The Great Penny Stock Chaser Experiment
While listening to my satellite XM/Sirius radio (Howard Stern — shhh!) I always hear advertisements for a website called Penny Stock Chaser. They claim to pick penny stocks that increase in value anywhere from 50% to 2000%. Having bought a few stocks in the past, I do know that the risks associated with penny stocks are pretty high and you could lose a lot of money – if you invested a lot of money.
Since I am always looking for ways to make money online and create extra income, I signed up on Penny Stock Chaser’s website and I have been receiving their stock picks for a few weeks now. Some of their picks literally go up 40% in one day, while a few days later that very same pick might drop 50%. I have a theory about Penny Stock Chaser which I am about to test.
My theory is that when a new stock is hyped up on Penny Stock Chaser, it immediately skyrockets due to all of it’s members investing in that stock. Then, once it has turned a profit – everyone who is smart, cashes out at a higher stock value and the stock then crashes. Some people call this a “pump and dump” scheme. I plan to try and use this scheme to try and profit from Penny Stock Chaser. This is what I will call “The Great Penny Stock Chaser Experiment“.
I am going to start with a measly $150. (I put $158 in my Scottrade account – the $8 will cover the first stock purchase. My rules are as follows: 1. I can only purchase stocks that Penny Stock Chaser picks. 2. I cannot hold one stock for more than seven days. I am going to try and focus on new stocks that Penny Stock Chaser begins to hype up. I have been getting their emails for a while now, so I won’t try and pursue stocks picks they have been sending out for a while now. One thing to note; I can sell a stock and buy a new one, but then I have to wait three days for the funds to clear- Scottrade has a three day waiting period in between purchasing any stock under $4. So, let the experiment begin!
I will be buying my first penny stock within the next few days. Once I have purchased my stock, I will keep you updated with screenshots of my Scottrade account. I will be providing screen shots of my account throughout this entire experiment – whether my account grows or dwindles, you will see the results. At this point I am not a proponent of Penny Stock Chaser, nor am I denouncing them – I will have a stronger opinion after this experiment!
You can visit Penny Stock Chaser’s website here: Penny Stock Chaser
Let us know what you think about this review of Penny Stock Chaser, if you have compliments, complaints, comments or you think it is a scam – let us know by commenting below…
Best regards,
Michael-John Wolfe
TAGS: Residual Income, Make Money Online, Royalties
THE GREAT PENNY STOCK CHASER EXPERIMENT – RESULTS
Date: February 3, 2010 – BUY 37,500 shares of GDHI.PK @ .004 per share =$150.00
Date: February 10, 2010 – SOLD 37,500 shares of GDHI.PK @ .0035 per share = $123.58
Date: February 10, 2010 – BUY 124 shares of MYSL.PK @ .98 per share = $129.13
Date: February 17, 2010 – SOLD 123 shares of MYSL.PK @ .82 per share = $94.16
Date: February 17, 2010 – BUY 2800 shares of WDRP.PK @ .0227 per share = $70.88
UPDATE: So far EVERY stock that Penny Stock Chaser has reccommended to me via email has gone down as soon as I bought it. In fact, my initial investment of $150 is now down to $70.88. I am going to stop trading and hold this final stock as long as possible. So far I am not impressed with my results!
43 Comments to “The Great Penny Stock Chaser Experiment”
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I am a huge fan of Howard Stern and am very skeptical of penny stock chaser. I have never invested in stock and can’t wait to see your results.
Yes – Howard is the man, I like to hear his commentary when Robin reads the news. Growing up in Connecticut, I remember hearing him on the radio in the old days. I am itching to sell out of this first stock – GDHI, it seems that PSC has stopped “pumping” the stock up, so I may take a small loss and sell out of it. They are pumping a new stock today that I will look into for tomorrow. I too, am skeptical!
MJ
Wow, good thing you only decided to invest a little bit in PSC. Like everything else in life, if it sounds too good to be true, it probably is. Howard is still the man though.
Yeah – I’m glad I did not go in with $500 or anything. I literally bought each stock the day after I got the email from PSC “hyping” it up. So my plan to buy and sell when it went up did not even work – they all went straight down! Howard is just doing his job – reading cpy for an paying advertiser.
