There are HUGE opportunities to profit in the market right now.
Just yesterday we watched Nkarta Inc. (NASDAQ: NKTX) spike 60%.
It wasn’t the only spiker. Solid Biosciences Inc. (NASDAQ: SLDB) spiked 60% as well.
And there’s something that links these stocks together. It’s not the similarity in the spike percentage …
There’s a trend in the market right now.
We saw the same trend in 2023, and January’s volatility is exacerbating the pattern.
Now is the time to trade.
Most people think that small-cap price action is full of meaningless volatility. That’s not true.
There’s a specific process my millionaire students and I follow for profits.
- We only focus on the best setups.
- We follow specific trade plans.
- We sit in cash until the perfect entry.
I’ll explain the details in today’s post.
This is how I profit from volatile stocks.
Keep reading …
Hot Market Trend
The stocks at the top of my list are biotechs.
They were hot during all of 2023.
Specifically low-float biotechs. The low supply of shares helps prices spike higher when demand increases.
That’s why I made a play on $SLDB yesterday.
Ultimately, that trade ended in a loss. The details are below …
Source: Profit.ly
Yes. Even millionaire traders take losses.
Losses are part of the game.
That’s why we focus on the best plays. To minimize the chance of a failed trade. And we trade with patterns because the pattern helps us recognize a failed trade before it gets ugly.
If we can control our losses, the profits will outshine them.
If you check my Profit.ly account, where I share all of my trades, my win ratio is 76%. It’s pretty good. But nowhere near perfect.
- I took a 1.82% loss on $SLDB.
- But my wins can exceed 30%.
I’m still up on the year. So far I have $1,696 in total trading profits in 2024. A $180 loss is pennies on the dollar.
Plus, I was in the right place. I was watching the right stock. I’m following the right sector. I just need to stay patient and follow the process.
My Profit Plan This Week
I’m following biotech spikers.
But I’m especially interested in multi-day runners.
The multi-day strength gives me more confidence when I’m trading versus a day-one spiker.
There are three muli-day biotechs I’m following in addition to the tickers that I shared earlier.
- ReWalk Robotics Ltd. (NASDAQ: RWLK)
- Inovio Pharmaceuticals Inc. (NASDAQ: INO)
- Elevation Oncology Inc. (NASDAQ: ELEV)
And here’s the best part: The patterns that I use to trade never change.
The stocks come and go. They’re sketchy penny stocks, after all.
However, the volatility can follow the same patterns. Human beings are predictable. And thus, so are certain stock spikes.
There’s more than one pattern in play right now. On Monday I used this one. It ended in a loss, but the pattern kept my account safe
This next part is important: Depending on the price action today, I may use a different pattern.
All of these volatile stocks follow the same framework, but the patterns we use to trade them depend on where the chart is within the framework.
It’s not a complicated process. But it does take practice.
Here’s the good news …
In the beginning, my students were at the whim of the market. Trying these strategies on their own. But thanks to technological improvements, new traders can watch trading live streams to gain experience without the same account exposure.
We’re following the best setups every day LIVE.
You don’t have to make this journey alone.
Follow the path of other millionaire traders.
What’s your win ratio in 2024 so far? Honest traders build the best trading habits. Comment below — I love to hear from YOU!
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