Most Penny Stocks Fail (How I Make Money Short Selling)*


– So, how do you short sell a stock? This is a very good question. Most penny stocks fail. Most penny stocks go to zero. So, while everyone hates on penny stocks, I say why hate on them because they’re probably going to fail because they’re probably going to go down. That makes them predictable, and you can make money short-selling. Short-selling is betting
on a stock going lower. You might have heard the term, you know, don’t sell yourself short. Don’t underestimate yourself. In this case with a penny stock, it’s good to underestimate it because they’ll probably screw up whatever they have going for them eventually. So, it’s good to short-sell penny stocks. So, how do you do it? You have to actually
find the shares to short and in order to short, you’re taking a negative position. So, your basically taking
a loan from your broker. I know this is confusing. You’re selling shares that you don’t own. So, normally if you wanna buy a stock, you buy like a thousand
shares of a stock at two. You want it to go to eight, right? So, let’s say you buy a
thousand shares at two, you sell it at eight, you’ve quadrupled your money. A thousand times two is $2,000 investment. You sell a thousand shares
at eight, you make $8,000. 8,000 minus 2,000, $6,000 profit. Wish short-selling, it’s the other way. It’s the same exact kind of thing. You buying low and selling high, but in reverse chronological order. So, you wanna find a
penny stock is already up. Ideally, it’s been pumped
up by some mailers, some promotional bullshit on Twitter. Maybe there’s been some faxes sent out if they still send out faxes. If there’s telemarketing phone calls. Every kind of marketing technique that people like the
Wolf of Wall Street use to pump up shitty scams and that way the stock price is high. Then, you just try to find shares to short in order to profit when it comes down. So, ideally the stock has gone from, let’s say one to six in a few weeks on the back of all this promotion. You think this company is worthless, so you’re trying to take
out a loan from your broker to sell shares you don’t
own at six dollars a share. Let’s say you’re trying to find
a thousand shares to short. So, you call up your broker, whatever broker you have, I use Etrade and Interactive Brokers and you try to find shares
in order to short-sell them. That broker will look
through their inventory to see if they have shares
that they can loan out to you. They’ll charge you a little interest rate, it’s very minimal, especially
if you only hold the stock for a few hours or days like I like to do. Some people like to hold stock short for like months or years. They actually have to
do worry about interest because the interest can
really add up over time, but for me, I like to
short-sell pretty quickly. I’m going for the quick drop. I’m not hanging on til zero. So, no guarantees can be made
about finding shares to short. I have whole music video
called No Borrow, No Cry where I’ve seen so many pump and dump, so many scams get crushed, and I know that their
stock is gonna get crushed, and I can’t find shares to short. That’s part of the game. That’s why I’m not a billionaire. That’s why, frankly, I’m teaching because I can’t short-sell
every single scam that I see. Sometimes I only short-sell
like a thousand shares that’s all that interactive
brokers can find available. It’s tough, but that said,
if you find a thousand shares to short of a pump and dump
that’s fundamentally worthless, you can probably make a thousand, two thousand, three thousand in the next few days or weeks and that adds up over time. You short-sell one scam and
then another and then another and more times than not you win, and it adds up to millions of dollars. I have one student, Tim Lento, who’s not just the chatroom moderator, but he is closing in on
a quarter million dollars in trading profits simply
shorting these pump and dumps and holding for several
weeks or several months and he’s winning like 80% of the time. So, check out Tim Lento on Profit.ly. Get in my chatroom. Watch my video lessons. I have over a thousand video
lessons on short-selling. This has just been a little intro guide, but it makes sense. I know some people don’t like to hear it. They think it’s unethical or Un-American, but for me, I mean if
a company’s gonna fail, if the stock is gonna go down, I just wanna try to profit off of it. It’s inevitable. So, you might as well
look for shares to short. Even if you can’t find any,
you can watch it go down and you can see how often this works. Hey. Tim Sykes millionaire, mentor, and trader. Thank you for watching my videos. I hope that they help you. I wanna share everything that
I’ve learned over the years. You can check out more
videos right over there, and also click subscribe
so that you can watch all of these videos. Get that knowledge and become
my next millionaire student.

23 thoughts on “Most Penny Stocks Fail (How I Make Money Short Selling)*

  1. Hey i am from India and i don't know anything can you teach me everything from A to Z so i can also be one of your millionaire students 😊

  2. Still working on getting good at my long Strategy to get pass PDT. I have been watching the short Patterns that you talk about so I think I could Start maybe in the next 30 days but will only take very small positions. The idea that you can have infinite losses scares the h*** out of me.

  3. Game :

    you
    vs
    your broker
    => you lose

    on Tesla
    Goldman saches(prime broker) win $1 bil in Tesla Q2 short squeeze(lose $1,5 bil till 06'2018 , but Goldman Saches pump Tesla stock +12% )

  4. The way I view shorting is that you're buying the risk of the lost profits if the broker sells it and it goes up.

    If It goes up, you're liable for the lost profits, if it goes down, your broker gets their trade fees and you get the difference in costs for the broker not losing profit, the broker wins either way, you win if you play it right.

  5. egyjogdijam változatlan :)))) és orokre magmarad nektek :))és a digitális cyber AInek :)))))))) ha megérkezik holnap majd lokok valamit nektek :))))))))

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