The Black Art of Making Money in Penny Stocks

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Microcap & Penny Stocks
The Black Art of Making Money in Penny Stocks

An SI Board Since February 1999

Posts	SubjectMarks	Bans
131	49	0

Emcee: Elminster	Type: Unmoderated

Introduction Compact

Interesting reading off the internet -- Elminster

The Black Art of Making Money in Penny Stocks
Welcome to the "Black Art of Making Money in Penny Stocks" website.
I'm a long time stock trader and investor and I will provide a
ficticious rendition of how the mind works of a penny stock trader in
the form of a diary.

The information is this document is provided for entertainment
purposes only. Don't be alarmed if the information contained in my
diary resembles real life people, scenarios, places, or events. It's
purely coincidental.

Jonny Wadchuter's Diary

Introduction:
Dear Diary, this is my first entry into my diary and I have decided to join the ranks of "Penny Stock Hypster Extraordinaire".
I have chosen the screen name "Jonny Wadchuter" and I'll use this name
when I log into chat rooms and internet message boards. Funny name
isn't it ? <g>

A penny stock hypster ? How low can I go ? I feel like a sub-human
specie ! Oh well, I know I'm being a bad boy but I need to scam money
out of people. Who cares, if they're stupid to sink their money into
"speculative stocks", that's their problem. <g>

I have an interesting plan, a very organized one indeed. I have a
small following of friends that are interested in making money too and
I have convinced them to join my clan. Since I'm the brains behind
this, I will make all the recommendations and they will be performing
most of the research. This is too cool as I can make money off them
without them knowing my true intentions. What a loser I have become,
making money off my friends too.

I need a name for my clan, what shall I call it ? Hmmm.... I know,
"Clan Rippenuoff". Seems fitting since all I do is rip
you off. What else do I need to do ? Well, here's my list of things;

Clan Rippenuoff's Agenda:
1. I need to organize the people in this clan and assign duties.
Here's the KEY people in my clan. These are the screen names
that they're going to use in chat rooms and internet message boards.
The rest of the clan members are solely there to make a little money
and provide a presence on the chat rooms and internet message boards. We need a nice flood of messages to make it look like something
serious is brewing.

Clan Rippenuoff Main Hypesters:
Jonny Wadchuter - That's me, I am the King Pin, the CEO
of this clan. I make all the calls.

Dave Dikinyeras - My best friend, he will be the main hypster
sitting at my side and the finacial advisor-->Yeah right! <g>

Patricia Perlneklis - She's the "happy" girl, the mediatore when
things get too hot, she comes to the rescue.

Marvin Moenews - The news "guy". Can't make money unless there is
news. <g>

Theadore MeatCleaver - The "Nay-sayer", Scare-Tactics at it's best.

2. I'm going to find a penny stock with some "sizzle" and of course it
must be a stock with a low float so it can easily be manipulated.
I'll start accumulating it behind closed doors. When I am finished,
I will recommend this stock to my close friends and pals (my clan).
I want to be the first one to get a good price, I really don't care if my clan gets the same good deals as I do. I'm a greedy punk !

3. We will spam the chat room and internet message boards with BS and
accumulate a following of minions, these are the fools that
will be taken for a ride. I will offer these people a free newsletter
to the "insider information" so they can feel "special". Sure, they
may make some money, but I stand to reap the big rewards since I got
in first, and they also provide some support if something bad is too
happen, I can get out of the stock first while telling the minions to
hold on.

4. Since it's easier to convince people to sell their stock than to buy it, I have assigned one of my clan members as the "nay-sayer". His
sole purpose is to bring the stock down using "scare-tactics"
(force a major sell off in the stock) after the clan members sell the
stock and/or if I also decide to take a short position in the stock.
After selling the shares, I may issue a recommendation to the minions to start selling their shares and take whatever profits
they have or to minimize their losses, and instruct the nay-sayer to
drive the stock down. Once the stock has dropped, we can
re-accumulate" the stock and repeat the process again. Is this a form
of "cruel and unusual punishment" ? <g>

5. The funny thing about this.... all this is scripted ahead of time.
Lets face the truth, we need alot of people to convince the minions to
buy the stock, but we only need one guy to be the contrarian. While
the stock drops, the clan members will fight with the contrarian to
give the minions the "warm and fuzzy" feeling as the stock declines,
an assurance that everything will be OK.

