PDA

View Full Version : Shorting Down Penny Stocks



Street Authority
08-14-2014,
Dear Forum,
I trade penny stocks, and have noticed on many occasions that just when things are looking positive for a stock, bashers will come in, and the price will drop!
Is there a strategy that is used by these people to manupulate the price down to allow them to buy in? Do they simply short it until the price drops and then cover to buy in?

BlaineTarr
08-14-2014,
A) Penny stock companies trade for pennies because they are worthless and most have ZERO assets and lots of liabilities.
B) Basher theory is over-rated. Pumpers inflate the prices so they can sell. It's simply time for the front-loaders, promoters, and company insiders to start selling off and the bashers just happen to finally be right (they've been there all along, but most don't want to listen) so you realize them after its too late, and they are to blame right?
C) Shorting penny stocks is possible if you have the right broker.