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 sale 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 you’re 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 want to 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 two thousand dollar investment you sell a thousand shares at eight you make eight thousand dollars 8,000 minus two thousand six thousand dollar profit with short selling it’s the other way it’s the same exact kind of thing you’re buying low and selling high but in reverse chronological order so you want to find a penny stock that is already up ideally has been pumped up by some mailers some you know promotional 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 is gone from let’s say 1 to 6 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 own at $6 a share let’s say you’re trying to find a thousand shares too short so you call up your broker whatever broker you have I use II trade 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 the short sale pretty quickly I’m going for the quick drop I’m not hanging on till zero so no guarantees can be made about finding shares too short I have a whole music video called no borough 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 of 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 thousand shares too 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 pumping 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 lee 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 unamerican but for me i mean if a company is gonna fail if the stocks is gonna go down I just want to try to profit off of it it’s inevitable so you might as well look for shares too short even if you can’t find any you and watch it go down and you can see how often this works hey Tim Seitz millionaire mentor and trader thank you for watching my videos I hope that they helped you I want to 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 [Music]

22 Replies to “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 :

    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.

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