5 Important Facts About Short Selling Penny Stocks

Posted by Timothy Sykes on Thu 13th of Nov, 2008 04:06:10 PM

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1. While I know most companies are frauds/going to fail, I don’t short indiscriminately because the main purpose of frauds/inevitable failures is to pump up their stock with aggressive and misleading news/PRs aka I don’t want to get squeezed!

2. Of course I get frustrated with the lack of freely available shares to short, but that’s PennyStocking’s gift and its curse. Welcome to the gutter!

3. Of course you can short under $5/share, brokers that say they cant just suck…I use and recommend Thinkorswim & Speedtrader

4. I don’t like shorting illiquid stocks, but sometimes stuff like OCCXD is just too easy.

5. It’s better to hold these frauds/inevitable failures long long time during bear markets, but I just don’t have the patience. I’m still up 177% in the last year so I think you gotta do whatever works best for ya!

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Related Reading

To Those Who Still Don’t Understand My Strategy That’s Up 209% Since Last November: 7 Tidbits November 29, 2008
Best Stock Broker For Short Selling: Which Two Do I Use & Recommend? June 19, 2009
Is Thinkorswim Now Charging Fees On Hard-To-Borrow Stocks? September 23, 2008

YngvaiMalmsteve

I'm switching to Interactive Brokers from Thinkorswim. Much cheaper commissions and better availability of borrows (and you don't have to pull up a chat window to get borrows)

BDOG9SECLX

SFI Tim reminds me of EVS what do you think? by the way coming up on covestor made 8 trades staarting with tim alerts 2 weeks ago up 22%

Timothy Sykes

sfi is more boring than a sissy value investor bachelor party

Timothy Sykes

new post:

http://timothysykes.com/2008/11/14/how-customer...

Boston

YngvaiMalmsteve, how does IB do the request for shares to short? (As opposed to TOS's chat method.)

YngvaiMalmsteve

All you have to do is go here:

www.interactivebrokers.com/en/trading/SearchSho...

and look up the ticker and click "Check Availability" to see if there are shares available. It tells you exactly how many are available. If there are any available, all you have to do is sell the stock in IB's software. It's that easy. And if you want to reserve the shares for later in the day, simply put your limit order in much higher than the current price so that your order doesn't execute.

bdog

yea ur right TIV made me pass %27 now in 9 days ill be a succes story soon timmay
not bad for half way through the month im on covestor chaing ya

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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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TIM Trades

View All

Date	Stock	Buy	Sell	Net
Nov 19	AENY	$2.80	$3.02	$1148
Nov 18	NLST	$4.16	$4.40	$947
Nov 18	IMGG	$1.42	$1.64	$2094
Nov 17	NLST	$5.04	$5.59	$2195
Nov 13	VRMLQ	$21.50	$22.97	$2901
Nov 11	EONC	$2.61	$2.80	$687
Nov 10	EONC	$2.74	$3.36	$9784
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: $98,094 (681%)