MJ
I found this experiment when looking for reviews of PSC as I was skeptical also, but I’m even more skeptical of you. I believe, due to the advertising and other reviews that PSC is doing a pump & dump scheme.
You left out an extremely important factor that could significantly affect the results of your experiment — what time of day did these stock alerts get sent out? Was it before market opens? This is extremely important because you say that you purchased these stocks the day AFTER PSC sent you an email about them. If you check out the prices for each of the stocks in your experiment on the day BEFORE you bought them (meaning the day PSC sent the alerts out), the stocks go UP.
So if the stock alerts are sent out early in the day, then you’re retarded for waiting until after the pumping is done to buy, no wonder they go down… that’s the dump part. To win at pump & dump you need to buy before or during the pumping, not wait until it’s done.
GDHI 2/2 Open: 0.0032 High: 0.0040 (+25.0%) Close: 0.0040 (+25.0%)
MYSL 2/9 Open: 1.01 High: 1.06 (+4.95%) Close: 1.05 (+3.96%)
WDRP 2/16 Open: 0.0230 High: 0.0270 (+17.4%) Close: 0.0263 (+14.3%)
So basically what I’m saying is that this is a bullshit experiment. Sure your numbers are accurate, but your experiment leaves out important details (when the stock alerts were sent) and why you decided to wait instead of buying immediately when you received them. If this is a pump & dump scheme, then you MUST purchase the moment they start pumping, not a day after.
Anyway your experiment convinced me to sign up for PSC, but unlike you I’m going to watch the stocks and keep track of the prices at the time the alerts get sent out and where they go after that before I actually put money on it.
Well I am no pro at trading stocks – but I would usually get an email from PSC regarding a stock and buy the next morning. I did not always buy at the opening bell, but I bought within a reasonable amount of time. Can you post some of your trades in the comments below? Let us know when you actually purchase these stocks and then post your gains/losses when you sell? I would love to see how someone who knows how to work a “pump and dump” scheme actually does using PSC’s alerts. You don’t work for PSC do you?
Oh and by the way, I recieved TWO emails from PSC hyping WDRP.PK since the closing bell yesterday. This stock is still down this morning. So where’s the “pump”?? If PSC sends out two emails about one stock in one day – you would expect some sort of increase in the stock the following morning.
MJ
I signed up for PSC a few mins after I posted my earlier comment, so the only alert I’ve received so far is about a stock you already mentioned. Like you, I’m going to focus on alerts for stocks that are just being mentioned by them, not ones that keep getting mentioned by them for weeks. I do NOT intend to invest money based on their alerts anytime soon (I don’t trust them, which is why I was looking for reviews and found this site), but instead I’ll look up the price of their stock picks at the time the alerts are sent and see what happens over the next couple days-weeks to those stocks.
Stock prices fluctuate throughout the day, so the actual time that the alerts are sent out is important (and you neglected to tell us the times). All I did to get the numbers from my earlier post was take the little info you gave (that PSC gave out the alerts the day before you bought), and looked at the opening, closing, and highs of the day for those stocks. The numbers I listed are only a good measure of PSC’s predictions is if PSC gave the alerts before the opening bell (which is what a lot of stock alerting services do), but you didn’t say when they were sent (and I wasn’t signed up with them until today, so I can’t check for myself). For more accurate numbers, check the prices at the times the alerts were sent.
I don’t know for a fact that PSC is a pump & dump. They may be recommending companies they think are good buys, but since they’re recommending penny stocks (and the service is free), the nature of their business is going to cause stocks they recommend to have ‘unnatural’ jumps in price (similar to pump & dump systems). The number of shares of penny stocks traded in a day is typically significantly less than ‘normal’ stocks, so it takes significantly fewer buys to cause the price to rise. Even if they are just a pump & dump system, that doesn’t mean they can’t be used for profit.
Also, buying and holding a stock for a specific period of time is a sure way to lose money. You should really consider using limit orders, or more specifically trailing stops, but I that’s beyond the scope of this article (PSC, not a stock primer).
