***THIS JUST IN, U.S. RESIDENTS CAN SHORT PENNY STOCKS!*** ***THIS JUST IN, U.S. RESIDENTS CAN SHORT PENNY STOCKS!***
*Stunning new revelations, I've often seen the list, often seen penny stocks on it from various links, but after digging further and further, I find many many penny stocks that have been of interest to me on the shortable stocks list at Interactive Brokers.
One needs simply $2,000 USD to have a margin account to be able to short the stocks on their lists. And to my astonishment, the SEC has no rule restricting the short-sale of what were in the past looked at as "non-marginable" stocks, or stocks that trade under $3/share. Apparently my broker had lied to me when he told me that you can't short penny stocks, because you can! And Interactive Brokers isn't afraid to make that public for us. They have 10,612 stocks which are shortable and I'll be damned if a great many of them are frickin' real down to earth and true penny stocks, stocks trading at literally a penny or two!
Feel free to browse the list for yourselves: http://www.interactivebrokers.com/en/trading/shortableStocks.php http://www.interactivebrokers.com/en/trading/SearchShortableStocks.php?cntry=usa&tag=United%20St...
***No U.S. SEC law against shorting penny stocks!***
*Suddenly it's becoming all to real to me. Many of the prime-time type of brokers, such as your E-trade, Ameritrade, Scottrade, etc.-trade won't allow shorting of penny stocks because they wish to take all of those shorts themselves. Suddenly it's becoming clear to me that if any broker you use doesn't allow you to short these stocks it is because they take it upon themselves to actually short against their clients holdings. And best or perhaps worst yet is it's perfectly legal! This is absolutely astonishing, I commend Interactive Brokers for having the gusto and the courage to actually come forth with a shortable stocks list which includes several penny stocks. Suddenly it all becomes transparent that a great deal many of the other brokers won't allow you to short stocks because that would take their priviledge away of shorting the very stocks in their clients accounts against them, how thought-provoking!
So what exactly does this mean? To me it means that several past brokers have literally and flat-out lied to me about it being illegal to short penny stocks. Why do they keep this vail of secrecy amongst themselves? Quite simply, the more people that find out, the more people that will not want to play the penny stocks game, especially from the long side, and the other answer is because the longs playing the penny stocks game give the shorts the power to short the damn stock. Because without anyone buying, how could anyone ever sell? A priviledge that was once for the well-off and priviledged and only known to the brokers and their friends and colleagues is now for the world to see.
This is absloutely unbelievable, I never realized the day when I'd see a stock priced at .0001 on a publicly-allowed and perfectly legal short sale security list! But yes, it's true. If you want an example, go to the link I provided and look up PCLO, which is traded on the pink sheets, is a stock that has gone through numerous reverse splits, and yet finds itself trading today at .0001.
Another thing, is who to believe on the message boards. A lot of people also have been talking recently about who will allow you to short penny stocks. Well now with it being on a public list, we have found the answer to that question. I was even one of those doubters. But now I've come into reality and I now realize the truth behind the madness. It's true. You can short penny stocks, and you don't need a lot of money to do it either! Absolutely stunning revelations! Even stocks that trade at .0001, holy-moly!
Again I go back to why the secret is kept from "We, the People!" and about not being able to trust other "traders" who post on these boards and other boards. The answer is simple. People make a killing shorting penny stocks, because quite frankly in any given year, I'd wager that at least
95% of the stocks which trade on the OTC BB & Pink Sheets go down! Can you imagine the odds you have of making money in that kind of market? I mean seriously, if you're someone who makes a living shorting penny stocks, do you want to go on Oprah and tell the world? Heck no!!! Why? Because your ratio of 95%/5% might suddenly drop, and if you're a short, that's not something you want to think about. The money comes easy, the money comes often.
Simply scour the boards looking for the day's hot penny stock, and go short on it. With a reward to risk ratio of potentially or roughly 95%/5%, you keep the secret to yourself. And you win 95% of the time! Short the stocks when the boards are raving and ranting about them, and then you take all the money from the people who are amatuer-gamblers by covering when they panic-sell their penny stock shares cause they're in the hole 20% from where they bought, even 30 or 50% and sometimes even more!
