Penny stock pumping by newsletters or chat rooms often provides great shorting opportunities. We don't trade as many penny stocks as we do NYSE/NASDAQ stocks but today Crossroads Systems ($CRDS stock) was pumped for no reason and went up over +100% today with no news out from the company. We saw it as a prime example to short the pop. Penny pumps usually all end the same way = crash and burn right back down.
Started shorting at $0.57 and added more at $0.52 when we felt the buying was drying out. We covered into weakness and made almost 35% return on our short position in just under an hour! We didn't make too much on this trade but wanted to show you an example that daytrading doesn't require too much capital all the time.
All live trades done by us are called out in the MookTrader stock chatroom for all our members to follow, learn, and watch.
Net Profits: $1,779