Hard To Borrow Stocks: Short Sell What You Can, Only When Key Prices Are Breached
Posted by Timothy Sykes on Wed 9th of Apr, 2008 07:44:41 PM
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All of a sudden there’s a ton of crap stocks looking perfect for PennyStocking: (AGEN), (COT), (PSTI), (GBRC.PK), (CNOA.OB) and (NCEN.OB). Why then did I choose only to short PSTI…because it was the only one with borrowable shares!
As I posted towards the end of THIS post, PSTI’s pattern is the EXACT chart pattern that made me a millionaire by age 22 and it’s why TIM is up now 46% since November 2007. Can’t short more than 10,000-30,000 shares (this time around at least, liquidity willing you can sometimes get up to 100,000 shares), but ideal for smaller traders/investors in the $2k-$100k account size.
Early in the morn, I borrowed 1,000 shares, looking forward to shorting into the 3rd day of an exponential runup for this failing biotech strapped with tons of bitter shareholders who naively bought into the dream at higher prices and are now fortunate enough to get out on this bounce caused by the combo of minor news and several penny stock promoters who sent out one dozen+ emails touting this POS! (Yeah dude, no diff. than VION in the least!)
Spike at the open to $5.05-$5.20 made me pause…scary was the 14k buy block at $5…then big sell blocks came in at $5.10, then $5.05…wanted to short into it…no telling how fast it’d get taken out. Got my execution at $5 and barely 10 seconds later it was gone, plundered by other shorts/sellers…within minutes, panic selling…$4.60 x $4.75 and I was determined to hold and see if it could crack 2-day support at $4.30…no matter my mid-day meetings…but when buyers took out a 4k sell block at $4.65 somewhat quickly I decided to lock in my profits, covering at $4.65, a $330 profit, 6.6% gain, after commissions in less than 20 minutes.
Solid profit, easily predictable morning panic due to recent promoter-induced gains and the probability of a big reversal. If I was a long, I’d have panicked too…after $4.30, no support til $4…then $3.
Meeting went well…wait til you guys see the projects I got brewin…borrowed another 1,000 PSTI just in case it showed signs of fading late in the day—usually good to short into the market close of the first down day on these suckas…thought it was gonna crack at $4.50, reshorted at $4.51, fakeout, bastards, no can’t blame them, blame yourself idiot…broke my own rules about not anticipating technical breakdowns (gotta wait to short into/after the break!), I deserve to get squeezed, but judging from the chart below:
and recent supernovas, all I gotta do is wait and the midget-buyers should get crushed by the basketball-player-sized sellers.
TIM now up over $18k so I can afford to hold this one a little longer…yeah right like that’s gonna happen you undisciplined prick!…okay maybe you’re right…c’mon stop losses, take out at $4!
Now you can Twitter any questions/comments to TIMhelp and obviously you can follow TIM on twitter too!
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Other Websites Referencing This Post
- How To Short Sell A Media-Sponsored Pump & Dump | TIM - Timothy Sykes
- TIM 2nd Quarter Review: I Suck But Most Everyone Else In This Joke Of An Industry Sucks Worse | TIM - Timothy Sykes
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TIM Alerts
View All| Date | Stock | Position | Ideal Exit | % Gain |
|---|---|---|---|---|
| Nov 24 | KVHI | Short | $3.70 | 18% |
| Nov 20 | STSX | Short | $3.10 | 11% |
| Nov 18 | PERY | Short | $3.75 | 25% |
| Nov 11 | IIJI | Short | $2.80 | 5% |
| Nov 6 | CVI | Short | $4 | 15% |
| Nov 5 | MECA | Short | $1.95 | 51% |
| Nov 4 | CVI | Short | $4.81 | 4% |
| Nov 3 | NAK | Short | $3.20 | 5% |
| Oct 29 | EVC | Short | $2 | 26% |
| Oct 28 | HSNI | Short | $6.80 | 7% |
| Oct 28 | HSNI | Short | $5.75 | 4% |
November: 9 alerts, 15% avg gain
October: 11 alerts, 14% avg gain
Awesome more money, more problems! Bwhahaha
anybody who says that, must not have any money! sucks for you.
Tim, got to give you props. You definitely know your niche. What’s your game plan after 25k? You get a lot of crap (some of it deserved ) but it’s fun watching you and your account grow. Keep it real. Well done.
same plan after 25k, just gnna be able to trade more, take bigger positions
Someone had asked here if CHS is ready to short a couple of days ago. CHS chart tells it is ready to short for a quick $0.25-$1 down tomorrow. It has made a fresh new 52 weeks low today below its support of $6.60 with heavy volume today. Missed to short before the close, but I will short this sucker at open. Be prepared to short CHS along with me.
oh geez the stock robots have attacked
Nice play, Tim. I’ve learned a good deal from your site and I am still planning to pick up that DVD of yours once I earn my access to a margin account. For movements like PSTI, I can only pinpoint on that vertical decline early morning and take a +10% gain once it rebounded from resistance. But whether you’re moving forward with a long or cutting into a spike with a short, the skill of being able to zero in on points on the graph is just as valuable. That is the skill that I want to develop but later on I intend to short penny stocks just like you, buddy!
Hey tim, do you think pudc.ob is a sc@m stock? I was at the UB presentation but had to leave early so I didnt get the chance to ask you in person.