I love small cap stocks this time of the year…
With most of Wall Street off for the holidays, a lot of the trading volume shifts to small caps– creating some explosive opportunities for prepared traders.
Not that I need any extra help…my trading has been on fire lately!
One of my best wins during this recent stretch has been in the ticker symbol SHOT…
… a stock that followed my 7-Step Penny Stock Framework to the letter.
Now $SHOT has more than doubled from my https://t.co/NFpygler5m buy and I sold wayyyyy too soon, good lesson for me as my over-the-weekend strategy on perfect https://t.co/46W8tDBAGj plays must be respected…at least I wasn't like too many short sellers shorting in the $2s/$3s! https://t.co/Mvex1ttZ47
— Timothy Sykes (@timothysykes) November 21, 2023
Stocks like these are great not just because they create tradeable opportunities on the front side of the parabolic moves but on the backside as well.
The trick is learning how to spot these patterns and then apply the correct setup.
That’s what I’m going to break down for you today.
These are the three top components to finding monster plays like SHOT and how to take advantage of them.
Table of Contents
Very Few Strategies Have Worked Better For Me This Year
I have a confession…
I’m a former degen trader.
For example, I used to jump into trades right before a flight…knowing I’d have no WiFi…just for the thrill of it.
I know, it’s terrible to say…and I’m not glorifying it. The reason why I’m sharing it is because if I can evolve so can you.
You don’t have to be glued to your screen all day…
You don’t have to trade ten symbols each day…
And you don’t have to eat…sleep…breathe trading to be successful.
Over the years I’ve focused on becoming more disciplined, not overtrading, and becoming less of an action junkie.
To do this, I had to zero in on setups and strategies that required limited screen time…while offering the greatest opportunity.
I utilized one of those strategies in trading SHOT last Friday…it has since more than doubled.
3 Tells Safety Shot (NASD: SHOT) Was Primed To Take Off
#1: News Catalyst
Most of Wall Street could care less about small and micro cap stocks.
Why?
There’s not enough money in them for bankers and underwriters to truly care. That’s why you rarely see a top-tier Wall Street firm cover a micro cap stock.
And when there’s no analyst sharing their insights…these companies rely heavily on press releases.
Most of the press releases come off scammy…but whenever there’s one that appears legit…it has a strong likelihood of creating some powerful momentum.
On November 17th, a Friday, mind you I bought shares of SHOT.
Why?
Because the company announced it was the official title sponsor of Save our Musicians Foundation Special Night with Luke Bryan.
If you’re a fan of country music then you know how big a deal this is.
Besides the press release…SHOT has an interesting product.
The company claims to have the first patented beverage on earth that helps people feel better faster by reducing blood alcohol content and boosting clarity.
The crazy thing is that the press release was on November 8th, which just goes to show how much opportunity there’s in these stocks if you just do your homework.
#2: It’s All About Timing
With the charity event on Saturday, I knew that Friday was the last chance for me to get into the stock.
If it was deemed successful, it would have brought a lot of hype around the company, and into the stock.
Now, this isn’t something new to me…
It’s actually a strategy I’ve traded for years.
It’s called my weekend strategy.
And it’s been one of my successful strategies throughout my career, including this year.
My thinking is that they would release another press story highlighting how the charity event went.
I felt that the odds were stacked in my favor that the stock would catch a bounce on Monday.
And it did just that.
#3: Short Sellers Join The Party
On Monday the company released a statement it was doing a West Coast launch on December 7th in California.
And the stock took off…climbing above $4.30.
At this point it has more than doubled since the November 8th press release…and short sellers are calling BS on the company.
While my experience has taught me that a lot of these companies disappoint…and it’s hard to trust them…I also don’t believe in fighting the tape.
And in the case of SHOT, the momentum was clearly bullish.
So it was no real surprise to see it squeeze higher on Tuesday, trading above $7 per share!
It went from relatively unknown…to being one of the most traded stocks on Wall Street yesterday.
Source: StocksToTrade
#4: (Bonus) SHOT Followed My 7 Penny Stocking Framework
As quickly as SHOT spiked yesterday…it came crashing down.
But that didn’t come as a surprise because it followed my 7 Penny Stocking Framework to the letter.
In fact, step four in the process is the crash, and that’s what we saw yesterday.
Remember this chart well, its the basis for my 7-step framework, @30DayBoot & @completepenny & you must study not to fall prey to greed/ignorance or you'll get wrecked like 90% of traders. It's VITAL to sell into excessive strength/hype, do not just hold & hope like most newbies pic.twitter.com/QsAGHsI6lp
— Timothy Sykes (@timothysykes) February 28, 2021
If you’d like to learn more about the 7-Penny Stocking Framework just hit play on the video below:
Learn How To Trade My Weekend Strategy For $1
Discover how I trade stocks like SHOT before they make their explosive run ups…
Take advantage of this massive discount now before it vanishes!
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