How to make almost $30,000 in under 30 minutes of market time

Lots of people want to know the details on this trade I had on Telupay (TLPY):

The short answer is quite simple: TLPY was announced as the new Stocktips.com stock promotion Friday at 3:43pm. I was one of the very first to receive the promotional emails and Stocktips is currently the most effective stock promoter around (I would never buy most stock promotions — they are only good for shorting) so it was all but certain that the stock would spike, at least for the first 15 minutes or so. (If you sign up for Stocktips or any other promoter, do not ever pay them for anything — just get on their free email list. And never believe what they write — they are scheming scoundrels and pumped stocks inevitably dump big.)

There was a large element of luck to the trade in that sometimes I may be early to receive the emails and other times I may be late — any stock promoter with a big email list will have to use an email service or program to manage their email list and send the emails (in StockTips case it is Aweber). By necessity with a large email list the emails can’t be sent simultaneously so it can take a few minutes to send all of them.

So, knowing that lots of people would be trying to buy TLPY over the next 17 minutes it was an easy decision to buy and buy a lot of shares. Frankly, it was not my intention to take as large a position as I did, but with OTC stocks it is hard to get orders filled so in a situation like this where I expect the stock to quickly spike I put in as many orders as I can and I route those orders to different market makers to increase my chances of getting filled. I also alerted in TimAlerts chat that StockTips had just pumped TLPY:


MichaelGoode

TLPY stocktips pump

Posted Mar 06, 3:43 PM

In this case almost all my orders filled and I ended up long 355,000 shares at about $0.16. I sold 85,500 prior to the close (at an average price of $0.216) and held the rest over the weekend, selling them into the predictable gap up on Monday at an average price of $0.252. (I traded around this initial position a lot, which is why my position size on the Profit.ly trade is so large; my position was never larger than 355,000 shares though.) The initial spike when an effective stock promoter promotes a new stock is by far the most predictable part of the promotion which is why I sold into the gap up — sometimes a stock will drop big after I sell like TLPY did but sometimes it will keep going up. But my goal is to make the easy, low-risk money.

While luck plays a part in trading, and I was certainly lucky to get the email early and get good fills, it is because I know Stocktips pumps well that I was able to send lots of buy orders without hesitation. It is because I am experienced at trading OTC stocks, had hot keys set up to send my orders quickly, and knew where to route my orders that my orders were filled.

While pump and dumps overall are less common and less successful now than they were a couple years ago there are still plenty of opportunities to make money trading them (especially by shorting). If you do trade TLPY or any other pump, just be aware of the risk of SEC trading suspensions (why I never hold a long position overnight after the first day of the pump) and remind yourself that these companies are worthless and will eventually drop big. Here, for example, is a chart of the prior Stocktips pump, ECRY:

ecry

 

Disclaimer: I have no net position in TLPY although I will likely trade it (short and long) after this is published. I have no relationship with any parties mentioned above. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.

10 thoughts on “How to make almost $30,000 in under 30 minutes of market time”

    1. Well if you click on my Profit.ly links and buy anything with them then I get a cut. That is the only thing I’m promoting. My profit on TLPY was pretty much a best-case scenario and certainly most pumps go down (but then I can profit from shorting them).

  1. I don’t deny that you made this trade.

    However you motive to announce it publicly seems to be completely missing.

    If this opportunity for profiting is so good why should one share it with others at his own expense?

    Many dream to make this kind of trade but only the chosen few miraculously receive the e-mail before others and actually profit.

    This situation obviously raises a red flag.

    1. It isn’t like I’m the only one who knows about this trading opportunity — there are at least a few thousand others out there. So it isn’t like I’m giving up some big advantage I have. And this is the kind of post that will get linked to many times, which helps give my blog visibility (and means I’m more likely to make money from affiliate links and ads).

    2. Im confused – is it not part of human nature to be quite satisfied in the accomplisment; yes these dont happen every day – but thats the point – they dont need to.

      I have a different definition for luck though … L abouring U nder C orrect K nowledge … the harder you work at acquiring the knowledge the luckier you get!
      Nice going Michael – really enjoying the seminars.

  2. Hi Mike,
    Congratulations on your trade, that’s called “nailing it”
    However, i’ve been trying to follow all the room strategies, i’m really finding hard time to succeed, as on tim sykes dvds, when the support cracks, u short, when the resistance breaks, u long

    It turns out the opposite all the time,

    Is there something i’m missing in here ???

    1. You need to pay attention to intraday price action too — buy as the stock is just starting to move up off of support rather than right as it is breaking resistance (as it is usually spiking then).

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