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How To Trade Penny Stocks For Short-term Profits
Specs: 30 mins, 53 secs | 14.2 MB
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One area of trading I haven't tackled here at TraderInterviews.com is penny stocks. Frankly, because it's an area of trading I didn't think many successful traders were into. But over the last few years, more and more traders are having success - with a few caveats. Michael Goode is one of those traders. He monitors low priced stocks that are being "pumped and dumped" by penny stock promoters, shorts them, and waits for the inevitable fall that comes after early buyers realize the company has minimal revenues, over-hyped plans, and little substance. In this interview I talk with Michael about how he finds penny stocks to short, why he remains cautious when trading them and how the entire "pump and dump" scheme works. Different than other interviews I've done recently, you'll find some valuable tips and tricks (along with a few warnings) for trading penny stocks for profit.

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How To Trade Penny Stocks For Short-term Profits


TraderInterviews.com: Hello everybody and welcome back to TraderInterviews.com. Thanks for joining me for another show this week. Something a little bit different this week. We haven't a done an interview about penny stocks or lower price stocks and how traders trade them in awhile. You may have remembered we talked to Timothy Sykes oh probably a good year and a half ago about it and got a little bit of information about it there. But I wanted to talk to this gentleman today about how he trades as well. His name is Michael Goode and he's got a blog. We're going to talk about that later as well. But I really wanted to get some information from him about how he finds the stocks he's going to trade and how penny stock trading maybe different than other types of trading. So, Michael thanks very much for joining me on the phone today.

Michael Goode: Thanks for having me Tim.

TraderInterviews.com: Well, I should say your last name too so our listeners know, Michael Goode. How long have you been trading penny stocks?

Michael Goode: Yeah. I've been trading penny stocks almost since I really touched the stock, which was back in 2005. But I mean seriously trading penny stocks and making serious money doing it, since about the mid 2007.

TraderInterviews.com: Okay. Are penny stocks or lower price stocks the only stocks that you trade?

Michael Goode: No. I am sort of a generalist or a dilettante in a number of ways, I like doing all sorts of different things. So, I've done everything from - What have I done? General momentum trading, technical trading, sort of fundamental analysis and fundamental based short selling and some more esoteric stuff like pairs trading. But penny stocks is really the most of what I do.

TraderInterviews.com: Okay. So, there was a famous post that you had kind of calling out Tim Sykes a few years ago about the fact that you were...

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