I have nearly 14,000 personal trades recorded on Profitly…
3 out of every 4 trades I enter turn out to be winners…
Lucky?
Luck is what happens when preparation meets opportunity…
And if your goal is to be consistently profitable year after year…then it all starts with your morning routine.
How does a career 76% win-rate trader prepare for their trading day?
Simply by following these simple steps below every day before the market opens.
Table of Contents
The Early Bird Gets The Worm
Every morning we all have our daily routines that we all like to follow.
Maybe it’s showering, drinking a cup of coffee, eating breakfast, watching the news…
The list can go on and on…
But the important thing to note here is that there is a process that every one of us follows.
And if the process had to change, we would adapt to achieve our end result.
The same thing is applied to trading, every morning I wake up and review what the market is doing…
I will go through my list of stocks in the morning and ask myself these three questions…
Is it a big percent gainer – Is that stock moving in a positive direction?
Penny stocks can be very volatile, that’s why I like to trade them…
A stock with positive news can send these types of stocks parabolic…
But you need to fully understand what could happen next after the stock has had a significant move…
These stocks aren’t going to make you millions in just one trade, but finding these types of plays can make you a significant amount of money to increase your trading account.
So as the stock caught your eye from its recent move, the next thing to look for is…
Mutli-day/month runner – How has this stock been performing overall?
There have been times when I have watched a stock for a significant period of time waiting for the right opportunity to trade.
Maybe some of you remember when I was watching Meta Materials Inc. (OTC: MMTLP) for a breakout and alerted it in my chat room.
After watching this stock for several days, the stock finally offered me some trading opportunities with these perfect setups.
Is there a pattern – Is there anything that is worth trading?
I always tell my students never to trade random setups as they can give you random results.
Instead, I want everyone to be patient and wait for the best setups to come to you.
One of my favorite patterns to trade is the morning panic, it’s the most predictable, especially with these multi-day/month runners that we have seen.
So every time you wake up in the morning, be sure to look for those stocks that are starting to run, are running, and whether there is a pattern.
But even though you are looking for these three key things, there is something else every trader needs to be aware of…
And that is how to adapt.
Adapt To The Market
It is important for every trader to be willing to adapt…
If you look at all of my trades here on profit.ly over the last few years, you would see that my approach has changed.
I’m not changing my strategy, I am just reacting to what the market is doing.
Recently we are noticing a lot of quick plays, which is different than what I am used to trading…
But these are the opportunities that the market is currently giving us.
So be aware that I won’t be trading with a large position size, but I will be testing the overall process.
Let’s take a look at an example…
Swvl Holdings Corp. (NASDAQ: SWVL)
Notice how this stock spiked up quickly, then faded…
Now I want you to go look at another stock, Cryptyde, Inc. (NASDAQ: TYDE)…
Do you notice the same thing?
Volume is being introduced and we are seeing a lot of these stocks spike quickly…
I will alert them in my chat as I see them, but this is why everyone should always be prepared.
But it’s important to also realize that we are seeing a lot of stocks being pumped-up in the pre-market…
Take a look at Zomedica Corp. (NASDAQ: ZOM)
A lot of these stocks are bouncing in the pre-market, but then are failing soon after the market opens.
Now take a look at Spruce Biosciences, Inc. (NASDAQ: SPRB)
Did you notice the same thing?
It’s important to realize what is happening in this market and how things are playing out, so you want to be sure to trade with caution.
Most of these plays right now are happening due to the January Effect…
So as I prepare for the week ahead, I will be looking to capitalize on those stocks that are spiking after the market opens…
More Breaking News
- Sea Limited (SE) Shares Surge: Analyzing the Market Reaction to Strong Third-Quarter Results
- Astera Labs: A Market Surge that’s Hard to Ignore
- TeraWulf’s Stock Surge: What’s Behind the Bullish Momentum?
But trading it safe and looking for a quick profit.
The Ending To Every Trade
Trading penny stocks is like knowing the ending of every book…
All of these stocks will eventually fade away until another promoter looks to pump them up.
Let’s face it, penny stocks aren’t going to make you rich by holding onto them…
And if you are thinking that, you may want to think again.
These penny stocks follow my 7-step framework almost perfectly every time…
It’s not always going to follow the same path as a lot of these runs may last days compared to others…
Just take a look at the difference between AMTD Digital Inc. (NYSE: HKD) and Global Tech Industries Group, Inc. (OTC: GTII)
Both of them follow the same pattern, both of them were Supernovas…
But they both had the same end result, it was just in a different length of time.
Some of these plays may have multiple trading opportunities, but others may only have one or two…
It’s all about recognizing the opportunities as they present themselves to you.
This is why every morning I am looking for those big percent gainers that could be setting us up for a potential panic…
But I like to look for those multi-day/month runners that have been more predictable in providing us with those early morning panics.
Just take a look at Cloudweb, Inc. (OTC: CLOW)
This framework encompasses the majority of penny stocks and their life cycle…
So be sure to master this and know how to recognize these plays when they present themselves…
And not every trade works perfectly all of the time, so please be sure to follow my #1 rule!
End Goals
We are all here for one thing and that is to make more money!
I want everyone to become the self-sufficient trader they need to be in order to be successful!
Don’t be waiting for a list of some of the hottest stocks to buy…
That isn’t being a self-sufficient trader and you’re just destined to lose overall.
Take the time to recognize these plays and start small!
Once you are able to recognize these plays easier, everything will start to come together.
Until next time…
Tim
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