Wednesday, January 20, 2021

8 Ways to Bring Your Trading to the Next Level

Penny Stock Millionaires

8 Ways to Bring Your Trading to the Next Level

  • Promoters pull this kind of BS all the time
  • This is my go-to method for trading low float stocks… 
  • If you don’t do this, you’ll never make it as a trader…
  • STUNNING BUY ALERT: Man who picked Apple, Bitcoin makes #1 (click here to find out more from our friends at Legacy Research Group)

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"Your chance to see this is coming to a close"

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This could be the most important message you see all year if you are serious about securing your financial future.

A famed gold expert has said we’re witnessing a rare occurrence in the gold sector that we haven’t seen for years…

In this short message he urges you NOT to invest in anything until you hear this. 

Click here to see the important briefing before it comes down tonight at midnight.

Tim Sykes

Dear Penny Stock Millionaire,

Yesterday, I gave you a primer on stock float and how float interacts with supply and demand. I also promised that I would share ways with you to apply stock float to your own trading strategy. 

So, as promised, here are 8 ways that you can use float to up your trading game.

#1 Pay Attention to Stock Market Indicators

High Volume

One of the key indicators I look for is high trading volume. Trading volume is the number of shares traded during a session. When more shares are bought and sold, the trading volume is higher. A high volume stock is one that is being traded in large amounts.

This is important because high volume means you can enter and exit your positions a lot easier. The last thing you want is to get stuck in a position because nobody is buying or selling. It bites. You can lose big when you’re stuck in positions like that. It’s how I ended up taking my biggest trading loss. 

Trading volume is one of the most common indicators shown on stock charts. It’s usually on the bottom of the chart without needing to change any settings on your charting software. I’d be very wary of trading low volume stocks.

But be aware that volume can spike on news…

News Catalyst

Which brings me to the other key indicator I look for: A powerful news catalyst. News can not only create a spike in trading volume, but it can also lead to powerful price moves. So keep an eye on the news.

You should know why a stock is making big moves. With low float stocks, any pressure on supply and demand can translate into big price movements. If you can’t find a reason, beware.

It could be some kind of marketing campaign without any legs or a pump and dump or some other PR campaign created to jack the price of the stock.

That’s not to say I don’t trade stocks pumped by a PR campaign, but I’m extremely cautious. I want to know exactly why it’s being promoted and when the promotion started.

I want to know if the email I received is sent to the primary list or if it’s sent to list number 10 on day four of the promotion, because promoters pull this kind of BS all the time.

#2 Get to Know Key Stock Patterns

Patterns are called patterns for a reason. They repeat. The beautiful thing is, the human mind is awesome at recognizing patterns. In the stock market, certain patterns happen again and again — and they are learnable.

A few of the patterns I teach are the Supernova, the Stair Stepper, the Snore, and the Crow. 

Of course, it’s easy for me to rattle off a few patterns, but it’s up to you to go do your homework. Once you understand a pattern, see if you can identify it with stocks on your watchlist.

#3 Develop a Low Float Stock Strategy

It’s important that you set yourself up with a trading strategy. This applies to every trade.

You want to know your entry and exit points. You want to understand the catalyst. You want to know the pattern. In other words, you should develop a plan for the trade.

Here’s a hint that will help you learn from mistakes and wins alike: Write down your strategy before you enter a trade.

And if you’re just starting out and are still in paper trading mode, create the killer habit of documenting your trades now, before you trade for real — it’s an invaluable tool.

I want to be clear about this: I don’t trade on gut feelings, over-hyped press releases, or message board tips. I use indicators, patterns, and proven strategies.

Just knowing about float shares and patterns is not a strategy. Your strategy is the entire plan — start to finish — for each individual trade.

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America's Death Spiral Begins April 14th?

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If you’re like most folks, you’re probably wondering how we got here...

America’s institutions are rotten to the core.

Common sense and human decency are relics of the past.