You need to start a blog about stocks or maybe about penny stocks! You obviously like to write and you are good at getting your point accross. I am going to hold this final stock WDRP, since I just read that they turned over 130 million shares to the treasury, lowering the overall amount of stock available. I have already cut my money in half, so I don’t have much to lose buy holding it. Plus, if I keep buying and selling more stocks the transaction fee alone will eliminate the rest of my money!
MJ
What a disappointment! I followed 13 picks on a simulated portfolio as if I had invested $500 in each of the 13. Invest $6,500 and lost $2,500 in first 60 days,… so their “tips” are worthless!
I bought 2 of these “dogs” and each are down about 60%,… what a fool I was!
Andy
Sorry you had to endure that Andy! It looks like the only ones who make money with a pump and dump scheme are the people actually doing the “pumping and dumping” — I guess we both got “pumped and dumped” — lol. Next time you want to spend money on PSC, just mail me a check instead! Luckily your sister Hilary can lend you some extra cash.
MJ
Your blog tips is really good. Penny stocks are most closely associated with pump and dump schemes, where stocks are brought in bulk by stock speculators and a massive campaign to promote the stock starts, jacking up the price of the stock.
Thanks Allen! I wish I could have actually made some money! My stock WDRP is in the dumps! I guess you could call it “WDRP in Cincinatti” — lol
MJ
What is really key here is, is anyone asking the question how PennyStockChaser makes their money? They have their website, brag about 40 staff of analysts, how are they paying their bills. Are they buying up penny stocks, pumping up with their alerts and then dumping them to the public?
Can anyone answer the question?
Who knows? Maybe they do exactly that – but the stock first, then pump it, let it rise and dump it immediately!
MJ
I think PSC is making $ the following ways (in order of decreasing profits):
* Pump & Dump – The buy the stocks, pump them, dump them when they’ve gained. In some of their alerts they say they’ve bought stock before the alert and how much. (btw I’m still collecting stock symbols & announcement times as I mentioned in an earlier comment)
* Promotional fees – They charge companies, and presumably individuals, to promote specific stocks. So if you wanted to do your own pump & dump with a stock, you’d buy shares in a stock, then pay PSC to pump it. It basically says this on their “contact us” page.
* Comissions – A quick look through domain registrations (bear in mind, I may have made a mistake) leads me to believe that PSC is owned by the same person/people as the only brokerage company they recommend (even if they don’t, they’re surely getting a kickback for the advertising or referals they make).
* Ads – They do sell advertising space on their site, it’s not a lot, but they do have ads.
OMG! Trader 101… Do you love to write! Holy shit! Start your own blog… Anyway, Mr. Wolfe… This was an excellent post. I could not agree with you more. For the past week or two I have been taking all of their alerts and creating a watchlist acting as if I already purchased 1,000 of each one they hype… Wow! The result were astounding! I would have lost the majority of my money and this is asuming that I bought today and held on for 2 days. Looking at my watch list now I am down 70% of my initial so called investment…
I think the verdict on Penny Stock Chaser is becoming more apparent, Grisel. I am guessing that if the stocks that they recommend do spike after their alerts — PSC sells them long before their members get a piece of the pie. I’m done with PSC, home skillets. Thanks for letting us know about your little experiment!
MJ
forget the newsletter, its about the twitter now, and you gotta be quick, because obviously they buy it b4 they tweet it, still, psc, def a pump n dump scheme. you literally need to be standing by a computer waiting for the tweet, then buy buy buy. sell the next day when it goes up 50% still down from following the stupid newsletter though, see if i can bounce back on twitter
What site or company is best to buy, sell, trade penny stocks??? I am having trouble finding one that allows me to trade freely.
I don’t know who is the best company. I used Scottrade and I had to wait 4 days for all funds to clear to buy penny stocks – it kinda sucked. Maybe one of my readers can point you in the right direction. Good luck!
MJ
Two very good discount stock brokers are sogotrade – $3/trade & tradeking – $4.95/trade.
Thanks for this info Dougster! Hopefully this will help some of my readers who are looking to trade penny stocks.
