This method is by no means for everyone, and he would be the first to admit it. Grittani said, “I’ve been trading every single day for almost three years, and it’s been a slow, day-to-day process”. The life of a penny stock trader like Grittani is spent in front of a computer screen all day every day, buying and selling select stock at the correct time. Penny stocks don’t usually remain in his possession for long, most are gone in minutes and a few will last a few days at most. This in and out method is tailored for penny stocks.
Even the Securities and Exchange Commission have commented on the risks of trading penny stocks, stating, “investors in penny stocks should be prepared for the possibility that they may lose their whole investment.” These stocks are thinly traded and aren’t in the big exchanges like the New York Stock Exchange, making them highly volatile.
Grittani secured his $1 million portfolio by betting against a company who had recently been the focus of a pump & dump plot. The company, Nutranomics, experiences a huge rise in stock prices, which Grittani determined was down to scammers. Their stocks multiplied three times in a month, and he pulled out when he realised they were slightly losing momentum. After he did this, the stock plunged by 60% in just over 20 minutes. His intuition earned him 8,000 in 10 minutes.
Grittani had developed a taste for gambling in college, betting on sporting events and playing poker to earn money. He was somewhat successful- his winnings included a $9,000 winning bet. After continued gambling he lost it all and decided he needed to stop. This is when he decided to start investing.
It wasn’t a fairy tale start for Grittani- “I started by opening an account with $500 to see what I could pick up on my own… But within a few weeks I lost half my account and decided I needed some outside help.” This help came from Tim Sykes, someone he had heard of at his time at college. Sykes had turned his $12,000 Bar Mitzvah gift into millions by day trading penny stocks. Since then he has been teaching people how to do the same online.
Grittani spent months learning Syke’s theories and eventually built up the courage to take the plunge. To start, it was rough. He was $1,300 down and times were hard. Eventually after 6 months, he finally made his first big trade.
This strategy should not be used as a long term financial plan, and Grittani & Sykes would be the first to tell you.
“I think it’s mainly for people who are gamblers… But at casinos you play with low odds. With penny stocks, there are patterns that are very predictable,” said Sykes. Grittani’s biggest profit to date was from Fannie Mae, a government sponsored mortgage company, earning him $215,000 in a single day. He estimates his current net worth is around $650,000 and he intends on being a millionaire in a year or so.