After struggling last week with six straight trading losses— I’m BACK.
I nailed my last seven trades.
This is truly the golden era of trading right now.
If you’re not studying daily and working on developing your skills— you’ll likely miss out on these opportunities.
But before you go there, I want to talk about a trade I had in the ticker symbol IQST.
That’s because this pattern is hot right now and I want you to be able to identify it, and potentially profit from it next time you come across it.
Table of Contents
A Classic Returns
Markets are constantly changing.
That means some setups will work better under certain conditions vs. others.
I’ve found myself tinkering with new ideas this year…trying my best to adapt.
But it’s always nice to see an old favorite return—The First Green Day Setup.
What Made IQST An Attractive Play
I was initially interested in IQST when I saw this headline:
IQST – iQSTEL Launches Proprietary AI Backed Metaverse App Into $900 Billion Market
The news came out early and the stock spiked quickly…
I didn’t get a chance to buy right away…and I wasn’t going to chase.
I was either going to dip buy…or wait to get in later.
My thinking was that if more people found out about the story…it would have a chance to run into Thursday…
This is a classic First Green Day Setup…
I got an opportunity to enter at an average price of $0.188 on Wednesday with the goal of getting out the next day on a gap up for 10-30% profits if I was right.
And if I was wrong…I would get out fast and cut losses quickly.
Well…the stock did exactly what I thought it would…and I was able to peel out of my position at $0.23…good for a return of 22.3%
So why did this work so well?
Unpacking the OTC First Green Day Setup
Three specific indicators must align for a consistent OTC first green day play. These include:
- Big percent gainer with volume: The stock should be up enough that scans pick it up.
- Holding gains: Towards the close, the stock should be at, or near, its high of day (HOD).
- News catalyst: A significant announcement or news affecting the stock should be present.
In the case of IQST, the launch of their AI-backed Metaverse app provided the news catalyst, it showed significant gains with volume, and it held its gains, thus aligning perfectly with the first green day criteria.
Lessons from Past Trades
Understanding the nuances of the first green day setup comes with experience and learning from past trades.
For instance, in September 2019, Ignite International Brands Ltd (OTCQX: BILZF) presented a perfect first green day setup during the 2019 Trader & Investment Summit.
Their post about the availability of their stock on the US market created an informational inefficiency, leading to a huge morning spike.
This was a valuable lesson about the potential for penny stocks and how focusing on ideal setups can reduce trading frustration.
The IQST Trade: A Classic First Green Day Setup
This trade serves as a lesson that the OTC first green day setup is about recognizing the setup and being patient for the indicators to align.
Once you can identify these patterns, you can position yourself to trade them effectively.
As always, it’s crucial to remember that not all setups will work out as expected.
Even with a potential winning pattern, the key is to maintain a disciplined approach, carefully managing your risk and reward, and learning from each trade.
If it doesn’t work…DON’T FIGHT IT.
Cut losses quickly and live to fight another day.
Remember, focusing on patterns that make sense can help reduce trading frustration. So, learn the OTC first green day setup, recognize them, and position yourself to trade them.
The more you see it…the more comfortable you’ll get with them.