15 Low Priced Stocks: Buy & Short Sell Some, Avoid Most, Despise Them All!

First, let’s get the fun / useless guessing game contest over with—with YHOO’s $24.37 closing price, there were 2 winners: Ann-Nan Lo $24.50 and DarkMatter $24.24—congrats guys! (UPDATE: Ann-Nan Lo has been disqualified cuz her winning guess was her second…wow, my readers are on top of things!)

Now to business, stocks with predictable charts—doubt any of these topics will get 200+ comments, but gimme a few years to set you straight. Tons of plays, gonna be handicapped yet again by the SEC pattern day trading rule—all that handicapping inspired me to write one hell of a post, which I gotta vet with a lawyer…

VNDA
Yes its bounced, but its a ton off its highs and it’s an earnings play, still watching it, doubt I’ll have the buying power to touch it, f$#@ you SEC!

LGDI
My top play for today, made $350 ayer, look to make more if and when it cracks $4.40 to the downside, could / should move fast when it cracks as that’ll put it slightly down on the day, potential to go all the way down to $4, then it’s a game of whether or not stop losses can get taken out, $4.05-$4.10 if it holds, $3.60-$3.70 if it doesn’t…and this is all of course after the probable / hopeful morning short squeeze , which could / should retest highs, pleaseeeeeeee…game of chess baby, I don’t know how to play, only game I know is PennyStocking where you gotta think a few moves ahead!

SUNV
Kills me I didn’t short into yesterday’s spike, read my twitter message about it (Follow me on there to get quick messages like that), I was all set! That calls for my second f$#@ you to the SEC in as any minutes.

FEED
Lesson in why you don’t scalp these range bound suckers, use my friggin experience to your advantage you dumb Jews!  

• Continue Reading

Shorting Into Penny Stock Manipulation Works Wonders But The SEC Still Owes Me $500

Going into today, as I posted pre-market, I thoroughly expected to short LGDI because it had all the right elements—junky company, big run-up, toxic SEC filings and new today no less than 12 paid-for stock promotion pieces! (somebody’s paying biiiig $ for those)

So, I reserved 1,000 shares to short for the day. Been working myself dizzy lately so I looked forward to taking an early morning nap, but when this thing shot up from $4 to $4.75 before 9:45am—or a $140 million increase n top of its already thoroughly ridiculous $700 million marketcap—I couldn’t help but want to bet against it, excitably shorting 1,000 shares just off its highs at $4.62.

I know, I know, in my PennyStocking DVD, I preach again and again how important it is to wait until the afternoon to fade these suckers, but I am a trading addict so there’s really little hope for me. The good news is I’m an experienced addict so I never overdose—as undisciplined as this short was, it was a small position. Just as the stock jumped to $5 and I felt sick to my stomach for blowing yet another trade, I didn’t panic, instead reserving another 1,000 shares to short to get my average price up.

Since the chart’s already gone Supernova, I knew—yes I knew—the end, or at least a pause / slight reversal, would develop either today or tomorrow. That’s the beautiful thing about these plays—you don’t have to be perfect to profit, far from it, you just gotta get close and understand what’s goin’ on—and sure enough within an hour, after the volume faded big-time (meaning the hype fro the paid-for news releases had worn off) and it double–topped at $5, the tank was on so I added 500 shares—playing it conservatively—at $4.78 to get my average cost up to $4.67.

• Continue Reading

5 Penny Stock Trading Misconceptions

Thanks to my talent for self-promotion, I’ve been exposed to a crazy number of investors, traders and market theories. Here are a few misconceptions that keep popping up and are in desperate need of correcting:

1.You can’t short sell stocks under $5, you’re a liar and a fraud!

Ridiculous, of course you can! There’s no SEC rule against it, many crappy brokers just don’t allow it—hence their “crappy” title. If you want to learn PennyStocking, shorting low priced stocks is essential—that’s why I use Thinkorswim, I’m proud to do all my trading there—they rock!

2. Smallcap and microcap trading is a joke, if you want to prove yourself as a trader, trade large stocks, currencies or futures. Also, what kind of a trader is afraid to use leverage?

Thanks in no small part to the misguided, and ultimately harmful, teachings of yet another entertainment outlet masquerading as journalists, Traitor Monthly, many people think trading is about making the most, being the best and getting to the top the quickest. Screw that! Focus on long-term earning and learning—this isn’t a sport as your career doesn’t end when you’re 35-40 (it’s usually just beginning)—and look for high percentage profits wherever they might be. Yes, my niche will always be looked down upon cuz it’s unscalable and that’s just the way I like it.

All the smartest people ignore it so it’s an easier playing field—advantage me. I guess I’ll just have to console myself with annual profit potential of a few hundred thousand to a few million/year. Boo hoo.

