Shorting Penny Stocks Is Stupid! Here’s Why.

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Comments

Joseph Kim says:

You may have already answered this question, but why do options sell higher if the price goes down?

beanseller says:

Well "Clay", if you know a stock is being pumped as in everything on Investers Flub, surely you can make a ton of money shorting the pump….. ntek? lolzzz

Arbi B says:

thats why you dont short at 25 cents like a dumbass, you short at the top

Knuckle_Bump says:

"The company must have a minimum of 7,000,000 publicly held shares outstanding.
The stock must be listed on the NYSE, Nasdaq, AMEX or any national stock exchange..
For the past 5 trading days, the closing price of the stock must have a minimum per share price for a majority of trading days. This means that IPO issues cannot have options traded on them until 5 days after the initial public offering date.
There must be at least 2,000 shareholders in the company."

According to the above,  I am guessing that options can't be written on penny stocks.

DAV URGE says:

Question Clay:  If you got in at .25 wouldnt it be a safe move to jump out when it got up to $5 or $7?

Chris Daly says:

This is the biggest waste of time. This is such spin it's disgusting.

john Crep says:

i feel like this video is a waste of time! I like to expand my sources and learn from everybody to develop my own theory in the market but sayings shorting is stupid is pretty stupid! Go long every time on a bear market and see what happens. I feel like your talking about the die hard short sellers or the people who just enter t
he market

john Crep says:

Alright to my short sellers all you have to do is adjust to the market! I would have gone long for the first L, easy money being made

Lloyd B says:

The thing with these trades is you wouldn't just start shorting it without the proof it was being pumped as well as watching the quotes or you deserve to get your face ripped off.
Anyone dealing with penny stock needs to be doing their research first and needs to understand what they are doing.

"Greed is good" – Gordon Gekko comes to mind…

I'll stick to trading in Options, but nice share Clay.

rbattles52 says:

This is a great video. I wish I had seen this earlier in my trading career. Shorting penny stocks is very risky. I have literally had times where I was right 40 times in a row and then was wrong 3 times and couldn't get out fast enough and blew up my account. Very good info. 

Kris Danielson says:

Well clay I do agree if you have the logic that you mentioned at the start of the video that is stupid however if you know what your doing and get the break downs and when I breaks your technicals than it is fine to do . If you don't know what your doing you will get burned 

ddanvos68 says:

Why dont you discuss stops in your theory?

James Options says:

Hi "Clay"

just wanted to say a big thank you on this video. I'm new getting into trading, mechanical engineering student so math and logic are strong with me and your risk vs reward case study example here is just so mind blowingly monumental to my trading ignorant brain lol. 

Subscribed and hope to watch and learn some more from you

James

Anna Smart says:

Your videos are so good! Thank you Clay ;)

Wynn says:

I can't short stocks under $3? how can people short under $1?

ClayTrader says:

Sanzio Angeli – my entire trading education is based around how to trade "safely" (or in other words, "managing risk"). You can learn more here: http://claytrader.com/training/

Sanzio Angeli says:

Thanks for the video! I'm pretty new to the stock market, and I definitely see the risk now.  Do you have a video on how to safely trade with options?  I don't really understand how I can go short with options and still have the possibility to make more than 100%.  I THINK I understand options…. its basically like an insurance policy for your stock right?  If you don't get back no worries

Seth Mcclain says:

Trade like a sniper. Problem solved.

Nico Creel says:

This is true. If your going to short stocks be sure to scalp play it intra day with a 3:1 reward risk ratio or buy puts. Risk management always being rule #1.

okeen morris says:

Hey Clay … silly question but, is there stop loss in options? 

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