribers and 8,000+ blog posts, nearly half of which have been on outlining the ins and outs of these penny stocks scams like such classics as:
10 Reasons Why Mesa Energy Holdings, Inc. (MSEH) Will Drop 50%+ (it did do just that within a few days and even some press was surprised by how I called it)
(I should also mention Mesa Energy went so far as to tell people not to listen to me in an SEC filing here LOL…whoops!)
The Seemingly Unchanging Million Dollar Profit Stock Market Pattern: [8 PRETTY CHARTS]
…and thousands and thousands more of video lessons and blog posts on this same phenomenon.
You can ignore me and my warnings if you want, stay far away from the big bad penny stock niche and it won’t matter to me one bit…I’ll keep creating more and more Millionairestudents and it won’t be you.
But, if you do want to learn and see how to predict these stock moves and beat the SEC to uncovering these kinds of scams BY YEARS, then start watching my free video lessons here and start studying my free penny stock guide here and apply here to be mentored by my top millionaire students and I.