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Shorting Penny Stocks Is Stupid! Here’s Why.


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61 Thoughts to “Shorting Penny Stocks Is Stupid! Here’s Why.”

  1. Austin Bakanec

    11:12 That would’ve been a 11,000% return if you bought it at $0.10

    1. Ballislife 98

      Austin Bakanec put in 10,000 get over 100000!!! Damn

  2. Seth Mcclain

    Trade like a sniper. Problem solved.

    1. ClayTrader

      @Seth Mcclain I agree. But your solution to the problem is very poor. The logic is full of holes.

    2. Seth Mcclain

      Any strategy can be played poorly. Its the trader that matters. I’d have to say for Sykes, and plenty of his students, seemed to work rather well. I’ve also seen people screw it up by ignoring rules. Including me.

    3. ClayTrader

      @Seth Mcclain You are missing my point. Again, per the stocks that I defined in the video, there are some where you may “want to get out”, but can NOT due to the flow floats and aggressive purchasing at the offer. So you may have thought your risk was x, but it turns out to be y which could very well be much higher than you thought. I get it though, you spent money on Sykes programs so you want to defend at all costs. That’s cool. Good luck to you.

    4. TheSmileyFacedPizza

      @ClayTrader Damn, you are cocky and defensive. I’ve watched a few of your videos so far, and I enjoy them and think there’s very good info in them, but your attitude and logic are so bad. You’re very good at trading, I’m sure of that. The way you think works well with stocks, but it’s not logical, even though your success has made you believe you are the master of logic and reasoning. There’s never any need to be so arrogant, and it usually isn’t very good for you. Your methods may be wrong sometimes. There’s nothing wrong with accepting that. And when you aren’t wrong, perhaps your method isn’t the only right one. Even if you are right about something (which you are most of the time, honestly), you don’t have to attack the other person. Every single time someone sees something differently than you do, you automatically claim that they have no experience, are going to fail in the stock market, and/or are dogged supporters of another trading educator. You have no idea who that person is, what they do, or even what they look like. It’s almost like calling someone on the phone, and after they say hello, you say they’re a failure and have no future trading stocks. That’s not necessary. Remember that if someone is watching this video, they are seeking to learn and have become one of your students. As a teacher/educator, you should have much more productive input for your students. If you can’t or don’t want to provide constructive criticism, just don’t reply, and they won’t bother you for another second of your life. When you do provide constructive criticism, there’s no need to add a presumptuous assumption at the end, especially when the other person has said nothing offending, such as Seth here. I wish you the best of luck with your students in the future. I wish you luck with stocks as well, but I’m sure you don’t need it.

    5. ClayTrader

      @TheSmileyFacedPizza You are arguing about stocks I am not talking about. So I’m not sure what your point is. I agree in regards to 95% of what you’re saying, but this video is for that 5% of stocks that, as I’ve stated, get very little volume and then BOOM, get volume.

  3. Anna Smart

    Your videos are so good! Thank you Clay 😉

    1. ClayTrader

      @Anna Smart Thanks. Glad you are enjoying them.

  4. Lou Black

    Thank you, so interesting

    1. ClayTrader

      +Lou Black Glad you enjoyed.

  5. Og maco Sheesh

    Lets just admit … Tim sykes diss track brah brah haha

    1. Capital Creators

      +Og maco Sheesh everyone speaks of him as if hes vuldemort

    2. charles chinda

      KurtleTheTurtle that’s just because they can’t stand his gut

    3. Maria Reyes

      If you want to learn how to win over 75% of your penny stock trades then I recommend you go here: HootPenny. info

  6. Vladimir Batalin

    8:40 “Its time to short” – No, its not. Who told yo so? Shorting pumps (especially in subdollar stocks) it’s bit different then shorting FB in tousand blocks every 20 cents (sorry for my poor english)

    1. ClayTrader

      +Vladimir Batalin Of course you’re going to say it’s not time to short. You have hindsight at your back. If shorting penny stocks is so easy, you must be a billionaire right?

  7. Collin Rhodes

    ofcourse it seems stupid when you don’t follow pumper emails and watch volume and analysis I

    1. ClayTrader

      +Collin Rhodes If only if it were “as easy” as you make it seem. I know many KBIO traders that are no longer trading after that “easy shorting” trade.

  8. Frank Hernandez

    Penny stocks rock.

    1. ClayTrader

      +Frank Hernandez That’s sorta a contradiction because no true professional “trades penny stocks”.

    2. Frank Hernandez

      +ClayTrader I never have traded penny stocks before I was just kidding my question was what kind of software do professionals use to trade forex?

    3. ClayTrader

      +Frank Hernandez There are quite a few. I’d start with Interactive Brokers.

    4. Frank Hernandez

      +ClayTrader Will you trust large somes of money to them like over 10 million?

    5. ClayTrader

      +Frank Hernandez Interactive Brokers? Yes, I would.