So again, "the secret" is kept from the masses because the masses are the ones unaware, someone like myself. Granted I knew the stocks were shortable, I just figured I'd had to be an insider or someone with a silver spoon in my mouth. But that is clearly not the case. What has suddenly dawned on me tonight, is the real truth of the matter is the short-sellers of penny stocks are unpopular folks, thus they will not often make themselves public, they will not often admit they are short a stock trading at 2 cents, and they will not refer you where you can go to short the same stock you are shorting!
You see, it goes back to the 95%/5% scale. They currently more or less have a 95% reward and 5% risk scale. These are magnificent odds of making money in the penny stock market. So anyone including myself who in the past has found it impossible to see the transparancy of being able to short penny stocks in the stock market has simply been hiding the truth of the matter and is simply helping short-sellers out by continuing the myth that penny stocks aren't shortable and thus continuing the maintainment of the 95/5 scale that seems to be the main motivation of maintaining 'the secret' amongst the short-seller crowd!
The moral of the story, many brokers, a great many brokers, in fact the revelation of 95/5 actually fits very well in here. As 95% of brokers, perhaps even more will tell you that you're not allowed to short penny stocks or that it's illegal, etc. The brokers in turn are keeping "the secret" to themselves. Deep down, they are all liars. And they all work for "the man." The man that has often been referred to as holding us down. Anyone who now preaches this deception can be called out, and I've verified these stocks can in fact be sold short, and I've spoken directly to Stan at Interactive Brokers and had all my questions answered politely and fully.
Now I'm not necesarily condoning everyone go and get an Interactive Brokers' account. What I am doing is congratulating such a large and in charge brokerage firm for making their list public. It seems they have leveled the playing field and are working against "the man" and perhaps working for "the people." Now what I hope will happen is that other brokerages will follow suit, because the true blue ratio needs to be 50/50 in the penny stock market.
It needs to be 50/50 because this is what America was built on. Our founding fathers saw this as a land of freedom & opportunity. They saw hope, they saw promise, they had vision. Now with the ratio at 95/5 for a publicly-traded company, the problem only gets compounded when these small companies which have legitimate dreams have to sell shares to raise capital. Sometimes they are selling only 10% of the shares while the other 90% of shares are being sold short, and then the problem is perhaps compounded even more as people's stop-losses are hit. It becomes nearly an epidemic in some cases!
I'm sure if a company came out with the cure for cancer, that this 95% crowd would short against it. And well it could be with great rationale, maybe they didn't believe the press release? I know I might have trouble reading it. Would I short against the company though? Not if it was the last stock on earth trading! Because what if the company really does have a cure for cancer? If they do, then they're going to need to raise money by selling shares to finance their research into phases of trials on actual patients.
It's like you can teach a man to fish, but you better have a license now-a-days. I mean how absurd is that, would our founding fathers want us to fish our lakes as free people, or do you think they'd want everyone to have fishing licenses? It's exactly why they wrote the U.S. Constitution.
See the problem of short-selling isn't that Interactive Brokers is allowing it on penny/developing companies' stocks. It's that other brokers are lieing to the people that it's not legal or not allowed. It's that if a company came out with a cure for cancer, they wouldn't have a level playing field because the 95%(+) crowd would short the stock, the company would have to issue more and more shares for the funding, and thus people would have their stop-losses taken out and this would create one big death spiral. And the only thing needing the cure from cancer would be the companies' stock itself.
This is why I'm a bit fired up. It's the 95%(+) crowd through their greed, deception, and just flat out lieing who're terrorizing publicly-traded companies. It's the exact reason I wouldn't become a publicly-traded company. There are no pro's whatsoever, if "the man" wants your company to fail, he's going to simply send out the 95%(+) group of bandits out to get your company. And in some cases the CEO looks like the bad guy, but in reality, it's most often the 95% crowd who battered the poor guys' company to near death!
Is there a moral to this story? Their sure is. It is what it is. Knowledge is power, use it wisely. There are two sides to each coin, and one says "In God We Trust." The other is well... a bit more deceptive. Which side of the coin do you work for?
As long as "In God We Trust" is embedded on one side of the coin, then there is no way "We, the people can fail"
May God Bless you all, and may more transparency and honesty go over the 95% crowd who continues to deceive "We, the People"
I'll leave with some artwork, it resembles in English what we know as "We are opposed to cunning & deceit."
May the good God smile upon the people, may the good God shine light upon all, may all past sins be forgotten, and may the peaceful Garden of Eden return to our planet, where the only existence of emotion is love & harmony as we each embody a soul that is apart of the greater soul & vibration of our greater existence.