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When To Short High Flying Stocks?

Posted by Timothy Sykes on Fri 26th of Sep, 2008 04:09:38 PM
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This is an important question that needs answering. See the comment below as a successful PennyStocking student answers for me:

Thanks for the call Tim on SIL. I questioned you at first on why in the hell you got in at 4.06 when it looked like the damn thing could spike to the moon, but it worked out just fine for you. I got in late due to my discipline and learning from your penny stocking video. In the video you mention to go short after it goes red on the day in the afternoon and that I did. Shorted SIL at 3.45 held for 59 mins and covered at 3.17 for a nice $540 profit. You the man!

-Cash

Yes, it really is that simple, wait for red on the day and your odds go up exponentially. Although of course, I’ve found this to only work best with Penny Stocks as “real stocks” have tons of “real traders” in them so every giant move is already anticipated five times over….down here in the gutter, your odds are simply higher…that is if you stick to the rules.

In fact, the main problem most people have down here is knowing when to take profits! Sounds arrogant, but it’s true. Cash covered for $500 in an hour and felt damn good, as did I, with my $700 quick profit. But as we both learned when SIL crashed down to $2.50 just one day later, the first red day on a momentum penny stock like SIL is just the beginning of the descent.

Gotta remember, ideal Penny Stocks are up 200, 300 and even 400% within a few days. There’s plenty of downside, especially since most of these runs are just BS hype.

My god, this game is so friggin easy, I’m gonna work my ass off until I make it more popular than Guitar Hero/ or Grand Theft Auto. No reason kids shouldn’t be learning this stuff instead of wasting time.

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  • Cough) self fufilling prophecy (/cough
  • Vick
    Hey,
    Is it possible to short with TDAmeritrade?
  • cash
    Vick yes you will need to have a margin account open and that will take 2500 bucks and then you should be able to short at TDA.
  • My latest post addresses entry points on SIL (posted before this article came out by sheer coincidence)
  • bdog9seclx
    Hey tim and everyone. This is an honest question im in college have saved up $2500 and am trying to buy a foreclosure. I have followed the strategy and will buy tim alerts. Is 2500 enough to make some decent money without being "all in"? or is that not enough? I setup a demo account 6 onths ago and am up %300 but you knoqw how those are not so much realistic. I think if I hit $2000 i would stop trading so I dont risk the hard saved college money in the south goo dawgs...Please only serious answers.
  • sorry meant after
  • bdog,
    since I came back to correct my post I'll give you my 2 cents and then Tim can give his answer. There is nothing wrong with trading with a small account, however the smaller your account the infinitely better trader you have to be, which is almost impossible. You have to make bigger moves in a stock just to make any money and get over your commish fees. Tim has attempted to solve this problem by finding hugely run up stocks that are likely to breakdown and can be held overnight. But you can only trade one or two at most with $2500 in order to make money. Otherwise you will get very frustrated.
  • cash
    bdog jv is correct. you can make money but it would be one play at a time and almost all in all the time.
  • Joker
    Who thinks fnm and fre stock will go up, eventually!

    Sounds like a blog subject to me Tim.
  • Veritas
    Tim, I must say that you are really, really damn good at what you do. I came across your site randomly a few months ago and have been following your site every day since. At first I was skeptical (like you always say, this industry is so full of jokers and idiots it's hard not to be skeptical at first!) but the whole concept of transparency is (sadly) something unique in this industry and something that can't be disputed. I'm now a TimAlerts subscriber and will soon be buying your DVD with the profits I've made. Keep up the good work and honesty. It's what this industry needs more of.
  • Joker
    How can you recognize a penny stock aka fraud company?
  • Zykosis
    why is the livestock playing music videos, was it not recorded?
  • younggunz
    I started with a $2000 account. I admit it is tough and a little risky. I took profits quick at first to give myself a little wiggle room to keep my margin. My biggest losses were from trades I did on my own and were learning experiences for me. I had some pretty nice wins with TimAlerts that I let ride for nice gains though. This last one I went in in SIL 200 shares at 3.30 and covered a day later for a 130 profit. Pretty nice if you average one of those per week. That's not my goal but its something that can easily happen. I think I banked pretty good on USS and APII timalerts as well. There are some that I've broke even or made a dismal amount to cover commissions. I am getting ready to actually put more money into my trading fund to help lower that issue. I think the largest position I've bought was like 600 shares at 3 or 4 dollars a share. pretty risky stuff though
  • younggunz
    Also Think or Swim recommends atleast 3,500 to start off with even though their minimum is $2000. I put in the minimum to just get my feet wet and see how well I can do watching Tim trade. So far he's picked better plays that I have but I am getting better. Not only from him but other subscribers that are active in the member's chat.
  • SP
    bdog im in college as well and i started with $3000 in my TOS acct only a few months back and the extra few hundred a week is a lot since its like me gettin 2 paychecks a week now!!
  • Zykosis
    is the on demand broke?
  • john123
    Even if oil keeps climbing, clean-energy stocks have to eventually play by the same rules as the rest of the stock market.

    John
    Investment Banking Jobs
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Start Here

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.

Where Do You Find Stocks To Trade?

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.

To truly increase your odds at profit, Tim has designed an entire set of detailed instructional DVDs, covering all the variables that amount to over 24 hours of instruction (see them all HERE)!

TIM Trades

View All
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%)