WHY YOU DON’T SHORT PENNY STOCKS – How I Turned $160 INTO $3000 W/ Options Trading – NOT DAY TRADING

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If you shorted $BTUUQ today, chances are you blew your account, just another reason why options trading is better than penny stocks. In this video, I explain the situation a lot of traders got into today especially those trading penny stocks using Timothy Sykes strategy and how they could have done it differently to protect themselves. I also explain how on this same trade many lost money on trying to short, I came out with just under $3,000 profit while only investing $160. Best part of all, my play was entirely based upon fundamental analysis, and required zero chart patterns or technical analysis to make money on and I didn’t even have to slave in front of a screen an scalp for 30% or wait for a pattern, I just bought an options contract and held for a couple months and woke up to money.

I make a nice little appearance at the end so watch it!

Although I made money buying calls on $BTUUQ and people lost money on it by shorting it although it was a penny stock, the point I was trying to prove is that you still could have bet against the stock without shorting it, using a sketchy overseas broker like suretrader, and instead used options trading and bought a put option. If you did this, you could have had the same opportunity to profit on the way down, if not even better, and wouldn’t have had unlimited risk or ran the risk of putting your money in a broker who inconveniently stops working when the position is going against you.

The real winners of anyone advocating to short this penny stock was the people selling the DVD’s and the sketchy brokers collecting your fees and overleveraging you so you blow up your account.

Further, I wanted to show for the current options traders trading now, that you didn’t need to day trade this in order to make money, and that you would have actually been murdered by implied volatility if you bought in chasing and how the best approach is longer term swing trades. The key here is risk management, avoid day trading, don’t chase and use real fundamental analysis to put the odds in your favor. Moral of everything: you can make a lot of money being responsible. Don’t take unnecessary risks!

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Comments

Anthony Baltodano says:

Nice setup:) it will get you more people for sure.

Anthony Baltodano says:

Nice setup:) it will get you more people for sure.

J14 Aye says:

Why does everyone only talk about Tim Sykes when it comes to penny/day trading, look at Cameron Fous , Kunal Desai , Sean Dekmar , Ross Cameron, list goes on etc etc who all have successful chatrooms/service with students and mentors all showing their winnings and losses, and still subscribers still slander against that community just because of one idiot. Educate yourself on the whole community not just Tim.

pozionmynd says:

once again, great point!

JD A says:

This video just made soooo much sense to me, thanks man for spreading knowledge

Skatehawk11 says:

Hey, do you have a video on option trading for beginners? I've been penny stock trading for a few months now and options seem interesting but I can't find any simple videos explaining the difference or what the terminology means. Thanks.

Brutus Empire says:

tell me another good book to read. i read the richest man in babylon and the one before that.

Camer0n97 says:

Opinion on weekly options?

Html Mentor says:

Tim Sykes fanboys never understand that Tim is payed to trade if it goes left or right up or down he gets paid due to ppl buying into his past success also they take big ass positions like 4,000 shares is small to him atleast wuth options it is cheaper in most cases and you can define risks with things like vertical spreads

Japheth Kisangau says:

Those chat rooms are full of garbage.

Noe Davila says:

Great video brother! keep them coming :)

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