MJ
Yes, I am on Tradeking now. However, the $4.95 does not apply to with penny stocks. For example, if I wanted to purchase a stock for $.01 and wanted to invest $1,000; I would have to pay an extra $1,000 to buy and $1,000 when I sell. I even called the people at Tradeking and they informed me that they have this kind of policy for every stock under $1 becuase of the extra work or risk on their end. Is there any way to get around this, it’s hard to make money under these rules and regulations. Any advice is welcome. Thanks!
I wish I had the answer for you – hopefully one of my readers can give us some insight on other good penny stock exchanges. Good luck!
MJ
Ok…so I’ve gotten their little trick!!!
Here’s the scam…..Penny Stock Chaser will send out an announcement (via email, tweet, etc) that they have a “hot new stock pick” every Friday at 3pm. When 3pm rolls around, they name the stock. Thing is, and this has happened consistantly throughout the past few weeks…if you check that day’s charts on that particular stock….it’s already made a run the entire day! So what does this say? It means those guys at penny stock chaser alert THEIR family and friends….and purchase a lot of stock in that company themselves, early Friday morning…..then at 3pm…they announce it….people start buying…and they (psc)starts selling it off!
Don’t believe me? Look at Friday’s (April 30, 2010) run on VIVK. The stock openend that day at .085 and was at .185 when they “announced” it. Shortly afterwards, the stock started declining in price!!! And thats the norm for these scammers!!
Now I just received a tweet from them (after I wrote them a nasty letter Friday after the closing bell) that somehow their “3pm announcements have had a leak”!! WTF is THIS all about?!!!!
This is a SCAM people….WHAT CAN BE DONE ABOUT IT???!!!
Signed,
Ticked off!!!
Wow – this is pretty interesting! I guess I need to get “all in the family” with PSC so I can get their alerts first, haha! It looks like I would stay away from PSC!
MJ
I have a lot of their alert emails, but haven’t analyzed their times vs price movements yet. Anyway, if you’re so sure their stock picks are going to drop after they send out their Friday 3P alert, why do anything except benefit from it? Short their picks!
BTW PSC sells emails to other stock related companies (or they also run them). I created an email address SOLELY for PSC and I’ve started to receive emails (related to stocks) on that account from other companies. I’ve not received ANY emails (normal spam) on this account, probably because the name was so long and not posted anywhere/used for anything aside for PSC.
I have an e-trade account and have been using pennystockchaser for roughly the last 3 months…like a sucker.
I have no experience in trading but liked the idea of fast returns on sub-penny stocks. I can show you the embarrassing returns I’ve gotten.
I have about 10 stocks right now. I have invested around 3800. My account value is 1900. Yeah, PSC always says do your due diligence on their picks….Really, I should have done my due diligence on them. It’s like Anthoney said. I got the tweet on VIVK 2 mins after it came out and immediately bought. 200 bucks….and immediately lost. The pump had already occured. The only stock I’ve bought recommended by PSC that I think is worth holding is WDRP. I think they have a great product and the market for the product will be growing, with few competitors right now.
Other than that….I’m done with PSC picks….
I used to waste a lot of money when I first started using PSC because I did not know how to trade their picks but I can honestly say I was able to make about
I STARTED WITH $500.00
0N Dec 21. I bought HSCO @ $1.2 SOLD $1.95 my money grew to $795.61
Jan 10,2010 I bought AGCZ @ $.33 SOLD at $.38 my money grew to $905.03
Jan 14,10 I bought GDHI @.0023 SOLD at .004 my money went up to $ 1555.68
Jan 18,2010 I bought VTPI at $.014 Sold at $.0125 for a loss my money went down to $1370.07
Jan 31 bought DGRI @ $.146 Sold at $.193 my money went up to $1798
Feb 08,2010 I bought HYII @ $.0141 Sold at $.0196 my money went up to $2485
You are not suppose to hold the damn stock for more than a day as a matter of fact you must have a game plan before you buy in decide when you want to get out.
set a goal between 20-60 percent once you reach that goal just sell the damn thing it’s not that hard.Anyone who goes to sleep with penny stocks in his/her portfolio is a fool.
as of today my $500.00 initial start up has grown over$14316.37 from december09 to may 2010 in part due to EVPH,FVSTA, AVOE and BLEW which PSC released I can’t complain at all
by the way you can buy the stock once deposited funds are cleared meaning 3 days after the money is transfer from your bank account.
