How You Can Profit Like The Masters Of Short Selling

Posted by timothysykes on Sun 13th of Jul, 2008 10:06:53 AM

Just kidding, 99.9999999% of you cannot. Because the guys Businessweek just featured HERE have banked thanks to the work of their teams of ANALysts who dug through all kinds of filings to find some business glitches (don’t even bother, too many others doing that and they’re a lot smarter than you), hugely leveraged positions (don’t even think about it…while it worked for Soros, it killed Livermore…you are neither) and those that don’t take hugely leveraged short-term bets are all making longer-term bets (even if you’re right, you don’t have the capital to last that long as yearly margin interest is a bitch!)

Understand when I say this, some of you might be able to profit like these guys, but just as when I say all penny stocks are frauds/schemes/incompetents, I’m talking about playing and writing about this game by the odds…stuff on which I’m right 9 times out of 10 or 950/1000…aka who knows exactly, but the odds are greatly in my favor. Because trading is hard enough, so why try to make it any harder?

The good news is that strategies like Pennystocking can be used to make you a lot of money on small sums of capital, without you having a team of researchers, without the use of leverage and it can be as short term as your impatience makes it out to be (although ideal trades can be held for days and weeks). After all, its gift and its curse is that its ideal for smaller investors and traders, irrelevant to anybody with more than a few million bucks.

So, use your small size to your advantage. Businessweek will probly never proclaim me to be a master short seller–I’ll never make enough $ to qualify–but they might just proclaim me a master short seller teacher, which will not only make me wealthy, it’s also waaaaay more fulfilling!

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  • Andy Dearden
    tim is so correct.. y make it harder just make it simple and easy!!!! using TIMS awesome dvd!!!
  • The Chad
    It's all about the management of expectations - Tim you said it best "you're not going to make millions of dollars investing in penny stocks, but you may make hundreds, if not thousands of dollars, IE Grad Student Tony Ellis and Mike the Machinist. Risk versus reward, I'm very happy that I've found your site, which caters to the smaller investor - and helps many understand the game better...
  • Calvin C.
    Dammit Scottrade has a gay rule that don't let you short stocks
    <$5. I'm thinking about switching to Fidelity (their OCO - "one cancel other" sounds awesome). Which brokerage do you use to short penny stocks Tim?
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