If you are having a tough time finding trades in this market, you aren’t alone.
Whether you are a new trader or an experienced trader, we all know that no trade is ever a guarantee…
But what you can do to prepare for it can give you the upper hand.
I am sure most of you have played a sport in your life, or maybe an instrument, so what did you do to get better…
You practiced! I bet most of you probably practiced multiple times a week!
The same thing has to apply to trading, you need to practice!
But you also had a tool to help you with that sport or instrument, and it could’ve been something as simple as a glove, or cleats…
These tools helped you perform better, and the same thing applies to trading.
There are tools out there that can help you find these opportunities, but how you trade them is entirely up to you.
In fact, I was alerted about a stock last week…
Table of Contents
Link Reservations Inc. (OTC: LRSV)
This tool helped traders profit up to 87% on just a single trade, so how would you trade it?
These tools can help you spot the opportunities, but what you do next is critical to your success.
So let’s break down a recent trade of mine, how I was able to spot it, and what you can do to get ahead of the game!
How To Know When To Dip Buy
I have met many traders who said, “I think this stock should go up” and traded it…
NOT the right approach, I don’t want ANY of you trading any stock just because you THINK it should go up.
I want all of you to have a plan in mind and be prepared for when a stock fits your trading strategy.
As many of you know, I prefer to dip buy, it’s one of my favorite patterns…
So how do I know a stock has the possibility of a panic?
First, you want to look at the big picture and see what the stock is doing.
You don’t want a stock that is trending downwards, or moving sideways…
You want a stock that is trending upward for the last several days.
Here is an example…
Vision Energy Corporation (OTC: VIHDD)
Notice that this stock moved up several days before it panicked, this is what you want to look for.
If it doesn’t have it, you don’t get the same predictability.
So how do you find stocks trending upwards?
Look for big percent gainers, there are a lot of advantages to finding these types of stocks with a small trading account.
Also, look for stocks that have high volume compared to their average volume and what the overall chart looks like…
Now you have found a stock trending upwards for several days, this is what you should do next…
Taking One Step At A Time
There are multiple steps from start to finish you need to think about before placing a trade.
Last week, I made a trade where I profited 8.33%…
But it was a small trade, which I encourage all of you to do while you’re learning these patterns.
You can learn a lot from small trades and as we all know, practice makes perfect…
So let’s break down what I saw last week.
Looking at the chart, we noticed this stock was a multi day runner.
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XCPCNL Business Services Corporation (OTC: XCPL)
The stock has started to panic over the last few days, but you can see it has a lot of support at $0.007.
Noticing that there was a lot of support at $0.007 I was able to know what my exit price would be if the stock was to dip below that.
Below is where I bought and sold my position with XCPL.
Notice that once I dip-bought this, the volume flattened out, which didn’t give me the sharp morning panic I prefer…
But I was still able to profit from it with a small position size, giving me the practice that I need to stay sharp with these patterns.
Next Steps
There are thousands of stocks out there in the stock market, but I don’t want you trying to dip buy on every possible stock…
I want you to be able to spot the ones that have the best opportunities for you to be successful.
This isn’t about trading 10-20 stocks in a day…
It’s about finding 1, 2, or even 3 trades that fit your strategy perfectly.
In the end, it’s all about making money, not who can hold a record for the most number of trades in a day.
This week I want all of you to start looking for those big percent gainers and see if they are multi day runners…
Or if they broke through a key resistance level and have big volume…
Remember, practice makes perfect!
Until next time…
Tim
P.S – We all know it’s never easy to find perfect trades in this market. But what if I was to tell you that Tim Bohen, our lead trainer, has a secret to help you find the perfect trades every morning and here is what you can do to find them!
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