If you have been trading penny stocks for a while you have probably came across one of videos claiming to teach novice investors about technical analysis through charts. If you don’t know who I’m talking about his name is ClayTrader25 and his videos usually look like this:
What you didn’t know
ClayTrader also runs his own chatroom where he shorts almost every stock he does a video on. He defrauds novice investors by posting false hope to keep the sentiment up and then executing a short attack on it leaving the investors who are usually his viewers holding a huge bag. His plan is usually performed in the following steps:
Steps to the Scam
- Find a volatile penny stock with a big move
- Do a video of the chart analysis
- Pay Bashers to spread fear
- Alert the chatroom to short the shit out of it
- Rinse Wash Repeat
Why does this matter?
His videos have become so taboo to investors that seeing one of his videos on your thread is interpreted as the kiss of death. However, it has been discovered that ClayTrader chatroom has a massive short position in ticker symbol $SLZN and his bashers are already all over the board.
Skyline Medical ($SKLN)surged Tuesday, gaining over 100%. Earlier it announced the signing of a letter of intent to form a joint venture with Electronic On-Ramp. Wednesday it peaked at 50% before closing the day green still.
ClayTrader Over Exposed Short Position is evident through his paid bashers or members who may have slipped by following the entire crew:
Proof of Bashing:
Coined as #TradingHacks these techniques can initiate massive short squeezes just from Bulls employing these basic principles:
Remove Your Stop Losses, They actually initiate dumps when a tiny sell off occurs typically from day traders and often put the bears in control
Raise Sell Limit the stocks price 10 fold (+10000%) This is so that Shorts Can’t Borrow your shares to short AND prevents them from covering because if they did it would have to be at the Limit Price