The world is full of clowns bashing penny pumps. Since 99% of penny stocks that move are frauds, you don't have to be a genius to do it. This means most if not all of you qualify to be penny stock gurus. Sykes makes 99.9% of his money selling soap. If it was so easy to just short pumps, or go long for that matter, he'd have long ago retired to a desert island, with a harem of skanks. His biggest edge is, he frontruns his 100's or 1000's of suckers. This virtually guarantees him a profitable exit, not matter how sucky he is. Any other questions?
âThe world is full of clowns bashing penny pumps. Since 99% of penny stocks that move are frauds, you don't have to be a genius to do it. This means most if not all of you qualify to be penny stock gurus. Sykes makes 99.9% of his money selling soap. If it was so easy to just short pumps, or go long for that matter, he'd have long ago retired to a desert island, with a harem of skanks. His biggest edge is, he frontruns his 100's or 1000's of suckers. This virtually guarantees him a profitable exit, not matter how sucky he is. Any other questions? â Quoted by stock 777 Good observation, the odds are he is nothing but another Tokyo Joe or old Dan Dorfman and Jim Cramer tag-teaming the little guys. Most are too young to remember the âSmart Moneyâ Scandal and all the allegations against kind hearted Jim Cramer and Grandpa figure Dan Dorfman! Again, why or what Clearing House is allowing new traders to short sell penny âpump and dumpâ set ups? Thatâs a quick way to lose all your cash and some! I watched a pump and dump happen with WETR, I played this POS and once the Pink Sheet Market Makers pull their bids, itâs free fall! I wrote a post about that stock and how it was not trading rationally, I sold out at $1.15-$1.25 and this stock the next day fell down to $.70, in moments, maybe Timmy Skyes was part of the group who pump WTER up. There are a group of guys who know how to get these going. I worked for a penny stock Market-Making firm, the secrets and stories I can tell you are comical how stocks are walked up and shaken down. We could walk a stock down by $1.5 like MOJO by pulling our bids collectively, next thing the stock falls from $3.25 to $1.25 on 15,000 of volume! Itâs horrible and strange any Clearing House worth their salt would allow new traders to short Pink Sheets, Gray Market and BB stocks, I donât get that! With our firm, we had no problems shorting these stocks to balance the book, you had to short the stock because we still had to pick up the phone and call the Ax and ask to buy some big size for some Ameritrader or Etrader. The Pink Sheets and OTC BB system is nothing like Nasdaq and the ECNs, Timmy uses that on his side, pull the bids and watch as fearful sellers (His own follwers of his penny stock cult) throw Market Orders on Pink Sheets is crazy. Exactly, I followed Tokyo Joeâs knowing he was doing this same crap, front running POS. I saw things with Oliver Velez and Greg Capra when Etrade flew twenty of us out there to advise them if we (collective thinking group for the hyper-active traders) thought these guys had merit. I canât say for sure if Greg and Oliver were sending out their calls Esignalâs Stock Radar and Advanced GET are cheaper than Capra and Velez premium $500 a month services Pristine Capital was offering us. I donât trust many talking heads, I watched my cousin loose his retirement following Dan Dorfman and Jim Cramer when they both wrote for Smart Money and Maria Bartolomaâs husband and his Individual Investor magazine, we on the West Coast got three days later than the East Coasters did. The most ethical guy I found was a old guy who wrote âThe Bowser Letterâ, he was not a pump artist and did a good job reviewing a small stocks up and downs, he warned his investors before it was vogue to say âYou can lose a hell of a lot of money buying a over bloated pig pump and dump! Mr. Bowser was cool!
You get lucky with sometimes with Pink Sheet âpump and dumpâ stocks less often than not. I got lucky with a horrible little stock I was following for weeks but never put on a trade. I was watching that POS- FFNT trade for a couple of days and so I bought a little to test the waters, something did not feel right so I dumped the stock the next day. 2013-09-16 15:33:56 A11qbu Sell FFNT 5000 0.33 3.10 0.00 1646.90 2013-09-13 15:32:01 A11qbu Buy FFNT 5000 0.32 2.50 1602.50 0.00 Totals: 5.60 1602.50 1646.90 Summary Total: 44.4 On day 3 FFNT opened up at $.15 and fell to its current price of $.04 now. They filed BK, the stock was not trading like anyone was expecting it to fall, itâs movement was normal but something did not feel right. If you want to learn to trade Penny Stocks, donât go cheap because you don't want to pay for the real-time data of $30 to $50 extra. You need to watch your victim by reviewing the daily volume over months and set your stock scouter to notice any volume change of 100 percent or more. The tuition cost of trading penny stocks is high, you won't lose as much capital as you might trading a wild stock like TSLA or HLF once it goes nuts. The most you should ever buy of any penny pump stock is $2300 worth to $2900 and don't be greedy! Your goal is a quick 50 to 100%, once you hit that target or notice buy-side volume slowing, get out now! With any stock, watch the stock for a few days if you have experience trading off the Level 2 and are not a huge fan of charts, I have used the Level 2 and only pretended to understand all the nuances of Charts when I worked at the Penny Stock "Market Maker Boiler Room" we were always selling into the strength, don't do this and try getting every penny out and your stuck holding the proverbial "wet paper bag full of rocks!". Always keep your eye on the bids, are they getting absorbed easily, do you notice a team of guys tag-teaming the stocks using ARCA or two different Market Makers (NITE, ETRF, and VERT) i keep my eyes on all the time. Find out what Market Maker does the most volume in your stock (Link below is part of the clue) that one key find will allow you a edge over some of the weaker and uneducated gamblers. Pink and BB stocks will attract investors looking to offset some big losses or hope they will find the next EDIG (.0001 to $21 in 1999-2000)or the great mining pump and dump in 1990-1994 (.00001 to $160 