Lessons From Penny Stock Hold and Hopers Written by Timothy Sykes Updated 10/15/2019 Today, let’s talk about penny stock hold and hopers… A few years back, this guy contacted me by email to tell me he’d lost a bunch of money investing in weed stocks. He’d been following the Wolf of Weed Street on Twitter. Then he invested his nest egg, watched it grow fast … and watched it tank even faster. Realization set in. He and the rest of the ‘Wolf Pack’ were headed down a slippery slope. So he went to Florida for a face-to-face with the Wolf. Later, as he tried to dig himself out of the mess, he got in touch with me. I told him every stock he was in was a pump and dump. Sell it all. He wrote about his experience in “Men’s Journal.” “Everything I owned tanked. Hour after hour I sat in front of my computer, watching as prices ratcheted into the toilet.” — Erik Hedegaard, “Buying High: How to Get Rich on Pot Stocks” Later the three of us — me, the article author, and the Wolf — went out to dinner. My treat. Read the article to see what happened. Then bookmark it. Come back to it any time you think the penny stock you’re about to buy is the next big thing. Why? Because while penny stocks can spike big, too many people fall in love with the technology or the idea behind the company. And they go down with the ship. Ride the Hype — But Don’t Buy BS These stocks literally… Never. Work. Out. You have to learn to ride the hype, to buy the hype. But don’t hold and hope. Respect the fact that it’s 99.999% likely to fail. It happens over and over again. Ignorance Is NOT Bliss With Penny Stocks Newbies aren’t bad people, they just don’t know what they’re doing. (My FREE guide to penny stocks is a great resource for new traders.) Promoters, on the other hand, they kinda are bad people. But whether you’re just dumb and ignorant or manipulative and ignorant, you’re gonna lose. Either way, you’re gonna be wrong. The “Men’s Journal” article is one of the best examples of how penny stock pumps work… Stock Trading Twitter Battles I warned all the pot investors that the stocks were following big pump patterns. They came back with things like… “Weed is gonna be legal. So much money is gonna come pouring into this industry.” And… “After it happens, no one is going to know who Tim Sykes is.” So I was battling the Wolf of Weed Street on Twitter. He believed in his companies. Yes, he made a lot of money on the way up. And a lot of his followers made a lot of money. On the way up. But he didn’t get off the ride at the top. He truly believed pot stocks would just keep going up. I kept trying to tell them that it didn’t matter if pot became legal. It didn’t matter if it became a big business. The pattern was exactly the same and newbies were getting crushed. The author of the “Men’s Journal” article believed, too. The ‘Wolf Pack’ believed. They were saying things like, “This is a new industry, Tim Sykes is a dinosaur, he doesn’t understand.” Then when everything crashed exactly like I said it would, the writer saw what was happening. It’s the Same Pattern Every Time What does the big weed stock run of 2014 have to do with today? Everything. The same pattern just keeps coming. Let me show you some more recent examples… ...The crazy thing is the bagholders, pumpers, and believers keep trying to tell me how good their company is. And how wise their CEO is. It follows the same pattern. People are just idiots... Pump or Not, Always Lock in Gains Along the Way ...Experience and Honesty I like being honest. So even if a stock is going higher, I’m gonna say pump it higher. But I’m still not gonna believe in the company. And I’m not gonna be surprised when everything comes crashing down. I’ve seen it too many times. By all means, ride these pumps up on every breakout and big volume push. But never believe the hype...