1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

How I Made My First Income In Penny Stocks

Discussion in 'Making Money' started by GrumpyBoy, Nov 18, 2016.

  1. GrumpyBoy

    GrumpyBoy Regular Member

    Joined:
    Nov 18, 2016
    Messages:
    305
    Likes Received:
    339
    Gender:
    Male
    In 2013, I watched a movie "Wolf of Wall Street". By watching this movie, I got fascinated about stocks. Then I started watching tutorials about penny stocks and how you can use them to earn some money. (hundreds if not millions like Jordan Belfort).

    So here is the plan . . .

    1) You target a stock which is going to fall after sometime, means if a stock is selling at $15 per share now, and $5 per share after few days, the stock is failing. And we are going to target those stocks. You have to predict which stock is going to fall.

    2) Borrow the stocks you have selected from a stock broker. For this guide, suppose we borrow 1000 stocks costing $5 each, means we invested $5000 in stocks. And we have stocks worth of $5000.

    3) Sell the stocks as soon as you buy them. This is very easy because whenever you borrow stock from a stock broker, it sells in not time because people really want them and get rich soon (in their dreams). Means we now have $5000 in cash

    4) Wait for the stock to fall, means wait for its price per share to go down. And whenever it goes down, buy all the stocks again. Suppose the stock we purchased at $5 per share is now only $3 per share. And now we can purchase them at only $3000 for 1000 stocks.

    5) Now give back the stocks you borrowed earlier from stock broker with specified interest/commission. If you give them 10% commission (no one gives that much), you are still making $1800.

    Remember, you will have to be very patient. Theoretically, there is no loss in this type of "short selling". Because if price of stock goes down, then you make money by above method and if price goes up you can sell them at higher price than you paid for it.

    Happy earnings
     
  2. Repulsor

    Repulsor Power Member

    Joined:
    Jun 11, 2013
    Messages:
    775
    Likes Received:
    280
    Location:
    PHP Scripting ;)
    You target a stock which is going to fall after sometime.

    So easy. Wow. In the movie, Dicaprio is the broker. He gets money whether or not client is at loss or profit. Predicting stock behaviour is not that simple. You may end up in profits or loss and the probability is almost same on either side. No one can exactly predict the stock behaviour. Technicals helps, but no one can see an unexpected bear or bull.
     
    • Thanks Thanks x 3
  3. GrumpyBoy

    GrumpyBoy Regular Member

    Joined:
    Nov 18, 2016
    Messages:
    305
    Likes Received:
    339
    Gender:
    Male
    i am telling you to borrow stocks and sell them immediately at same price you bought them. so even if the stock price doesn't fall, you can give the money back to broker and buy new stocks
     
  4. girolamo

    girolamo Regular Member

    Joined:
    Jan 12, 2016
    Messages:
    363
    Likes Received:
    107
    Would you stop posting useless threads in order to increase posts and likes?
     
    • Thanks Thanks x 4
  5. GrumpyBoy

    GrumpyBoy Regular Member

    Joined:
    Nov 18, 2016
    Messages:
    305
    Likes Received:
    339
    Gender:
    Male
    i am not posting any useless threads in my opinion. If you think so, then you can remove it.
     
  6. Sombrero

    Sombrero Supreme Member

    Joined:
    Feb 28, 2011
    Messages:
    1,209
    Likes Received:
    1,032
    Occupation:
    Driver
    Location:
    On The Road
    Ask that to the abcman...
     
    • Thanks Thanks x 1
  7. ttmschine

    ttmschine Regular Member

    Joined:
    Mar 27, 2013
    Messages:
    418
    Likes Received:
    188
    Of course it's useless.

    In your head you're going to make money whether the stocks go up or down - why don't you just go the the stockbroker, tell them your plan and they can just hand over $1800 and save the messing about in the middle.

    What a wally.
     
  8. cynic

    cynic Regular Member

    Joined:
    Oct 16, 2010
    Messages:
    201
    Likes Received:
    11
    Margin trading ? LOOOOL....................

    What a simple way to lose money
     
  9. asap1

    asap1 BANNED BANNED

    Joined:
    Mar 25, 2013
    Messages:
    4,961
    Likes Received:
    3,185
    Penny stock? :p:p:p:p
     
  10. articlewritingwork

    articlewritingwork Power Member

    Joined:
    Apr 19, 2016
    Messages:
    540
    Likes Received:
    58
    I think there is big difference what is shown in movies and in real life