And no, I’ll never use leverage—as these street peddlers are learning, yes, it can inflate profits, but it risks disaster. I’ll never advocate any strategy that risks disaster—short selling is risky enough as it is. Learn from the mistakes of the past—nothing is ever guaranteed…besides, if a strategy is worthwhile, the profits will be there and they’ll be hard earned and natural.  

• Continue Reading

Scanning The Horizon For Worthy Stock Trades

Thanks to (GE)’s pathetic excuse for a business, it’s stormy out there today! No new stocks on my radar today…lots of microcrap traders are playing (FRPT) and (MNKD)—TheLion.com’s all hopped up on them as if they were Mountain Dew. I like volatile low priced stocks just as much as the next guy–ok, maybe more–but not those of falling knives—their movements are based on rumors and speculation of further contracts/news…I hate trying to predict news…no I prefer predicting the effects of sketchy promoters and gullible suckers.

Speak of the devil..unfortunately, there’s no shares available to short of (PSTI) today—something tells me it’s gonna take the big dump under $4 today or Monday, but with my impatience there was little chance at me holding for a few days…as would be the correct course of action (as is usually the case aka you can do better than me!)

(COT) looks ripe for a big fall, at least down to $3, then it’s a question of whether or not it can take out stop losses there.
 

• Continue Reading

Why Low Priced Stocks Crush High Priced Ones aka I Love Frauds & Failures!

Let the records show (CRY) and (NOG) as Exhibits A and B, whose charts I’ve posted HERE and HERE, respectively. Both have gone in the direction I predicted—CRY higher on the breakout and NOG lower after going vertical—but I haven’t touched either one. I’ll tell you why.
 

• Continue Reading

How To Short Penny Stocks: Playing It Safe By Covering Short Positions Early

This is a profession where we know 90% of the players lose—you want to do everything you can to not be one of them. What’s worked for me is short selling weakening stocks that have a bunch of overhead resistance and if the price action doesn’t pan out EXACTLY like I want, cutting my losses quickly. I’ve proven both these points with my latest trades on COT and ASTI.

As I posted the other day, I shorted COT at $3.48, encouraged by a late afternoon crack of sideways price action, making em think it’d seen its top. Unfortunately, overnight good news caused a 15 cent/share gap higher—not much, but definitely not to my liking. Thought about holding, but when I see fading volume and 20k and 30k buy orders—whether they’re real or not—there’s the potential for a big squeeze, so I covered my 1,000 shares at $3.60, a $140-ish loss. Not bad, just playin’ it safe.

Minutes later, the stock was looking to go negative and I tried reshorting 2,000 at $3.55—order REJECTED. Too much trading for this under $25k trader, pesky SEC-Reign-Of-Terror-Rule (Pattern Day Trading Rule (PDTR) should really be ROTR) stopped me…stock drops nicely down to $3.25—annoying $500 gain missed, but this is why most traders play FX and use tons of leverage (SEC you realize you’re punishing the good guys and encouraging the bad ones, right? AKA any economic disaster is squarely on your shoulders). Gotta learn I can’t enter and exit as I please, like being on probation for a crime I didn’t commit—never gonna get more comfortable risking losses.

• Continue Reading

Short Selling Stocks: Plays Galore Limited By Absurd Pattern Day Trading Rule aka SEC Reign Of Terror

As I posted early this morning, there were lots of potential shorts today, but I had to be extra-choosy due to the SEC’s reign of terror over accounts under $25k (explanation down below).

Awoke early and reserves shares of my favs—placing my sell limit orders waaay high, intent on lowering them if and when any became good plays:

-300 ASTI @16.99 LMT
-300 GU @16.99 LMT
-1000 BPAX @5.99 LMT
-1000 REED @4.99 LMT
-1000 QBIK @3.99 LMT

Didn’t even need to reserve any COT, it was listed as easy to borrow. But my top pick was REED, and I was hoping—somewhat naively—to get a morning spike to short into…no such luck. It went down quickly, bounced, down again, blah whatever, volume for the day was 60k, spread between bid and ask was 20-40 cents, no thanks. Next!

BPAX—no morning spike there either—disappointing. Had the chance to short my 1,000 shares into a quickly disappearing block at $4.39, but I hate shorting morning droppers, too high risk of reversal, so I hesitated and it passed me by, on its way to $4.10-ish. Missed out on $200 profit, but if it’d held $4.39, it could’ve easily spiked, risk of $200-$400 loss, not a good risk-reward. As evidenced by its surprising afternoon comeback all the way to unchanged—this is not a typical hype play. Next!  

• Continue Reading