6. One of the most interesting things about penny stock manipulations
is tricking the market makers to lower the price on the stock by
placing stop loss orders at a very low price and placing limit orders
just ahead of the stop loss order. The purpose is to coax the market
makers to drive the stock down because they see your juicy order to
sell (the stop loss order), and they think they can make a quick buck
by quickly lowering the price to force you to sell your shares at a
lower discounted price, then they quickly raise the price again and
sell those shares for a profit. I'm a sleazy dog, I like to use
level II quotes to accomplish this task. You see, what I do is coax
the market markers to lower the price when they see my big stop loss
order, as the price declines my order to buy more shares gets filled,
then I quickly cancel my stop loss order, subsequently fooling the
market makers. Then the price settles back to where it was. How many
times have you seen a penny stock drop during the trading day on very
little or no volume ? Just remember me when you see this. <g>

-- Jonny Wadchuter

Go to reply# or date (mm/dd/yy):

Reply	Message Preview	From	Recs	Posted
131	I'm reading the chapters daily on IBC Radio. I will write an end to the sto	Wayne Rumball	-	4/25/2003
130	Speakin of the devil... Message 18871726 Are we in a time warp here ... 1999 r	Harry Chmelynski	-	4/24/2003
129	Great thread. Perhaps the "final chapter" will soon be written? rag	Harry Chmelynski	-	4/24/2003
128	Well I was going to attempt to explain a little bit about where he posted his sp	Wayne Rumball	-	10/10/2002
127	Ain't irony delicious sometimes?	SofaSpud	-	10/9/2002
126	You are just the last poster. Don't know you, care or read your posts, just	Evan	-	10/9/2002
125	This thread has been burried in the mud for a few years. I'm just wondering	Wayne Rumball	-	10/9/2002
124	BMKS.This is interesting. Last quarter they earned $101,357, but the market cap	Evan	-	10/9/2002
123	Elminster, I'm making a feeble attempt at writing a book. Is any of this st	Wayne Rumball	-	10/7/2002
122	Guess we should have bought CRY at $1.63 thrusday Wayne,closed at $2.00, and clo	gdog	-	8/16/2002
121	Spread the word Sofa, I've been saying that for 3 years	Wayne Rumball	-	8/16/2002
120	Good on ya. This thread should be required reading for everyone who's ever	SofaSpud	-	8/15/2002
119	Hey all, new to most here, only posting to keep the thread alive,(and well Wayne	gdog	-	8/14/2002
118	To all noobs who are playing penny stocks; Read the original post, it's fun	Elminster	-	1/4/2002
117	<i>It's called the Canadian Dealer Network (CDN) and . . . it's no	Eric Fader	-	8/7/2000
116	Risk and Penny Stocks vancouverprovince.com Risk and penny stocks The Province	CIMA	-	8/7/2000
115	Here's a link I think everyone can identify with stopmmmanipulation.com sp	Sprintcar	-	7/10/2000
114	life line	Wayne Rumball	-	7/9/2000
113	Thanks Chris. Ive never heard it explained that way but it makes sense. Reid	Vendit™	-	6/18/2000
112	Hi Vendit, my broker once told me that they consider a "penny stock"	ChrisJP	-	6/18/2000
111	Yes I am going to attempt to spend more time here. Funny how word gets aroun	Wayne Rumball	-	6/18/2000
110	When I first started "trading" it was in biotech stocks which were pr	Vendit™	-	6/18/2000
109	Very good question. For most I think it is anything under a buck, for some it	Wayne Rumball	-	6/18/2000
108	What does the term "penny stock" mean as far as price range?	Vendit™	-	6/17/2000
107	Play the game. Found on another board... Weekly Thoughts: Learn How to P	Sprintcar	-	2/17/2000

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