a share!) Some will attempt to trade the "pump and dumps" so for educational purposes with naming any stocks and my goal is to reduce your losses. I don't think anyone with less than five years of trading off the LL2 and charts should sell short Pump and Dumps are buy into the frenzy. Please don't yell or name call because I desire to reduce some of the nice people's losses and give them realistic expectations on what you are going to make or lose. Studay this data here! http://www.otcmarkets.com/market-activity/broker-dealer-info Next, remember there a mailers sent out from different Pump and Dump hubs, you don't need their mailer if you have your stock-radar or stock scouter set to notice anything unusal in volume, even if it's just churning. Never invest much in these black-hole of money, save that for Macau! http://finance.yahoo.com/q?s=FFNTQ and pull up that pile of trash WTER and see on the 60 min, Monthly chart how wicked this stock got once it was loaded with suckers! Look at the 30 minute Chart of WTER and how they were buying this stock up before their $3 million dollar radio and internet blitz. Fox Business News Correspondent was never punished for his $25,000 paid endorsement of PSON, PSON has never recovered once that news was made about it. Penny Stocks, Pink Sheets and B.B. stocks are not easy to trade, unless you have 100 of them on your list, updating the list for stocks heading into the âdead zoneâ of volatility or graveyard of Pumper interest, itâs not a easy way to make money. Youâre better off chasing other stocks above $3.00, stocks with higher volume and sponsorship of Wall Street. Three weeks ago, one really smart Elite Trader who knows the âDry Bulkâ and âShipping Industryâ posted he bought some DRYS $2.50 Calls, what a huge trade that was, he bought those Options on a dead stock at $2.00 per share (Today was $3.75!), was it a 5 or 10 bagger trade? I am guessing. Elite Trader tells us not to post penny pumps because Elite Traderâs owner knows Yahoo Message Boards are filled with stock pimps with leather jackets full of ideas. I respect this site for stopping the Pump and Dumpers! I think I got labeled a pumper on TASR at $10.60, hit $14.42 today and RGR, I am a pumper for TASR, RGR and SWHC. What price is a stock no longer a Pump Stock?
jesse - i was IN a bunch of tokyo joe's stocks, not his chatroom. i remember when the stock he pumped on friday was on some major publication, i think the ny times, over the weekend on some french data (? it's been 15 years) and it exploded. people congratulated him on his great pick and his new "fortune" and he said he was pissed/barely had any shares of it anymore, sold into ppl rushing to buy his new pick on friday, and if he'd known it would be in the (times?) he would have held a lot more. that one made up for the losses i took in entering his stocks. i learned later to avoid pumps and such. btw, with tim, search for my name and sykes. i reviewed his book (good throwaway / vacation book) and why he teaches rather than only trading his couple of setups. his stuff isn't anything new, he's been associated with companies which have had problems (though not him directly) and he'd sell anything for a dollar. i agree RE: pink sheet stocks and shorting. however, there would also be bigger squeezes; the MMs in them do NOT have to honor buys or sells, so they can force price up higher / force shorts to cover. a bunch of clearing firms don't even allow under $3/under $5 / small float listed/nasdaq stocks to be shorted because they don't want to deal with risk from short squeeze. btw, i believe pristine is still around. velez/capra got into fights with one of them getting the company, then lawsuits, capra (i think) finally got it, velez co-founded or founded some companies designed to teach you how to trade, at least one of which "mysteriously" blew up leaving customers funds lost. there are tons of warnings on ET and other places to stay away from velez, and there's lots of stories related to dealings with him that don't paint oliver in the best light.
I think you mean The Browser Report. "Max Bowser passed on to that big stock market in the sky." - See more at: http://www.legacy.com/obituaries/dailypress/obituary.aspx?page=lifestory&pid=155347992#fbLoggedOut"
I read about half of Tim's book which was decent. Most of his edge comes from lower liquidity stocks from what I can tell, and the majority of his winners (during the book anyway) were short trades. He's pretty well-known for shorting penny stocks often...at least historically. He didn't fare well with this hedge fund because the moves he makes are on low liquidity assets, meaning that he can't scale his strategy with much upwards momentum. He can make $100k year in year out, but I don't think 50 million+ years like hedge funds do is something he is capable of because of his strategy. However, knowing this, after his hedge fund fiasco, he has leveraged his short term fame and created a network of investment education sites to pad his income while he trades.
Interesting. There are a number of other small-time successful traders that have also ventured into selling investor education to supplement their incomes, such as Gary Smith, Walter Bressert, R.E. McMaster, Mark Cook, Linda Raschke, and others. Helps smooth out ones income because trading isn't always consistently profitable. Sometimes it can lead to much more. The late Marty Zweig ran a letter back in the 80s before managing money.
Dude, you have to clean out your mailbox if you want to receive PMs. Anyhow, check the P.S. below... Anyway, the fee for Tim's alerts is only $50/month. Here is his explanation (from profit.ly) why he doesn't just short: (not to mention the bigger % gain is riding the stock up) Now I would like to hear the explanation how to make 100%+ by shorting stocks, but again, this just underlines my point earlier, the bigger gain is in pumping the stock. P.S.: Here are his closed positions: http://profit.ly/user/timothysykes/trades Just quickly checking his last 10 trades, he is 5 long and 5 short, just as I mentioned earlier in this thread. So it is misleading to think that he only shorts stocks....
Thats real genius, you can make more on the upside than down. I never realized that. Thanks for the insight. Sykes will play anything he can frontrun.