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The prophetic analyst who predicted the subprime mortgage meltdown… the financial crisis of 2008… and Brexit…

Says a grand experiment has been conducted on the American people without our consent.

And the horrifying endgame is set to arrive on April 14th, 2021…

Will you be ready?

Click here for the full details.

#4 Use Technical Analysis

Technical analysis is my go-to method when it comes to trading low float stocks. In this type of analysis, you read the stock charts and use certain indicators to determine whether the setup is right.

But I don’t want you to overcomplicate this. There are a lot of bad, over-complicated indicators out there that I never use. For example, RSI (relative strength index), Bollinger Bands, the Ichimoku Cloud, and Fibonacci retracements never find their way into my research.

Keep it simple.

I like to buy stocks with good news — when they’re breaking out to new highs. I like to short pump and dumps when they have their first red day or bad news signaling the beginning of the end for them. News can be a powerful indicator.

Technical indicators I do look at are things like recent support levels or resistance levels. Maybe moving average or VWAP (volume weighted average price) for a swing trade (a trade that I hold overnight or even for a few days). I also look for morning spikes and gaps.

It’s not that I don’t think some of the more complex technical indicators aren’t valid. But they don’t serve the kind of trading I do.

#5 Use Fundamental Analysis

While I don’t use fundamental analysis as much as technical analysis, I do encourage you to understand it and make it a part of your arsenal. Fundamental analysis is an understanding of company fundamentals. It includes things like balance sheet, projected revenue, and management style.

Company fundamentals can affect the stock price. They can also give you food for thought when it comes to trading. You might see something to support your belief that a run has legs. You might also see why a stock run won’t last and be prepared to play the crash and burn.

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New Banking Rule to Impact 234 Million Americans

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If you have any money in the bank, please pay close attention to what this man above has to say…

He’s a former vice president of a major U.S. investment bank…

And he’s discussing a new banking rule that could impact 234 million Americans, maybe even you.

Click here to see the details of what has been called “a complete game-changer.”

Warning… This has nothing to do with a bank run or major bank failures.

What this man is talking about is far more sinister…

Because it’s a risk NOT covered by the FDIC insurance.

Click here for the details.

#6 Develop a Stock Watchlist

A stock watchlist is essential for trading. You won’t (and shouldn’t) make a play on every stock you watch — more like maybe one out of every five or 10. Maybe even one out of 20.

But if you’re not already watching a stock, doing your research and due diligence, and creating a strategy for your play, it’s easy to get in a bad situation. Your watchlist is an essential part of your preparation.

#7 Use a Stock Float Screener to Find Breakouts

We live in amazing times…

That said, don’t waste time doing things the wrong way!

When I first started I sometimes had 3 or 4 different computers going, with internet browser windows open to different websites and tools. Things are a lot simpler now. You can use a stock screener to find low float stocks that meet your setup criteria.

#8 Never Stop Learning

You might realize by now that there are some foundational principles by which I live. And I recommend them to all my students. One is “never stop learning.” There’s always something to learn to be a better trader. I still study every day.

This is such a crucial concept that I continuously harp on about it. But if you look at the top people in any field you’ll see it’s the same — they all keep learning, practicing, and improving. Constantly. If you want to boost your chances of succeeding at this then you have to keep learning… it’s not even an option.

The Bottom Line

Understanding stock float and floating shares is an important part of your trading education.

So make sure you really understand this!

The float has a huge impact on supply and demand when something causes a price movement. The lower the float, combined with increased volume, makes big price swings possible.

That’s why low float stocks rock.

Regards,

Tim Sykes
Editor, Penny Stock Millionaires

P.S. This just in—from our friends at Legacy Research Group:

Teeka Tiwari, the man who picked Apple and Bitcoin, just announced his #1 investment for the upcoming year

“This is a historic buying opportunity,” says Tiwari, who’s investment recommendations have averaged 154% per year since 2016. 

That’s 10X the S&P. And 81 times the average investor, according to JP Morgan. 

Teeka recently traveled to Trump Tower and Davos.

And what he uncovered will stun you…

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