Here’s a chart of a stock I shorted last week. I don’t short sell as much as buying, but when the opportunity presents itself I will definitely jump at the chance because my trading system allows me to trade any stocks. I shorted TNGO after I received an alert from Thestreetsweeper.org that the company may be involved in fraudulent activities. Just like Citronresearch.com, Thestreetsweeper.org also has a large following of loyal traders that will trade-off of their alerts.
When they release an article about a stock they usually do it on higher-priced stocks which are not penny stocks however the volatility in these stocks surges and at least on the day of the alert the end up trading a lot like a penny stock. Sometimes I short these stocks and other times I wait for the stock to bottom so that I can use my Buy Zone trading system to buy them for a bounce trade. These alerts can be very profitable if you know how to trade them.
I shorted 2000 shares of TNGO at 18.29 when the stock cracked support on the third attempt. I covered 1000 shares at 17.60, and I covered the remaining shares at 17.20 for in total a$ 1780.00. Not bad for a day trade of several hours.