I was browsing the NAMG iHub message board, rather surprised there are no posts today after seeing the stock breakout 13% in a single day. I was long NAMG from Tuesday of this week at a price of $1.01. I sold half of my position yesterday at $1.08 and the last half today at the open, also $1.08. Why did I sell right at the open today? Because I could not watch my level 2 and charts today, and therefore instead of exposing myself to blind risk, I decided to play it safe and just close the position for a small profit. Was I disappointed that I didn’t hold all the way to $1.21 (today’s closing price); yeah sure I am. But it’s no big deal; there’s always another trade to be had.
Here is my post on the iHub message board the day that NAMG started to test the $1.05 level. (Thursday, 10/24/13 03:00:36 PM)
CHART & LEVEL 2 SCREENSHOT! MAILERS HITTING THE PUBLIC, SOUNDS LIKE MORE UPSIDE & PROMOTION COMING.
Boy did I call this one right! I’ve been telling several people in the TIMAlerts chat room that it was time to start covering and/or boxing their short positions on NAMG.
After seeing no real activity on the iHub NAMG message board today, I checked the Yahoo Finance NAMG message board. There is some activity here. I see one guy who asks this question which I will answer for him here.
I believe this is a pump & dump stock promotion, as many here do. Does anyone know a broker that will allow shorting (short sale) of this stock and what would be the minimum investment and margin amount required? Potential returns are massive.
Question #1 Does anyone know a broker that will allow shorting (short sale) of this stock?
Answer #1 Interactive Brokers and SureTrader will allow one to sell short NAMG and plenty other PINK/OTCBB stocks.
– Interactive Brokers requires a minimum amount of $10,000 USD to open a margin account.
– SureTrader only requires $500 USD to open an account!
(If you want referrals to either broker, send me an email request: dazetrader at gmail dot com)
Question #2 What would be the minimum investment required?
Answer #2 The minimum investment would be 1 share of stock, which is literally peanuts, you can invest as little or as much as you want!
Question #3 What would be the margin amount required?
Answer #3 Both of the above mentioned brokers adhere to the $2.50 rule. Which means if a stock trades below $2.50 per share, you are required to put up $250 margin for every 100 shares that you want to sell short. For example, say you have a XYZ stock trading at $1.00 and you want to sell short 1000 shares. The amount of cash to short the stock would be $1.00 x 1000 = $1,000, but the margin requirement is actually $2.50 x 1000 = $2,500. So to hold this XYZ stock short, you will be required to maintain at least $2,500 in your trading account.
I have been subscribing to TIMAlerts subscription service for just over 1 year now. The best part about this service is the live chat. You can be sure to hear about the very latest and up & coming pump n’ dumps that are coming to the table and are currently in-play. You will also greatly reduce your learning curve in the OTCBB/PINK market place.
If you are interested in subscribing, click on this link! Or send me an email and I can get you connected as well. dazetrader at gmail dot com