Stop Shorting Penny Stocks Randomly, This Isn’t CNBC, I Want You To Profit!

Posted by timothysykes on Wed 23rd of Apr, 2008 02:21:14 PM

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I’m seeing a lot of comments/emails from people re-shorting these pump and dumps waaaay late in the game, just because they missed profiting from the initial dump. Here’s a tip—STOP!

stop Stop Shorting Penny Stocks Randomly, This Isnt CNBC, I Want You To Profit!

Yes, these companies are all crap (okay, okay 99.9%, but this is the last time I’ll ever qualify that), but you gotta understand crap companies can and do rise faster than quality companies for several reasons:

a.) there’s no pesky actual businesses to get in the way of hyping / putting out fraudulent / exaggerated press releases so investors must only be convinced of the dream, not the execution of the dream, which is helpful considering the harsh reality / inevitable failure of these companies

b.) no pesky morals or ethics instilled in those who manage such companies / promote such stocks

c.) the ever-replenishing supply of suckers willing to put their money into far-fetched dreams and their unwillingness to be skeptical or cynical until they lose their $ and vow never to repeat the same mistakes…not that it matters cuz there’s always new suckers who don’t know any better!

d.) most importantly, you, the naïve short sellers—who mistakenly believe that just because a company is crap / fraudulent, it’s gonna go to 0—because you guys are the ones who take longer-term short positions and get squeezed when the scumbag company/promoters pump these suckas up!

My blog is not some BS entertainment outlet like CNBC (remember the GTE pump, yeah, it still hasn’t broken out and actually coulda woulda shoulda been a good short for 15%!)—here I profit based on probability so I don’t make impossible-to-have-any-edge-whatsoever predictions. I take it one high percentage play at a time, trades that have excellent risk-reward ratios and when I’m wrong, I focus on cutting my losses quickly.

When you randomly short dogsh#@ stocks like (KOG), (EDEN), (PSTI), (ORGN), (CNOA), (PWSV), (OCTL), (TIGR) you risk getting caught in/causing big short squeezes—sure, there’s still some downside on these stocks—and if you have excess capital to spare for a few months, they might be worth it—but for you guys out there with TIM-sized accounts and under, the risk-reward ain’t pretty! For us, the only time to short is into that initial dump because as I’ve posted again and again, the variables are perfectly aligned, the odds are in our favor…trust me, I’ve been profiting handsomely and refining PennyStocking for nearly a decade now, I’ve considered all the angles. Don’t believe me—good!

Trust charts over humans, former pump and dump IDMI:

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Michael Goode

For once I'll agree with you, Tim. My account size is now larger than peanuts, which gives me the leeway to take positions in stocks that might take months (or even years!) to go down, like YTBLA and MXFD. I'm not the kind of guy who gets squeezed. I just sit around and wait until the good days come, all the time having enough cash or margin available to act if I do find something else to trade in the meantime. It is the people who do not have gobs of patience and money who will get caught up in a short squeeze and close their position then.

timsykes

exactly

A

Tim,

You mention over and over again that PennyStocking will not get you in the tens of millions of dollars. What are you going to do once your account size gets too big for your PennyStocking strategy?

Goat

SSRX will run into close...load up for the gap up tomorrow!!

timsykes

i'm gonna retire, by then I'll have back my $2 million and millions more in book/dvd sales/speaking fees in teaching you guys how to play the game!

A

Thanks Tim. Guess u have no aspirations of getting in Buffet, Tudor Jones, and Soros's league.

Tony Ellis

JRJC a good example of what happens when you randomly short?

timsykes

nope i used to, but now i realize my strategy isn't scalable so i'll just take form what i can, but without any expectations

Goat

Do you like SSRX tim?

Davey

Tim,

You say you're gonna make back your 2 mil or so and retire because you're in publishing mainly, but you would agree that someone could make more than 2 million with your strategy by aiming for a few hundred thousand every year. You just can't make several million in one year. By the way are you looking to expand your publishing company into magazines more books etc. in the future?

Joe

Don't short yourself Tim......find a new strategy when this one no longer works.

Mark

Shorted 1200 shares of EDEN earlier at $2.30 earlier. Check out the 3 month charts for STEN and GRIN and see what happened after their similar spikes. It's lookin a lot like PSTI too. I'm staying short for now. I'll givin it another day or two.

timsykes

ssrx isn't up enough

u shouldnt aim to make x amount with this strategy, its not a liquid market like all other niches, so u really just have to judge it one play at a time...no idea how long its gonna taken me to get to 1.65mil again, probly between 5-10 years

mark-yes, the chart looks good, but i dont like how well it held up, its tiny marketcap nor the fact that they're even kinda associated with agri

Goat

I mean go long SSRX, not short

timsykes

ha i'd never go long anything with a chart like that

timsykes

shorted 700 PDO at $6.22 into this nice gradual negative close, goal is to take out stop losses at $6, cover $5.75ish

Mark

This southern goy ain't gonna argue with you about EDEN. Hopefully, it'll do the usual and drop back to the mean, but we'll see. Thanks for responding. I value your input. That's for sure.

