Ever wonder how Master Chefs consistently create amazing dishes?
They use the best ingredients they can get their hands on.
If you want amazing results as a trader…then you have to trade the best setups.
Allow me to explain.
Like a juicy hamburger or a tasty pizza, GTII served a setup that required a simple recipe.
I’m going to show you how these three simple ingredients took a setup like this…
…and turned it into a monster trade.
#1 – Breaking News
News releases are the single most important catalyst for penny stock traders.
Positive headlines can send a stock skyrocketing.
Bad ones can stop a run dead in its tracks.
Verb Technology Company Inc. (NASDAQ: VERB) shows us how all this can happen in a single day.
Early in the premarket, news surfaced VERB planned to go after ‘illegal short sellers,’ a theme we’ll come back to for GTII.
That helped push shares to nearly double after the open.
Yet, it was a second headline that caused the stock to flip like a pancake.
Management announced an offering of additional shares, diluting the current holders.
I drew arrows, but it’s pretty easy to see when the news hit the wire.
Compare that to the chart of GTII.
Unlike VERB, GTII’s positive headline regarding short sellers stood on its own.
Shares traded up a good 50% or so before pulling back slightly.
News catalysts take practice to read and understand.
#2 Former Supernova
I tell folks I teach history.
The same patterns and concepts I used in 2013 work just as well in 2023.
Supernovas are my bread and butter.
Traders like focus on a stock’s first epic run.
After all, those tend to be the biggest.
However, many of these stocks become potential plays later in their lifetime.
You see, once a stock shows it can run, there’s a strong chance it will again.
GTII is a prime example.
I traded this stock last year during its 1st run and again during its mini runs at the end of 2022 and now in 2023.
Will every former Supernova spike again?
Some of them die and delist.
But as long as it’s still out there and active, it always has potential.
#3 First Green Day
One of the unique concepts I teach is the First Green Day.
But to give you the highlights, when an OTC stock runs hard on its first big green day and holds its gains, into the close, you play for it to gap up or run higher the following day.
It’s a pretty simple concept that can be a trading strategy in and of itself.
However, if you combine it with the other two concepts discussed above, it creates some pretty powerful trades.
Think about it like this…
GTII came out and said it planned to aggressively investigate illegal short sellers on Friday.
That pumped the stock which held its gains going into the close on Friday.
As a former Supernova, GTII was pretty popular amongst traders. So it was a good bet that promoters and word of mouth would get folks interested in the name over the weekend.
Sure enough, shares popped hard at the open on Monday, ripping another +30% before all was said and done.
Try using this simple recipe to see if you can find similar setups going into the weekend.
And never be afraid to take profits early.