TheGlobe.com Inc (TGLO)

[mtlebomac]

Agreed! When I slapped the ask yesterday at .10 to take out CDEL w/ 19665 shares, I owned up to it. Granted some noob immediately sold into the bid and killed the run, but if you're (not you PNS) gonna espouse trading tips, put up or shut up.

We can all check the trades. All those 5000 trades at .08#, what for ~$400 per, or that 50k block between 2:30-3:30 for $4k? PFFFT....lol, c'mon man, "profit" ....what profit? You're getting short-term-cap-gained... unless you're trading inside your IRA like I do. But then, it's rare to trade on margin in an IRA, especially with the $2.50 rule hanging over you. I have to call BS, too.

And just in case (for NOOBs) you're wondering what the $2.50 rule is...
http://tradetheticker.blogspot.com/2014/02/question-what-is-250-rule.html


The $2.50 rule applies when you are short selling stocks that are priced under $2.50. Basically, the rule states that for every share you are short, you still need to put up $2.50 of capital, even if the stock is priced lower.

Why does this matter? Let's say you have a $1000 account and you want to short sell pennystocks. If the stock is under $2.50, you will not be able to take a full $1000 position, even if you wanted to. Here's the math:

You have a $1000 account;

For ANY stock under $2.50, you must still put up $2.50 in capital.

Divide $1000 by $2.50, and the MOST shares you can short is 400 shares, REGARDLESS of price.

This can be a huge frustration for small accounts. You might have the perfect supernova chart and the stock is trading at $1, but you can't short 1000 shares. You can only short 400 because of the $2.50 rule.

Here are a few examples of the MOST shares you can short based on your account value:

$1000 account - 400 shares max
$2500 account - 1000 shares max
$5000 account - 2000 shares max
$10,000 account - 4000 shares max
$25,000 account - 10,000 shares max




TGLO$$$