Brewster

Tim, do you have to call it in everytime you go short?

timsykes

hello no, i just pull up my handy chat window

Happycamper

Tim,
What made you think PDO is the one going down besides the gradual down at closing you mentioned above? Just want to learn your strategy on PDO.

timsykes

i'll have a detailed post tomorrow morning

Tony Ellis

ASIA--earnings look good and a share repurchase, I thought these companies only issued new shares.

Zykosis

what are you looking for on dgly, i noticed it on your watch list. if it breaks 9?

Dan-O

Chat window? Sweet jeebus

Happycamper

Just filled 500 shares PDO short at $6.30 after hours. Don't know who is buying but it was filled! Lets see what happens tomorrow.

timsykes

nice, i also saw 1,000 sold off at $6...looking good

manhack

I had borrowed 1000 shares of PDO this morning from TOS. Almost sold it at 6.50. Crapped myself when it plunged to 6.00 in seconds. Never had the guts to jump back on long or short.

nodin

craaap....f*&$ing day trader pattern alert.....didn't allow me to short it......hopefully tomorrow still on time..

Jay Zalowitz

Hey guys check out

http://www.thefinanceprofessor.com

you can join and create your own club

its social networking for investors.

Jack

What do you think about V? I have all my eggs in ETFC but I am thinking about selling all of it and going all in for V before earnings and holding for a while or going 50/50... what do you think

timsykes

jack i think ETFC is random, i think V is random, i'm over here with a freaken broken slot machine that pays out far too often and you're wondering what number to bet on at the roulette wheel!

Tony Ellis

ASIA 13.50 PM. Only 6K shares, need to see more volume.

Jibri

Tim, ok I've done my homework. I had the concept that the market was buy low sell high. I kept reading about something called 'short selling'. To the blogger, thanks for the tip about investopedia.com

Wow, you'll are betting against the stock, against the trend. I see the edge now. Thats risky business, but hey isn't life. You mean that every time a business's stock falls someone just made money. You should have your 2 mil back in no time. Now that I think about 2 mil is not alot of money.

Man, just think I use to work 2 jobs and not make half of what I made today. I need more info, I'm all over this site and more. Thanks guys.

Jibri

Visa is holding steady.

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Who Is Timothy Sykes And Why Should I Care?

See Tim's full bio HERE. Tim turned a few thousand dollars into a few million by taking small gains time after time on hundreds of volatile penny stocks, discovering that his trading strategy, while consistently successful, works best for those with smaller accounts.

Determined to teach others this PennyStocking trading strategy (learn more HERE), he went back to his original $12,415 roots (already $58,000+ even though the stock market has crashed) to show everyone how to turn thousands into millions, even while having a life (somewhat) and making plenty of mistakes. Currently he is the #1 ranked trader out of 25,000+ on Covestor)

How Can I Consistently Make Money In The Stock Market?

Hard work, Determination and Know How.

Hard work to learn how the greatly misunderstood niche of penny stocks provides opportunities every now and then on which you should pounce.

Determination to seek those probable profits out and know how in order to actually profit from them.

Long story short, wait for stocks that are extremely volatile - for whatever reason - and then aim to take small profits (between 10 and 50% within a few hours, days or weeks) here and there, either from betting on higher or lower prices (yes, you can make $ betting on lower prices, it's called Shortstocking (learn more HERE).

Why Penny Stocks?

As Tim explains in several ALL-NEW instructional DVDs (see them HERE) and in over 2000+ blog posts, penny stocks are the most hyped and corrupt niche in the entire investment world. These two qualities make them the easiest to profit from (legally) because the vast majority of people who play penny stocks are suckers and all-around ignorant people. If you have any intelligence whatsoever, you have a clear advantage and it's like playing basketball against mental midgets.

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This is the #1 FAQ (see more HERE) and it is answered in THIS instructional DVD.

Of course, that's just a brief introduction - to receive a full education, there is Tim's book An American Hedge Fund which is the story of his remarkable rise and lessons learned.

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Date	Stock	Buy	Sell	Net
Nov 6	QXM	$4.31	$4.80	$1936
Nov 4	COT	$8.66	$8.88	$642
Nov 4	QXM	$4.61	$4.89	$822
Oct 30	DDRX	$25.70	$26.53	$812
Oct 29	CTDC	$4.00	$4.42	$781
Oct 26	AWSL	$3.24	$4.10	$2516
Oct 23	RODM	$5.27	$5.23	$301
Oct 22	AMLM	$2.69	$2.97	$820
Oct 22	USEG	$6.12	$6.09	$85
Oct 20	CBOU	$8.93	$9.06	$243
Oct 16	VRMLQ	$16.79	$18.65	$2773
Oct 13	YONG	$11.05	$11.66	$1202
Oct 13	NPHC	$0.59	$0.71	$583
Oct 12	IMGG	$0.60	$0.70	$682
Oct 9	ZAGG	$5.50	$6.10	$2380
Oct 7	GVBP	$0.03	$0.27	$702
Oct 1	NPHC	$0.70	$0.85	$1482

Total: $92,304 (644%)