After that you can trade as you pleased just be careful penny stocks are not to be cuddled with it’s a flip it game.
Wow – it’s good to see that someone is making good money with PSC. It seems like you played the game the right way. Do you buy as soon as a new stock is announced? What would you reccommend to my readers who want to emulate your success?
Thanks,
MJ
Hey NSEAL….if I didn’t know any better, I’d swear you were a shill for PSC!!! How can one sell the “damn stock” at a profit, if its ALREADY MADE ITS RUN BEFORE ITS ANNOUNCED??!!! Another note…why the hell would ANYONE hang on to one of their picks if it starts plunging after the buy?! You must be one of those people with insider information! Give me a break!
The only company I’ve made money with is KillerPennyStocks…they have CONSISTENTLY made me money! Because they don’t announce a stock every freaking day…then try to talk it up with innane tweets and ridiculous predictions!!
No, I stand by my original conviction that PSC is a SCAM!!!! But hey….don’t take MY word for it! Sign on to receive their tweets (and you’ll read how absurd they are), then go ahead and buy all the stocks they recommend! And watch the money just pour……OUT of your account!!!
Latest example: Friday May 14th, 2010 @ 3:15pm (their new stock pick time). After a week of tweeting that their new pick was “going to be a monster”…blah blah blah…they finally announced SWRS!! At that time the stock was at .14 per share. Then BAM…like clockwork, the stock started to plunge, go figure!! Now, Monday May 17, 2010 as of 1:21pm the stock is at .0540 and falling like a stone!!!
And as always, the usual surge of PSC’s tweets started rolling in: “Oh, we don’t understand why the plunge”, “PSC is sticking with SWRS”, “Next week is going to be a great week for SWRS”, “Blah blah blah”!!!
The bottom line is that this company needs to be investigated and it’s managers should be tried, convicted and removed from existence!!
PennyStockChaser SUCKS!!!!!
Uh oh — looks like “it’s on” between NSEAL and Anthony! This post has become one of the more exciting ones on my blog. Everyday I am suprised at how many visitors I get that are searching for the term “pennystock chaser review” and “pennystock chase scam” — interesting!
MJ
Hey MJ,
Well, thats because people are starting to realize for themselves that PSC is a scam, despite what people like this NSEAL character claim (hey, SOMEONE from PSC is making money from all of us that are getting scammed, no?)! The results speak for themselves. Again, I always advise folks NOT to take my word for it, but to research it for themselves!
Thanks for the forum brother.
Anthony
I’m not a promoter of PSC. If you really want to make money with their picks, you have to buy the stock as soon as it’s released or an hour or two after the openning bell because stocks almost always drop during that time.
rule #1- immediately after you buy a stock, put it on sale at a 10-25% higher than the purchase price depending on how much the stock has gone up before you got into it.
Rule #2_ stop being greedy do not go for the 100% gain that everyone seems to be looking for. The minute you make a lil profit get the hell out.
Think about it! how much interest does the Bank pay you weekly on a $2000.00 saving account?
The answer would be $0.00- $0.0001 and that’s only if you’re lucky.
Imaging you making just 5 percent gain weekly on a $2000.00 investment that’s $100.0 in pure profit if you’d stop being greedy and settle for the little gains you could almost certainly become a self-made millionaire in as little as 3 years.
Remember you’re trading to make money stop worrying about the gains you’re seeing posted on their site just set your goal at minimal percentage and always have your laptop with you in case you want to make changes as trading goes on.
The truth is I made a lot of mistake when I started trading.I lost almost dime I invested until I start selling my stocks almost as soon as I purchased them usually within 1-3 hours sometimes less depending on what my goal is.
I just made a $26k profit on ooag.pk I only wanted to make $2500.00 in profit but the market moved so fast on monday i was able to more than double my money.
By the way Anthony! You don’t always have to buy every stock picks tehy come up with; Remember PSC gets paid to promote them and they also buy shares of the same stock before they send it to their subscribers so there’s a conflict of interest there.
