The market selloff continued on Monday after Donald Trump’s comments about tariffs and the economy inspired increased fears among investors.
Look at the headline below:
You don’t have to experience the same market pain!
While the market dives lower, there are stocks that spike the opposite direction.
For example:
- The market index, Invesco QQQ Trust (NASDAQ: QQQ) fell 12% from all-time highs this year.
- Meanwhile, last week, Plus Therapeutics Inc. (NASDAQ: PSTV) spiked 550%*.
We don’t have to hold and hope in the market! Instead, focus on the hottest runners every day.
It’s better than holding through this weakness … Even seemingly safe assets can dive lower in this market.
Here’s another example, orange juice is down 45% from the highs in September of 2024. Look at my post below:
Learn to take profits.
Especially during times of market fear.
How To Find Profitable Trade Setups
It’s essential that we only focus on the best setups right now.
If there’s something that I don’t like about a stock, I won’t even watch it.
Here’s what I need to see at a minimum:
- A catalyst to push prices higher.
- A low share price so that I can load up on shares.
- At least 1 million shares traded on the day so that there’s enough liquidity to get in and out.
- At least a 20% spike on the day. That volatility points toward future volatility intraday.
Read this blog post for recent examples.
Now, during down markets, sometimes there are days where we don’t see any stocks worth trading.
That’s OK.
Sometimes ‘no trade’ is the best trade to make.
For example, on Monday this week, I didn’t see anything that I wanted to trade, so I sat on my hands.
How To Take Gains On A Good Stock Spike
It all starts with a trade plan.
Understand that it can be easy to recognize a good stock in the market. But when new traders buy shares at random, it also means they have a random plan to take profits.
And that usually results in losses because they overstayed their welcome on a volatile spike.
It’s key to approach these stocks with a plan of attack.
Lucky for you … There’s a science behind this trade process.
The hottest stocks in the market like to follow specific patterns. That’s because the people trading the stocks are predictable during times of high stress. We’re trading human psychology.
And since human beings have always behaved similarly under stress … These patterns haven’t changed in the +20 years since I first traded them.
There are new stock spikes every week that we can trade. Even during down markets!
Remember, I mentioned the 550%* spike on PSTV last week. Get ready for more price action like this:
It wasn’t alone either, Visionary Holdings Inc. (NASDAQ: GV) spiked 640%* last week as well.
Take a look:
Only focus on the best stock spikes. And make sure to take profits!
New traders use my AI trading bot to track these patterns until they become self-sufficient. I taught the AI my entire trading process!
Prompt the AI with your favorite stock and it will give you a trade plan as if you asked me directly.
Cheers.
*Past performance does not indicate future results
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