The overall market took a tumble yesterday…
DOW fell more than 0.60%…
SPY fell more than 1.0%…
NASDAQ fell more than 1.3%…
And with interest rates in focus, tensions growing in the Middle East…
It can make any trader feel uneasy when it comes to trading…
But regardless of what’s happening with the overall market, there are still plenty of opportunities for you to capitalize on!
I’m talking about stocks soaring 50%, 75%, even over 100% in a single day…
So if you want to know how to take advantage of these opportunities in this volatile market…
Here’s what you need to do.
Early Bird Catches The Worm
Every morning I take a look at the overall market and think to myself…
What are the top opportunities for today?
Every day the market continues to shift, and if you want to be a profitable trader…
You’re going to need to adapt and understand what’s happening.
Listen, I get it, trading can be frustrating…
Most individuals hate change…
But every day I give you key information that can help you better understand what’s happening and what to look for.
Every day I tell my students the same thing…
And most of the time they tell me they heard it before…
But the thing is, I’ve seen so many traders tell me they’ve heard it before and then they go and make the same mistake over and over again.
I don’t want any of you to fall, but if you want to be successful…
That’s why I continue to tell you to focus on these early-morning movers to help put yourself in the best possible position…
But that doesn’t guarantee you success…
You need to understand what to do next.
Understanding The Market
Here was my take on the market on Tuesday morning…
Morning roundup: $TPST $MNTS $NKTX Tuesday runners are weak, solid $AABB spike gives OTCs hope, $TGL $ICU big morning spikes w/range reward dip buyers, but you gotta lock in profits on them as this is a market for taking singles NOT home runs. Study more https://t.co/yIyEIdCYVf
— Timothy Sykes (@timothysykes) October 18, 2023
And I’ve said this time and time again…
Even if I am focusing on a specific group of stocks and I notice a stock that started spiking at any point early in the morning…
Or a StocksToTrade Breaking News Play…
My focus shifts to that to see how it plays out.
With any big runner, there’s a lot you need to think about…
And the more you study and familiarize yourself with my strategy, the better you’ll be prepared.
In this current market, I know I have to lock in profits as they come because this market is NOT for home runs.
Sure, we’ve seen a handful of Supernovas over the last few weeks thanks to StocksToTrade Breaking News…
But so many of these plays that are spiking due to short squeezes are failing and falling quickly.
More Breaking News
- A Tidal Shift? Analyzing The Surging Momentum of HOLO!
- Will MLGO Maintain Its Momentum or Face New Challenges?
- Can Coinbase Global Inc Survive as Digital Assets Fluctuate?
Let me show you what I mean.
Playing Small Ball
I will openly admit I’m a coward when it comes to trading.
I hate to lose money, I hate holding on to plays for a long period of time…
Because every time I do, the market crushes me.
In this market, we’ve been seeing those quick plays, so you need to know what to look for…
Let me show you with my two latest trades.
First was SeaStar Medical Holding Corporation (NASDAQ: ICU)
Take a look at this monthly chart…
Source: StocksToTrade
We are still seeing the same beaten-down stocks come back to life time and time again…
And at the time I’m writing this, ICU is up over 50% on the day.
Stop focusing on those 2%, 5%, or even 10% gainers…
The bigger the better, and it’s all a part of my 7-Step Penny Stocking Framework.
Now, that we know how I spotted this play, let’s take a look at how I traded it.
Source: StocksToTrade
In the chart above, I saw this early morning spiker before the market opened…
Seeing it failed in the pre-market, I was waiting to see if volume could return and for it to retest its early morning highs.
Shortly after the market opened, ICU squeezed higher and broke through its previous high of day…
That’s when I entered my trade at $0.69 and exited just a few minutes later at $0.735 for a 6.52% profit! (Risked $5,865).
Earlier I mentioned that you need to lock in profits along the way…
And that’s exactly what I did.
I didn’t get greedy, and knowing how quickly these plays have been failing, and seeing how fast it dropped earlier in the morning…
I wasn’t about to get greedy.
Next, I traded Treasure Global Inc. (NASDAQ: TGL)
Here’s the monthly chart…
Source: StocksToTrade
Same thing as ICU, just a beaten-down stock that started to squeeze higher early in the morning…
So seeing this stock spike over 70%, I was closely watching it to see if there was a trading opportunity when the market opened.
Source: StocksToTrade
I bought TGL at $0.525 on the morning dip and sold it at $0.50 for a -4.76% loss. (Risked $3,937.50)
I cut my losses quickly, but I want you to pay attention to the line I drew.
After every trade I make, I evaluate it and look to see what I could’ve done better…
Winning or losing.
Looking back at my TGL trade, I drew a line where the stock previously bounced in the pre-market…
After seeing this, I knew I should’ve been more patient with my trade and it’s a good lesson for me.
You can see that the stock bounced off that level back to $0.60 before failing and breaking through that earlier support level.
That’s why you want to analyze your trades going forward as it helps you get a better understanding of how things are working.
Going forward, I’ll remind myself about TGL, and even though we’ve seen so many trades fail immediately after spiking…
This is a good lesson for me to remember because if we start to see more trends like this, it could open the door for more dip-buying opportunities.
Keep studying and remember to take advantage of these FREE trading sessions.
I’ll see you in chat.
-Tim
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