Trading from Home: Long Islander trades penny stocks

Posted: Updated:
WESTBURY -

Tim Lento has a regular routine on mornings he works, like many Long Islanders, but his commute is all of 3 feet -- from his bed to his computer.

Lento trades stocks, specifically penny stocks. They're considered a risky investment, as they’re unknown companies who sell their shares for less than $5.

“Ninety-nine percent of them aren't going anywhere,” says Lento. “Most go bankrupt.”

For that reason, Lento's strategy is picking companies that he believes will fail. He then does what's called short-selling. It involves investing in such a way that you make money when the company's worth plummets. And so far, he's been pretty successful.

“So far this year I'm up $52,000,” says Lento. “I'm up $100,000 since 2012.”

Financial experts say that dabbling in penny stocks is extremely risky and that for everyone who's successful at it, there are dozens, if not hundreds, of others who fail.

Lento admits he's had his share of losses. He remembers going to bed one night thinking he was about to make a huge profit on a company, but just the opposite happened the next morning.

“I lost probably around $20 grand,” says Lento. “My heart almost exploded.”

But at 36, Lento says he's learned from his mistakes and has more successes than failures.

Day trading peaked during the tech boom in the late 90s. The number of traders dropped substantially and now they're starting a comeback. Lento believe the keys to success are doing research, sticking with a strategy and patience.

“I don't know if there's going to be an opportunity tomorrow,” says Lento. “So I just sit and wait. This is my business. It's not like I'm going to Vegas and putting it all on black. I'm not gambling.”

  • SlideshowsSlideshowsMore>>

  • What's Cooking Photos

    What's Cooking Photos

    Chef Rob, of Uncle Giuseppe's, adds a little clarified butter, fresh herbs, some olive oil and, of course, salt and pepper, to season the steak. Add some roasted potatoes and sauteed broccoli rabe and some white wine to complete your perfect summer meal.Chef Rob, of Uncle Giuseppe's, adds a little clarified butter, fresh herbs, some olive oil and, of course, salt and pepper, to season the steak. Add some roasted potatoes and sauteed broccoli rabe and some white wine to complete your perfect summer meal.
    Chef Rob, of Uncle Giuseppe's, adds a little clarified butter, fresh herbs, some olive oil and, of course, salt and pepper, to season the steak. Add some roasted potatoes and sauteed broccoli rabe and some white wine to complete your perfect summer meal.Chef Rob, of Uncle Giuseppe's, adds a little clarified butter, fresh herbs, some olive oil and, of course, salt and pepper, to season the steak. Add some roasted potatoes and sauteed broccoli rabe and some white wine to complete your perfect summer meal.

    Each week, News 12's Lily Stolzberg heads into the kitchen with a different chef to cook up some delicious meals.

    Each week, News 12's Lily Stolzberg heads into the kitchen with a different chef to cook up some delicious meals.

  • Just Married on Long Island

    Just Married on Long Island

    News 12 Long Island wants to announce your wedding. Share your pictures and videos with News 12 Long Island viewers!

    News 12 Long Island wants to announce your wedding. Share your pictures and videos with News 12 Long Island viewers!

  • Trump and Putin hold summit in Helsinki

    Trump and Putin hold summit in Helsinki

    (Photo by Chris McGrath/Getty Images)(Photo by Chris McGrath/Getty Images)

    Sights and scenes at President Donald Trump's summit with Russian President Vladimir V. Putin in Helsinki, Finland, on Monday, July 16, 2018. Images via Getty.

    Sights and scenes at President Donald Trump's summit with Russian President Vladimir V. Putin in Helsinki, Finland, on Monday, July 16, 2018. Images via Getty.

sorry to interrupt
your first 20 are free
Access to News 12 is free for Optimum, Comcast®, Spectrum Networks® and Service ElectricSM customers.
Please enjoy 20 complimentary views of articles, photos, and videos during the next 30 days.
you have reached your 20 view limit
Access to News 12 is free for Optimum, Comcast®, Spectrum Networks® and Service ElectricSM customers.
Please login or create an account to continue enjoying News12.
Our sign-up page is undergoing maintenance and is not currently available. However, you will be given direct access to news12.com while we complete our upgrade.
When we are back up and running you will be prompted at that time to complete your sign in. Until then, enjoy the local news, weather, traffic and more that's "as local as local news gets."