For months I’ve been telling people that this is a year for learning.
Because the action in the market wasn’t great…there was tons of uncertainty surrounding the economy, interest rates, and mass corporate layoffs.
It was choppy out there, which made for some difficult trading.
But that now all looks like it’s behind us.
With the stocks breaking out of recent ranges, I see SOLID spikers and many classic patterns playing out perfectly.
I’m going to show you what I mean by breaking down a few of my latest trades, what I saw in them, and I was able to profit from the opportunities.
Table of Contents
Short Sellers Are The New Promoters
I get it…
A lot of these stocks going on these runs are pretty crappy.
But if you’re trading, then you’re not an analyst.
Who cares about the fundamentals if you’re in something for just a few minutes?
These short sellers pretend they are doing the world a favor by exposing these companies…
But the truth is…they are the reason why some of these stocks are pumping so hard.
And let’s not forget…there’s an investigation on short sellers and all their shady acts.
But I love trolling them…
Because if they go on tilt…they’ll create more opportunities for you and I.
Like they did in KSCP…
I traded this stock on Thursday after it gapped down big…
I was able to get in at $1.44 and peel out at $1.65…good for a profit of nearly 15%.
The truth is, this stock probably has no business running…but the shorts are overaggressive, and they are getting steam-rolled.
I mean, this stock on Friday rallied by more than 30% again…
So even the most beaten up and hopeless names are rallying right now.
You Can’t Just Hold And Hope
Investors once had high hopes for stocks like NKLA…
Those expectations are now gone…
But that hasn’t stopped shorts.
They see a $2 stock and think there’s $2 they can make on it.
However, even damaged stocks like NKLA can catch a bid thanks to overzealous shorts.
But keep this in mind…think like a trader not an investor.
You want to be in and out quickly.
Don’t get greedy…and if the trade looks like it won’t work, then bail.
It’s better to cut losses quickly.
Right now, the market is giving us so many opportunities…it makes no sense to be married to one position or idea.
Patience & Discipline Are Essential
Shares of Nvidia have been 🔥.
When Recursion Pharmaceuticals announced a collaboration and an investment from Nvidia…the stock took off.
But despite the bullish pre-market news…the stock sold off significantly from its +18 pre-market high.
Typically, I avoid the pre-market because that’s where I’ve experienced some of my biggest trading losses.
Instead, I want to focus on buying dips on panic sell-offs.
And while I did trade it the day it had news…my best trade in the symbol happened the day after.
I was looking for some panic selling in the $10s near the open…
And that’s exactly what I got…
I pretty much timed this one perfectly, getting in at $10.62 and out at $10.90.
Looking at the chart, you’ll see I got too early…the stock traded above $12…
But I’m not going to beat myself up about it.
Because the next opportunity is around the corner.
And that’s the mentality you need to have in this market.
A few of my students wanted to know why I decided to dip buy in the mid $10s…
If you look at the longer-term chart…you’ll see that level was once resistance.
This isn’t always true…but a lot of times what was once resistance becomes the new support.
Now, don’t take this as gospel because it isn’t foolproof.
But that’s what I was using as my base level for an entry.
Is It Time To Earn?
The market is feeding us with opportunities left and right.
If you’re missing the skills needed to take full advantage of these opportunities then do yourself a favor…