  9. Green Back Boogie

    Great Vid, thanks bro!

    1. ClayTrader

      You’re welcome!

  10. Reno vlogs

    I love Clay trader videos.. but Tim Grattani has proved that you can make money shorting garbage

    1. Mahdi Elghoul

      If you want to learn how to win over 75% of your penny stock trades then go here now:

    2. Andrew Collin

      Yes you can, but thats not what we are talking about. We are talking about there being lower RISK for a normal trader going long on a pennystock than going short (What hes talking about in the videoo)

    3. Brayan Martinez

      Ask Tim Grittani how much he lost in $LAKE. He lost almost quarter million with this ticker

    4. Will Meginnis

      This shows your lack of knowledge about small caps, there’s a really slim percent of pennies that run that are shortable.

  11. Travis Davidson

    I would encourage everyone to look at his example’s current performance “LEXG”. Then weigh what has been said with what was proven over the long term, not short term.

    1. ClayTrader

      You realize you can’t just hold for as long as you want, right? If you get in at the wrong time and the price goes against you, then SHORT TERM, there is something called a margin call that will happen. I would encourage you to look into what a margin call is. I don’t disagree that all these penny stocks, in the long term, will go to zero, but problem is, your broker is not going to “wait and see” if they are getting crushed alongside you.

    2. D Thurman

      ClayTrader that one time.. that one time.. just a question bro, I love your vids, here is the question… If you go in, with s stop loss, being shorty on a real disciplined level, will you succeed? knowing you’ll short at a level most wouldn’t, but doing it often to gather wealth on a minimal level, will it work? don’t ride it. be disciplined, go in with a minimal standard and leave at it! let me know brother, I’d love to hear!

  12. Urška Rubin

    Ever heard of a stop loss ?

    1. Urška Rubin

      That is true, sometimes it empties your pockets a bit deeper. But I’ve been able to cut my losses successfully so far these two years so I think stop loss is in general a good saviour

    2. ClayTrader

      In general, yes, it is. But if you’re good at finding stocks that are going to drop, why limit yourself to just 100% gain in a best case scenario? Why not have the upside of 1,000’s of percents like what you can with options.

  13. Zoltar zoltar

    28 mins of buzz words

    1. ClayTrader

      It’s the truth. Just ask DRYS people.

    2. Michael Dillon

      drys—-crazy chart!

    3. ClayTrader

      Yup. Back to being nasty now, but it had plenty of “pops” that crushed shorts.

    4. Michael Dillon

      clay lots of assholes why???

    5. ClayTrader

      Because it’s the internet where everyone gets to hid behind their screens lol

  14. Randy Olson

    very simple and true. thank you for taking the time to make this. God bless

    1. ClayTrader

      You are welcome. Glad you found it helpful.

  15. CzaristMatt

    You’ve got a power point and everything! Now point me to your stock 101 class so I can start making money!

  16. Trevor TheNbaFan

    Thank you very much, opened my eyes, very intelligent.

    1. ClayTrader

      Thanks for the feedback. Glad it could help!

  17. Helen Gohlke

    Thanks for the great info. I will have to learn more about options.

    1. ClayTrader

      Cheers. Glad it could help. If interested, here’s another video that really makes the case for options that much stronger –

  18. myshowvids

    The title should’ve been called “ClayTrader Is Stupid! Here’s Why.” The way ClayTrader explains in this video is very misleading and most penny stocks are always going down trend. The chance for a stock market to spike so high like this video is 1 out of 20. If you just put a stop loss, do your DD and graph analysis of support and resistance, you would minimize your risk at least than being that stupid guy who loses 100% of the money. There are tons of stock markets that are going down trend and most are short sellers. Short selling has a bigger advantage in penny stocks. Period.

    1. ClayTrader

      Yeah yeah yeah… it is so easy… that’s why there are so many penny stock hedge funds out there… because I mean this is like shooting fish in a barrel… lol….

    2. prince_of_golf prince_of_golf

      myshowvids what does DD mean?

    3. Ram

      myshowvids Teach me your ways partner👌🏻

    4. VoidSurf

      @prince_of_golf prince_of_golf Due diligence, probably

  19. BloodOnMars

    I’ve never shorted before so I want to ask you this: is there a time limit in which you need to Buy-Back the stocks for your broker?

    Because if there is no time limit why would anyone bye at a loss when you know it’s a pump-and-dump it’s going to return to a penny stock?

    For example: let’s say there’s a stock that’s been $3 the entire year and it shoots up 200%. You decide to short it and it shoots up 700%. Why would anyone buy at this point when you know it’s going to return to 0%?

    Can’t you just wait a week until it returns back to $3? And make 200% profit?

    1. ClayTrader

      There is no time limit as long as the price doesn’t go up too high. There is a constant cost though since you are taking a loan technically and therefore paying an interest rate.

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