The Right & Wrong Way To Short Sell A Fraud Like Kentucky USA Energy Inc. (KYUS)

Yesterday, a day after failing to be too aggressive with shorting known fraud CNEX, as it plunged from $7 to $3 and my readers made thousands of dollars, I saw a morning dip on fellow pump and dump/known fraud KYUS and shorted into it, 2,000 shares at $2.37. Although hugely manipulated, it was only up $1 or so—no $1 to $7 action—but I was afraid I was gonna miss out on a possible 50 cent drop. Not only did this trade break my trading rules—wait til the friggin afternoon you lil bitch!—but I let a prior trade influence a current one. Two major mistakes, so I deservedly was forced to cover into the late morning spike, at $2.56, rubbing the typical morning fakeout breakdown in my face. So, I finished the day with a loss of $413, after commissions, now nearly $1,000 of my highs just last week.

Today, with the stock opening slightly higher in the $2.60-$2.70 range and a morning meeting to work on TIMtv, I made sure not to even consider shorting until the afternoon. Not even when I saw it tanking to $2.40, just as I was walking out the door, was I tempted to short the 3,000 shares I reserved—if I missed it, I missed it. (that morning dip turned out to be yet another fakeout)

But by mid-afternoon, while still in the studio, after some solid sideways price action barely clinging to positive on the day, I saw the stock go slightly negative on the day and I said to myself, “this is a worthy pattern to short into.” I missed the initial drop as it just fell too quickly to $2.50, but I thanked my lucky stars that it bounced right back near the unchanged mark, just as I shorted 2,815 shares (135 shares didn’t get executed) at $2.58.  

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How I Screwed Up Shorting Cannon Exploration Inc (CNEX), Down 40% Today, While My Readers Are Making Tens Of Thousands

Where do I even begin on this one. Like my previous near-perfect call on fellow joke of a company pump and dump VRML, my readers made much more $ than I did. In fact, I lost a bundle shorting CNEX the other day at $6, admittedly too early/forced to due to the circumstances, covering at $7.20 yesterday, not wanting to risk a big-time gap higher/possible short squeeze today. Fortunately for me, there were shares available to short this morning so I reserved 500 and as I posted HERE, I planned on watching this one all day, shorting only when the pattern was to my liking.

After a slight gap higher, the buyers were drowned by sellers—we’re talking 10k volume here folks, nothing major—so I quickly placed an order to short sell with a limit of $7 when the price was $7.25 x $7.30…3 minutes later the priced had cracked big-time below my limit and it appeared I hadn’t gotten my execution. Damnit! Having been in this spot many times before, I knew it’s tough shorting into probable morning dumps so I lowered my limit to $6.50…nope, still no execution…20 seconds later and the stock was testing $6.  

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10 Stocks In Play: Where Do You Fit Into The PennyStocking Spectrum?

Remember: just cuz I suck at buying breakouts—patience and actually being around to buy-wise—doesn’t mean you’re gonna suck at it too. It’s much much much easier to buy these suckers on the way up than is it to short sell cuz it’s more fun to party than it is to inform everyone that the bar is closing and that the strippers all have STDs….that’s basically what it’s like to short these dirty scummy stocks. Below you see a wide range of PennyStocking patterns from which you could and should profit…really just gotta get grounded in my DVD course so you can understand all the variables at work so you can adapt to all the evolving patterns…obviously.

LGDI
VRML
Plummeted bigtime/nicely…despite my $1,000+ in gains between LGDI and VRML, holding one week longer coulda woulda shoulda been an extra $3,000 in profits at yesterday’s closing prices! Are you beginning to understand that as long as you short these turds just as their absurd Supernova buying firestorms appear to fade, even just a little bit, there’s a whole lot of $ to be made? (and despite my 56% return over the past 6 months, anybody who has a decent grounding in PennyStocking could should would be up 100%+ (See TIM results and Supernova slide above to better understand)

NNVC
PSTI
Already began to fade…missed NNVC, thanks a lot Chuckieeeeeeeeee, PSTI so gradual, anybody find any shares to short?  

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Feel Good Friday: Nailing A Perfect Short Sale On Vermillion, Inc. (VRML)

Was I bitter that a stupid mistake cost me between $750 and $1,000 in missed profits the first time VRML squeezed the shorts (as I posted helping other, not knowing I was already short!)? You bet I was! Was I going to let it influence my future trades on that stock or any other? Hell no!

So, after surging pretty much straight from $1 to $5, back down to $3 and then squeezing a few over confident shorts to $4 in a few days all on an ill-researched media story, on Wednesday, I posted how I shorted 1,300 VRML (all I could find) at $3.75, a little too early, but I was confident since I knew this thing would be volatile and shorts would be aggressive.

A few hours into my short, when it was a typical 25 cent profit (as you know I take too many of those) in the $3.50 range, I posted how I was gonna have patience on this one and cover under $3 cuz it was one of the few truly ideal PennyStocking Supernovas to pop its trashy head up in the past few months, even if as I also noted that this was the 3rd great shortable penny stock action in as many days (LGDI which I made $350 on and VRML round one, where I screwed up and lost $180, even while calling it perfectly for readers!)  

