The market might be ugly right now, but that doesn’t mean there are no trades to be had. Volatility creates opportunities, and if you know how to trade strategically, you can turn even a rough market to your advantage.
In this article, I’ll break down my process for navigating turbulent times and highlight three stocks that are on my radar right now: DatChat Inc. (NASDAQ: DATS), Quantum Computing Inc. (NASDAQ: QUBT), and 22nd Century Group Inc. (NASDAQ: XXII).
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How to Survive and Thrive in an Ugly Market
When market conditions are less than ideal, discipline becomes your greatest asset. Here’s what I’ve learned during my 25+ years of trading:
- Stay Small, Stay Safe
When an opportunity comes along in a choppy market, it’s tempting to go all in. But aiming small helps you miss small. Look for clean setups and focus on protecting your account. - Stick to a Framework
The 7-Step Pennystocking Framework is my bread and butter. Whether it’s a dip buy, a breakout, or a bounce play, sticking to the framework gives you a plan when chaos reigns. - Lock in Profits Early
A volatile market isn’t forgiving. Don’t go for home runs—singles add up. - Don’t Fight the Market
When stocks are falling fast, you don’t have to chase every bounce. It’s better to wait for clear signs of support and volume to step in.
Check out my 5 of my top students’ predictions for 2025!
Stock Picks for an Ugly Market
Here are three stocks that I’m watching closely this week:
1. DatChat Inc. (NASDAQ: DATS) — The Social Media Privacy Spiker
DatChat Inc. (NASDAQ: DATS) has been one of the hottest movers in recent sessions, showing incredible spikes and clear trading setups.
- January 7: DATS spiked 370%* on no news… I jumped in on a dip and locked in a $603 profit on a starting stake of $10,668.
- January 10: A deep dip near VWAP offered another setup. I took a small position, aiming for a bounce, and made $325 (starting stake $15,350).
- January 13: I bought a speculative dip near $5.50, expecting support at that level. The bounce was modest, netting me $250 (starting stake $27,600).
Why I’m Watching:
DATS remains an active stock with a history of massive spikes. The key here is to watch for breaks above resistance levels or panic dips that could set up low-risk entries. Its momentum could lead to another breakout, but don’t chase—stick to the plan.
2. Quantum Computing Inc. (NASDAQ: QUBT) — The Volatile Quantum Play
Quantum Computing Inc. (NASDAQ: QUBT) has been a leader in the recent quantum computing craze.
- November 13: QUBT announced its first order from its TFLN photonic chip foundry, sparking an 1,800%* multi-day spike.
- January 8: The stock faced a sharp selloff after NVIDIA CEO Jensen Huang suggested that useful quantum computers are decades away.
Why I’m Watching:
The selloff has created a wide trading range, offering plenty of room for volatility-driven setups. Whether it bounces back or continues to dip, QUBT’s movement is likely to attract traders.
Other quantum stocks like Rigetti Computing Inc. (NASDAQ: RGTI), Sealsq Corp. (NASDAQ: LAES), and D-Wave Quantum Inc. (NYSE: QBTS) are also seeing similar activity. With big names like NVIDIA and Mark Zuckerberg casting doubt on the near-term potential of quantum computing, these stocks are dropping fast. Watch for potential dip-buying setups.
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3. 22nd Century Group Inc. (NASDAQ: XXII) — The Micro-Float Tobacco Stock
22nd Century Group Inc. (NASDAQ: XXII) gained significant attention after announcing its support for the FDA’s push to regulate nicotine levels in cigarettes.
On January 13, XXII spiked almost 150%, reaching a high of $12.50 before pulling back. I traded it in premarket but was too early and exited the trade when I saw it wasn’t going anywhere. I’m still proud of this losing trade for two reasons…
- I cut my losses quickly
- I focused on a better opportunity in the cancer play Phio Pharmaceuticals Corp (NASDAQ: PHIO)—which I sold too quickly but still made $1,450 on (starting stake $18,950)
This is the kind of discipline you need in a volatile market. XXII is still on my watchlist, I’ll be ready for the next moves it makes.
Why I’m Watching:
XXII has an ultra-low float of just 76,000 shares, making it one of the most volatile stocks on the market. Its small supply creates the potential for sharp spikes whenever demand surges.
While XXII isn’t the next JUUL, its business model appeals to a growing market of health-conscious consumers. The company’s next announcement could trigger another massive move.
How I’m Trading Today
In a market like this, preparation and discipline are everything. Stocks like DATS, QUBT, and XXII may offer significant profit opportunities, but only if you trade with a solid plan.
Always remember: small gains add up. Don’t let the promise of massive spikes push you into overtrading or chasing moves. Lock in those singles and stay patient.
What stocks are on your watchlist this week? Let me know in the comments!
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