I love getting emails like this because they are shining examples of the problems caused by the finance world’s lack of transparency (which has stymied the learning process and led many to such blatant narrow-mindedness)
Wannabe wall st. big shot who “supposedly” turned chump change into a million bucks shorting a penny stock…. what an inspirational story! maybe we should all go short penny stocks, brilliant strategy. The fact that you are advocating this indicates your complete lack of understanding of what is going on around the world right now in the financial markets, the rotation to large growth stocks, bull cycle in commodities and precious metals, benefits of a well diversified international portfolio. Also, a million bucks ain’t much these days. Not sure if you’re aware, but there are millions of people who have a million dollars today. Tell me you made 50, 100, 500 million, dare I say more? then I would be impressed. I bet you have most of your personal assets in mutual funds, ETFs, and cash. I would respect you if you were smart enough as a young investor to recommend long-term, diversified international portfolio investing through mutual funds, index funds, stocks and bonds and retirement planning through IRA’s. EVOLVE……Realize that you got lucky and that professional investors in the stock market are in it for the long haul instead of chasing the quick buck.
1. ALL my returns are fully audited, there’s no supposedly about it. And, it was $12k to $2 million (in 4 years), not $1 million.
2. I do think we should all short penny stocks! And go long sometimes too! As detailed in my DVD , this strategy is particularly well suited for smaller accounts (given its lack of scalability). I have nothing against commodities, largecaps and a diversified international portfolio, but I’ve never found any success there so they’re not for me. In fact, I think that these strategies have been promoted much too much by firms / people who are more interested in generating steady fees and commissions from investors because they’re too afraid of getting sued and losing business. (After all, no sane financial advisor would ever promote anything capable of losing 25-35% (an approximation, deal with it) within a few minutes, hours or days, no matter if that investment strategy is capable of yielding profits in excess of 100-300% during the same time period.)
Sure, sure focus on long-term growth, aim for 20-30% per year—that’s great and proper for the vast majority of passive investors out there. Be bullish! And all that jazz. But I know many investors whose assets range from a $1,000 to $500,000 and they don’t have the patience for that crap. If you have $1,000, does it really matter if you make 10%, 20% or even 50% on your money in one year? No! Screw investing—by the time you’ve collected all your dividends, sold your top performing stock (probably Google, up 7x in 3 years—too bad you only allocated 2% of your portfolio to it!) and you’re ready to spend your wonderful $1,900 in savings (if you’re lucky after 5-7 years LOL), the dollar will be worth 1/10th of what it once was, you’ll have two kids, an alcoholic wife (a result of your financial situation), a mortgage and we’ll be colonizing Mars.
No, some people would rather take on short-term risk and be more aggressive in their investments to shoot for bigger returns ideally before human cloning becomes hip. In your world, their small asset size is a negative (which is why many smaller (aka younger) investors feel unappreciated); in the wonderful world of penny stocks, it’s a positive (part of the reason I went back to trading with $12k!)
I mean, c’mon man, all the wonderful strategies you listed will never help you earn 10x-100x your money in one year like penny stocks can (as I (who coincidentally never claimed to be a Wall St. big shot (in fact, just the opposite, but you gotta love people assuming without knowing the details!) have proven.)) I could care less about the BullShip and incredibly unpredictable game of guessing world trends—that’s the beauty of penny stocks, just as you look down on all that they stand for, they look right back down at what you stand for, too! No matter terrorism, the price of oil, the economy, consumer debt, the plummeting dollar, the financial industry’s mammoth write-downs, the financial media’s infatuation (actually business model) with making people believe the news they tirelessly cover actually matters, etc., penny stocks rely on much more predictable variables: manipulation, hype and greed aka human nature.
3. Trust me; I know only too well $1 million isn’t a lot these days!
4. All my assets are in liquid cash (and euros) because I believe in remaining nimble in order to take advantage of opportunities (that’s why I’m rooting for a market crash–c’mon all you naive buy and holders, house flippers and debt lovers, panic and smell reality for once!!)
5. Asset size, you’re really gonna come at me with my lack of asset size? Man o man, I now see why the general public despises Wall Street—you egotistical prick—I was a Philosophy major—I care much more about proving myself as a teacher than an investor. Try it—it’s actually quite fulfilling. Stop reading so much Traitor Monthly; you might accidentally convince yourself that all those glittery watches, luxurious modes of transportation and soulless golddiggers you’ll meet along the way will actually make you happy.
6. Realize I was lucky—LOL—I’m not even a great trader and I managed to turn $12k into $2 million by repetitively profiting from penny stock chart patterns, PATTERNS THAT STILL EXIST TODAY. I think I’ve seen my main pattern at least 1,000 times—when does it stop being luck? 2,000? 10,000? Refer to my book and DVD before you waste my time on such accusations—all my trades are in there; only then will you be able judge me.
7. Quick buck—no sir, I am in this for the long haul—my goal is create no less than an entire generation of penny stock millionaires. Right now it’s like SoHo in the 1980s, but this is a game that can be learned by anyone, beginner and veteran alike. It’s time you stop being so narrow minded and accept the fact that this much derided, but rarely detailed market, can create such wealth for even the smallest of investors, all due to the incredible lack of understanding that you have so naively showcased in your email.
PS For all of you who think I have a lot of haters out there–nope! It’s all just one or two guys who really have it in for me. Check out this one hater whose profile page TOTALLY BUSTS HIM for using several different aliases to attack me and my book!