Therefore, before you buy into the stocks being promoted by PSC just go on Yahoo finance http://finance.yahoo.com/ ,enter the stock symbol and find out if there’s any positive news being released because sometimes it could just be the guys at PSC wanting to make some quick bucks by just throwing any stock out there hoping their subscribers will get in while they’re selling out.
Like I said before a 5 % gain weekly is all you need to get rich in less than 3 years but you must be disciplined and unemotional.
PSC is run by a well known penny stock scammer named Dan Ryan, they get paid in shares and money to pump scams and dump the shares as fast as they can. One of the worst scam promoters in the penny stock world.
The only people who make money on promoted penny stock are professional traders, the sleazy paid promoters and the insiders running the scam. The sheep get sheared and slaughtered. Most promotions are done to purely unload shares and most promoted stocks are outright frauds or at best a poor company in the hands of dirt bag promoters.
-a professional trader
Hi Mr. “Professional Trader” — thanks for the input! I guess I was a “sheep” when it came to spending my money on PSC picks. I am still holding that final stock I bought – WDRP.PK, I guess I have very little to lose by keeping it.
MJ
Great information, thanks, also if anyone still is wondering whether this is is scam, just read the Pennystockchaser.com disclaimer (http://pennystockchaser.com/disclaimer/). After going around in circles for a while talking about “past performance is no indicator of future performance” etc., etc., they pretty much admit to being a “pump and dump” operation. Here is a quote from the last paragraph:
“PennyStockChaser.com services are often paid for using free-trading shares. PennyStockChaser.com may be selling shares of stock at the same time the profile is being disseminated to potential investors; this should be viewed as a definite conflict of interest and as such, the reader should take this into consideration.”
Maybe even more revealing is a list of ticker symbols for companies that have used the PSC promotional service. They even list the compensation received by PSC! In short, whomever is behind this operation must be making millions! My question is, just because you admit to being a fraud in your disclaimer, does this mean you can’t be prosecuted?? In short, “pump and dump” is illegal, but if I admit this is what I’m doing (even if this admission admittedly is in the “fine print”) and you are stupid enough to go along, does that mean I’m not doing anything wrong?? Either way, I would say, that from any ethical perspective these guys should be shut down ASAP.
JC
Here we go again with the “don’t be greedy” remark!! NSEAL, did you ever think that all I wanted to do is make a tiny profit for each stock? Why is it that if a person loses money using a SHAM operation like PennyStockChaser, he’s automatically assumed “greedy”?!
Here’s a perfect example I’d like for YOU to dig your lovely company out of!! Everyone research ACLH!!! PennyStockChaser was talking this company up like there was no tomorrow!! ACLH poised for big gains, we should see higher trading on ACLH, blah blah blah….the usual BS streaming out of the PSC crew!! So what happened?? The SEC steps in and halts ALL TRADING on ACLH because they were lying. If you think the PSC crew didn’t know this then you need to switch your meds!! They pumped this stock up until they got rid of all their stocks and BAM….in steps the SEC to halt the trading!!!
I appreciate the little good advice you’ve dispensed, but give me a break….we’re not all greedy!! And sometimes we lose money because the company pushing these worthless stocks are scammers! PSC SHOULD be investigated at the very least!!!
PSC gets nabbed.
http://www.sec.gov/news/press/2010/2010-114.htm
PSC is going to pay dearly!!! This husband and wife team are nothing but theives!!!
Hahahahahahahahaha!!!! Oh my GOD…..NO WAY!!!! I told you guys!!! I told you!!! I knew these guys were full of shit!!!!
WAY TO GO S.E.C.!!!!!!!
while I did enjoy reading this you guys are/were doing it all wrong.
When dealing with sites such as PSC you HAVE TO SHORT THE STOCK. yea there are always gonna be suckers that will read the letters and the stock will rise for about 3 days.
Then as soon as the stock starts going down SHORT IT. In my expiriences the stock will almost consistantly go down continuosly go down for about a month after it peakea so SHORT THESE STUPID NEWSLETTER PICKS.
BTW its estimated that for every one person that buys a stock that is being pumped, three people short it