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The Exact Process By Which It’s Possible To Short Sell Hard To Borrow Stocks

Posted by Timothy Sykes on Tue 10th of Mar, 2009 08:20:11 AM
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Still getting a ton of questions on how it’s possible to short hard-to-borrow stocks, so I’ll link again to my original post detailing the process, encourage you to check out my instructional trading DVDs and eve show you an example below of exactly what I say in my Thinkorswim chat window each morning:

Please wait for a site operator to respond.
You are now chatting with ‘Paul’
Paul: Hello, how may I help you?
Tim: hi for account XXXXXXXX, can we try to borrow 2000 TWB, 3000 CSUN and 2000 MRLN to short today?
Paul: checking
Paul: TWB is Easy to Borrow
Tim: ok thanks
Paul: 2000 MRLN is ok
Paul: 3000 CSUN is ok
Paul: Would you like me to make a note on your account for later, or shall I enter an order for you now?
Tim: yes please, let short 3k CSUN limit of $4.99 and 2k MRLN limit of $5.99
Paul: orders are working
Tim: thanks have a good one!
Paul: Thank you. Have a great day!

I put limit prices waaaaay above the stock prices because I don’t intend on shorting them right away, I’ll just lower the prices if and when I do want to short them…or you could just have them make a note on your account, but then you’ll have to re-open the chat window when you want to trade them.

Any other questions, ask them below…and to anticipate, Etrade, Scottrade & Schwab all suck for shorting low priced stocks. I use and recommend Thinkorswim, Interactive Brokers is also great, but their minimum is $10,000 and their customer service sucks (as evidenced by the fact they still have yet to get back to me about working together several months after I’ve contacted them repeatedly)

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  • Tyler
    When you reserve those shares, I have been told that I must use them that day or I will lose them. They will not carry over to the next day. I wish there was a way to accumulate hard to borrow shares. I feel restricted and do not like it.
  • there is a thing called preborrows, but u have to have a good broker like goldman sachs to do it and they cost u a bit of $
  • HopeSolo
    Thanks for that info Tim. I've always wondered what you meant by reserving shorts and now I see that it's effectively just placing limits way too high and lowering them later to trade. And yes, I know, buy your DVDs, I plan on it after a few more winning trades!
  • Josef H
    Hey Tim,
    Just a quick question. How will the 'Up Tick" rule affect shorting Penny Stock?
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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 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%)