My current strategy is to short penny stocks that have paid promotional mailers out where they have spent over $100,000 on the promotion.
I also like the price to be trading over $1.00
Then if the owners have committed stock fraud in the past that is nice also.
Or if they have issued themselves millions of shares, or others, that's ok too.
Right now I am short AMEL the company reported on their SEC filings that they had total assets of $500.00 that's five hundred dollars.
But their market cap for the stock was at $150,000,000.00 that's one hundred fifty million dollars.
The owners issued themselves a billion shares of stock, but it looks like they haven't started selling it yet, so that is still to come.
Today the stock traded 150,000 shares and 120,000 of those shares were traded below the buy order I had entered last week. I put in a buy order at .6005 cents, I just entered that to see what would happen. Well 120,000 shares traded today at .60 and I didn't get filled. Not sure if my goofy price had anything to do with it or not?
I don't really care, I will just wait another few weeks and at some point I will get filled.
AMEL I shorted at .90 I could have got a much better price than this, but I am just horrible at trading, I always seem to buy the high and sell the low.
That is why I have adopted this new strategy. It is more of a short and hold until it goes down trading strategy. If the stock goes up I will short more.
Right now I am trading less than 2% of my account on each trade, until I have a few trades that run against me, after that happens then I plan to increase in risk a little.
Unless I can find enough of these stocks to just own a large basket of them all at around 1% of my account then just ride them all down over time.
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