I’ve amassed over $7.5 million in profits throughout my trading career, primarily from day-trading penny stocks.
It’s an area of trading where a 5-10% profit isn’t a yearly aspiration but a daily target.
To an outsider or a traditional investor, such gains might seem absurd.
But it’s not uncommon for some penny stocks to move 50%, 100%, or even 200% in a single day.
So, what fuels these wild rides?
The answer is catalyst.
To truly master the art of penny stock trading and tap into its immense potential, you need to understand the driving forces behind these explosive moves.
I’ll show you the top 4 catalysts and how they can impact your trading.
Table of Contents
Before We Get Started
Catalysts are events or factors that cause a significant change in the price or value of a stock.
It is important for traders to stay updated on various catalysts that can impact stocks. I use the StocksToTrade Breaking News Chat to stay ahead of what’s moving stocks and why.
Below you’ll find the top four catalysts I like trading…
#1 Legitimizer News
This occurs when a small-cap company announces a partnership with a large-cap, reputable firm or government agency.
For example, I bought shares of the ticker symbol OTLY earlier in March when the company announced it was expanding its partnership with McDonald’s in Australia.
The fact that OTLY was attaching itself to the world’s largest restaurant chain made it a buy for me.
https://t.co/liF7qAA2wK Solid legitimizer here
— Timothy Sykes (@timothysykes) March 20, 2023
I was able to make a quick 3.56% profit from the news on an initial stake of $11,950.
Watch for legitimizer news, especially in the tech and biotech space…they don’t occur often…but when they do…they’re probably my favorite catalysts to trade.
#2 Product Approval or Positive Clinical Trial Results
This is especially relevant in the biotech and pharma space.
A positive clinical trial result or receiving approvals from bodies like the FDA can act as a major catalyst.
Such news often results in heightened investor interest, indicating the company’s potential for future revenue generation and growth.
For example, the ticker symbol ICU surged last week after the FDA granted the company’s cytopheretic device breakthrough device designation for Hepatorenal Syndrome.
The stock surged by 87% after the StocksToTrade Breaking News alerted subscribers.
The ICU news occurred an hour before the market opened. I typically wait till the market opens and then look to get in if the stock sells off.
Panic dip buying is just my preference…I know several traders who do well by buying the stock as the news hits.
#3 Celebrity or Influencer Endorsement
One stock I’ve had a lot of fun trading over the years has been the ticker symbol BILZF. The stock is in the cannabis space and has ties to the influencer Dan Blizerian.
— Timothy Sykes (@timothysykes) June 13, 2021
On Jan 19, 2021, I bought shares of BILZF because Dan posted about the company’s earnings results on his millions of followers on his Instagram story.
The idea was simple: his followers would see the post and react positively towards it.
I was able to make a massive 32.5% profit on the trade on an initial stake of $20,335.
These aren’t as common as some other catalysts…but they can make for some pretty awesome trades when they occur.
#4 Earnings Winners
While companies like Apple have dozens of Wall Street analysts covering the stock…there are few to none that watch penny stocks.
And because of that, earnings releases in small caps can be magnified.
I typically like to play these by buying stocks with positive results when their stock price dips.
For example, this trade back in May in the ticker symbol FUBO.
I categorize an earnings winner as a company that reports earnings that exceed Wall Street’s expectations.
They will typically surge post-announcement…but I’ll wait for a dip buying opportunity.
(Bonus) #5 Insider Transactions
If executives or other insiders buy shares in their own company, it can be seen as a vote of confidence in the company’s future.
On the other hand, insider selling, especially in large amounts, can be a red flag.
Mastering the Catalysts That Fuel Penny Stocks 🚀
When penny stocks explode, there’s always a reason. Behind every surge, there’s a catalyst that propels it. I’ve identified and traded based on these catalysts, amassing $7.5 million in profits.
Do you know which catalysts can send a stock soaring 200% in one day? Are you leveraging these triggers to maximize your trades?
🌟 From the undeniable power of ‘Legitimizer News’ to the pull of celebrity endorsements, these catalysts are game-changers in the world of day-trading.
🌟 While some catalysts are evident, others, like unexpected earnings winners, might catch you off guard unless you’re in the know.
The penny stock world is packed with potential, but it’s also riddled with pitfalls. So, how do you capitalize on the right catalysts and avoid the traps?
🔍 Dive deep into the world of penny stock catalysts and refine your trading strategies.
🔍 Learn firsthand how to identify and react to the top catalysts in real-time.
🔍 Discover the secrets behind my most successful trades and avoid the common mistakes that hold traders back.
🔍 See live demonstrations and real-time analysis, unlocking the mystery behind explosive stock moves.
Don’t get left behind in a market that waits for no one.
Your roadmap to navigate the penny stock landscape is here.
Are you ready to be at the forefront of the next big move?
📈 Secure Your Seat and Elevate Your Trading Game!