In the unpredictable world of trading, there’s more than meets the eye.
Whether you’ve been in the trading game for a while, or you’re just starting off, it’s crucial for you to be able to spot the patterns that give you the best chances for success.
Over the last several days, I noticed a trend in the market that hasn’t happened in a while…
And this latest trend has helped me profit on my last seven of eight trades.
Let me be honest, I don’t expect this market to cool down anytime soon…
We’re finally seeing plenty of opportunities for you to take advantage of, and I want you to be prepared more than ever!
So today I’m going to break down what I’ve been seeing, and how it has helped set me up for success…
And what you can do to help you spot your next trading opportunity.
Table of Contents
Recognizing The Patterns
Trading has given me the freedom to travel the world, and I’m always looking to share my thoughts and ideas with everyone I can.
Some traders out there still think I got to where I am today simply by luck…
To be honest, that’s the furthest from the truth.
I got to where I am today, and so did my millionaire students, by understanding the process and putting forth the time and effort to study everything imaginable.
And if you think trading small-cap stocks compared to large-cap stocks puts you at a disadvantage…
Think again.
You still need to be able to recognize specific patterns that fit your overall strategy…
Period.
You won’t find those Wall Street “monkeys” randomly trading what they think “looks” good.
They have precise plans in place. They know what to look for every minute of the day…
Similar to how I focus on big percent gainers every single day, which is a key piece of my strategy when it comes to trading with a small account!
With all of these opportunities out there, it’s difficult to take advantage of them all at once, so it’s important to exercise restraint and not to overtrade.
Out of those opportunities you find, pick the best ones that fit your strategy…
But also remember just because you don’t trade them means you should just forget about them…
Add them to your watchlist because not all of them may be solid enough to trade that day, but they may be setting up for something better down the road.
Let’s break down what I’m talking about in these three examples.
Joby Aviation, Inc. (NASDAQ: JOBY)
When I missed the early morning spike for JOBY, I resisted the temptation to chase it.
Instead, I continued to monitor it over the course of a couple of days.
Unlike many traders who solely focus on the present moment and buy into the hype, I understand the importance of patience and extended observation.
Way too many traders try to guess when they should buy…
This is why I continue to share my thoughts and ideas with you, even if I do repeat myself because I want you to better understand the process that has helped me for over 20 years…
And helped all 30+ of my millionaire students and counting.
With JOBY, I planned to dip buy a morning panic, and all of us should know that trading isn’t an exact science…
So as that opportunity never presented itself, I decided to buy it one morning as the stock spiked higher…
Mainly because I noticed that the stock bounced off a key support area three days in a row and I figured it could do it again.
iQSTEL Inc. (OTC: IQST)
IQST is another stock that I spotted that was spiking early in the morning, and the first thing I told myself was not to chase it.
Even though new traders who did chase it may have gotten lucky in this instance, the majority of the time, they won’t.
Looking back at IQST, I didn’t need to trade it…
But I told myself since this was a former Supernova, it has a news catalyst and it was a Friday Green Day that is breaking out…
Why not?
As those components fit in with my overall strategy, and when you combine all of those together, you don’t know how far the stock could go.
Once again, I traded with a small position size and was happy to lock in profits the next morning.
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Mullen Automotive, Inc. (NASDAQ: MULN)
The reason I like MULN is because it’s a previous Supernova…
But just because it is doesn’t mean you should instantly buy it.
If you look back at the last two years, you’ll notice that the stock has been beaten to nearly nothing…
And the reason I’m bringing this to your attention is if you find a stock that is beaten down to nearly nothing, that doesn’t mean there won’t be an opportunity to trade it.
Looking at the chart above you can see on Thursday of last week, it did panic near $0.20, but it was very choppy…
And then it tried again on Friday.
At the time I’m writing this, I don’t know where it’s going to bottom…
But I’m simply just patiently waiting to see if it does panic like I want it to. Remember, the bigger the panic, the better the chance for a bigger bounce.
If it does panic, remember, it doesn’t always mean it will bounce, so be sure to cut losses quickly if things don’t go as planned.
Final Thoughts
With these early-morning spikers, I typically have two plans of attack…
Dip buying them, or buying the breakout.
I never look to chase them, unless I catch a StocksToTrade Breaking News alert before it spikes.
In the fast-paced world of trading, you need to keep an open mind and be willing to adapt to what’s working in the market.
Who knows how long these specific trends could last, so be ready for when the market changes again.
Trading with a small account has its advantages, and it’s important for you to keep up to speed as to what’s happening…
So be sure to follow me here to catch what I’m thinking at all different hours of the day!
I’ll see you in chat.
-Tim
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