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Controlling A Stupid Trading Mistake Means An Opportunity Lost

Despite my rather long list of potential plays I posted this morning, I had two clear favorites—LGDI and VRML—two sketchy and failing, respectively, penny stocks that were up in excess of 100% over the past few days on fluffy news, a contract and a poorly researched NBC video claiming this near bankrupt company was gonna cure Ovarian Cancer (seriously, I can’t make this junk up), respectively again. So, at 7am (early bird gets the worm), I dutifully reserved 2,000 shares of each stock to short—as both were hard-to-borrow—putting my limit orders waaaaay above (or as high as my buying power would let me) their current price, LGDI at $5.49 and VRML at $3.99, intent on ratcheting the down if and when I wanted to short.

Fearful of a large VRML price surge, I commented on my blog post at 9:36am “cancelled my VRML order, not enough buying power to worry about it executing” and focused on LGDI—as it was weak the day before. Tried shorting my 2,000 shares right near its weak open at $4.35, but didn’t get executed…it quickly dropped to $4.10ish, but I didn’t want to chase it…fearful of a morning fakeout (proven correct over the rest of the day—good avoidance)

Next up was VRML, which was spiking from $3 to $4.75…I posted “VRML sooo thinly traded, let it run, I still have my shares borrowed for the day, just in no rush to use em” Whew, glad I canceled my short at $3.99, as I celebrated in a post at 10:05am. Still, at $4.25, everybody is talking about shorting it, so I post THESE rules about patience

But now at 11am, I figure it’d be good to re-enter my short, so I login…wait a minute—WTF, my short had executed at $3.99?!?!?! I posted my disbelief as I chatted with Thinkorswim to see if there was anything that could be done about this error.  

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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.

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How I Screwed Up These Two Near-Perfect Calls To Sell Short

Take a look at my latest two trades—shorting 1,200 shares of probable-fraud spam-happy BSHF into a morning dip at $2.55 and 1,000 shares of failing business-so-let’s-float-a-takeover-rumor VM into a nasty slightly negative close yesterday at $4.01—both of which tanked 15%+ within a few hours of market action of my shorting. Great calls to be sure, but I somehow managed to screwed both up–and judging from the comments, I’m glad many of you guys did better!

Unfortunately, the BSHF pattern appeared the day before this new website went live and since it didn’t tank in the early morning EXACTLY like I wanted, I covered for a $75 loss since I had a million things to do to make the launch. Didn’t feel guilty about it until later in the day when it tanked 50 cents/share in a perfect representation of a spam stock falling apart! Sad sad sad, but one of those rare unavoidable situations.

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10 Hot Stocks And Why It Might Be Fun To Short Sell Them

VM
After missing out on perfect 10%+ afternoon fades both Wednesday and yesterday (dan you publishing business model!), I shorted 1,000 shares at $4.01 into the market close yesterday…while I’d have preferred to short into some kind of bounce—as it might bounce a bit early today—this thing had too many things going for it: first down day, filling the gap perfectly, after a multi-day runup smack into resistance, a strong long-term downtrend, a history of rolling over after spikes, a failing business, upcoming earnings (where they’ll probly fail some more, as is their tendency)…there are buyout rumors so it’s not an ideal play, but I’ve learned to trust chart patterns much more than humans. It’s really gotta crack $4—if it does, stop losses and the chart pattern should bring it down to $3.6-$3.75 eassssy…not as much downside potential as I like here though and given the tough environment lately, I’ll play this one somewhat safe

MESA
Nice gradual intraday and multi-day uptrending, TheLion was all over this and that’s why they’re on TIMfavs (many more websites coming soon…)

JRJC
It’s baaaaaack, this Chinese spiker is trying to do what it does best, kinda tough to do into such a multi-month downtrend, but it actually helps too cuz lots of shorts are getting squeeeeeezed. This is now the 7th big spike where the last 6 proved to be great shorts—no pattern works the same each time, they evolve baby, as shorts are learning  

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A Decent Profit From The Airport Lounge, Now I’m Up 50% In 6 Months, Jewww Yahhh!

First time around shorting sketchy-100-year-old-oil-company-that’s-watched-the-world-go-by PDO, I barely made anything before it spiked hardcore and proved itself to be a full fledged Supernova, squeezing those stubborn short sellers who didn’t purchase my instructional DVD PennyStocking (or else they’d have cut their losses quickly) and putting the stock on my back burner as a potential short. So why today—when I knew I’d be hopping all over the place on planes, trains and automobiles during market hours—would I look to trade this sucker?

Simple: cuz I’ve got years of experience trading while traveling and considering this is the 3rd day short-squeeze-induced runup inside of a larger 8-day commodity-related runup, the odds favored an intraday breakdown of some kind—large or small would be determined by stop losses, fear, commodity prices and volume.  

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