Right now, with certain penny stock strategies, it’s almost fire at will. While the world goes on various levels of lockdown and shelter-in-place, it’s the perfect opportunity to learn. If you’re already trading — take advantage of this volatility.
In this edition of the update:
- My coronavirus concerns: Why #StayHomeStaySafe is SO important.
- Why your education versus entertainment ratio is crucial during the lockdown.
- My new Facebook group and why you should join.
- I explain recent trades. (There are so many — I chose two with good lessons.)
- How penny stocks hit mainstream media this week. (I was quoted in a “U.S. News and World Report” article on penny stock trading.)
- PLUS: questions from students.
Let’s jump right in…
Table of Contents
- 1 Shelter in Place
- 2 Trading Lessons From the Coronavirus Quarantine
- 3 Trade of the Week
- 4 Trading Questions From Students
- 4.1 “Tim, I’m new and trading under the PDT rule. Given the recent market volatility, which two patterns should I focus on?”
- 4.2 “When you alerted your SGLB trade, someone in chat said you were trading an illiquid stock. But it was trading 10 times its average daily volume. Do you pay attention to the average daily volume?
- 5 Millionaire Mentor Market Wrap
Shelter in Place
I’m sheltering in place on the West Coast — waking up at 5:30 a.m. for the U.S. stock market. I would have preferred to hunker down in Europe since the U.S. market opens at 2:30 or 3:30 p.m. in Europe — which means I can sleep until noon. But many people didn’t get to choose where they have to stay put … and neither did I. What’s happening in the world is pretty crazy.
Again, my prayers go out to all the victims and everyone affected.
The U.S. now has the highest case total worldwide. As I write, we have 138,908 cases. New York is the nation’s epicenter, but the virus is in all 50 states. As a country, our infection and death rate curves are both on the rise. We’re seeing thousands of new cases and hundreds of deaths every day.
My biggest concern is…
The U.S. Will Soon Experience Overwhelm
Here in the U.S., we have a big lack of supplies. That could overwhelm the hospitals. Italy is overwhelmed and now Spain is getting overwhelmed…
View this post on Instagram
⚠️WARNING: GRAPHIC CONTENT⚠️ Repost from @karmagawa Here’s a sad video of a hospital in Spain overwhelmed with coronavirus patients and this is the absolute biggest risk with this crisis right now — the fatality rate goes up big time when our hospital systems can’t handle the number of patients that require immediate treatment. Because in too many areas right now there’s simply not enough hospital beds, ventilators and intensive care units (ICUs) so it’s EVERY person’s duty to social distance and stay home as much as possible in order to limit the spread of this virus and reduce the number of people who need to go to the hospital. This message is especially aimed at too many young people around the world who are going out in groups, mistakenly believing that they’re immune to this virus when in fact they’re not as studies have shown that even people without symptoms, young and old alike, can be infected and can also spread the virus unknowingly. So, please be considerate of understaffed hospitals and healthcare workers around the world and #stayhome if you can and also help us spread awareness about this urgent issue with everyone by sharing this post, and our other recent posts about the hardworking medical professionals all over the world too, with your followers, friends and families and tagging people who need to see this as we must all work together to save as many lives as possible! #stayhome #coronavirus #savelives #quarantine #socialdistancing #karmagawa
According to New York Governor Andrew Cuomo, “We have patients that have been 20 to 30 days on a ventilator.” To put that in perspective … non-COVID-19 patients usually spend three to four days on a ventilator.
It’s very concerning that a lot of Americans think this is nothing. They’re making it worse.
Please do your part and stay at home. Read this post about the biggest coronavirus risk right now. It’s up to each of us to do the right thing. Also, when you post on social media use #StayHomeStaySafe on every post. Do it to protect our frontline healthcare workers and the entire system.
That said, here are a few…
While you’re at home you should be studying and learning every day. There are so many freaking stocks right now — which is a good thing. But no matter what’s going on in the overall market, learn every day.
If you take the time to learn every day, you can come out of this lockdown ahead of those who choose to binge-watch Netflix or play video games. So spend this time learning. Study every day. No. Days. Off.
With that in mind, I just started a new Facebook group called…
2020 Stock Market Updates
Join this group for regular (and up-to-date) stock market video insights. I make a new video almost every day — often just after I’ve made a trade. Some videos are daily recaps. It’s a great way to gain insight into my mindset and strategies.
Also, the group is a perfect way to see how amazing the current market is for penny stocks. I’m just trying to keep up.
There are so many plays right now with all this volatility. Take advantage of this amazing time in penny stocks. Don’t get sidetracked by what’s going on with the overall market. Don’t worry about where the Dow, S&P 500, and Nasdaq end up at the end of the day or month.
Don’t worry about where the $DIA $SPY $QQQ will be at day’s end or month’s end, just keep taking it one trade at a time and recognizing which sector is hottest, like $TLRY $CRON leading weed stocks vs. all the #coronavirus spikers like $AIM $ASTC $IBIO $XSPA being weak today
— Timothy Sykes (@timothysykes) March 26, 2020
Instead, take it one trade at a time and recognize which sector is hottest.
Penny Stock Strategies Gain Mainstream Media Attention
All the volatility in the stock market has people wanting to learn to trade. So much so that penny stocks are even starting to hit mainstream media. Check out this article in “U.S. News and World Report” from March 27…
Even though it barely scratches the surface, it does feature quotes from me.
Now it’s time for the…
Trade of the Week
No one trade stands out for me. It’s all about taking advantage of the opportunities. The best trade is … being ready for all the trades.
I’ve made $20,000+ the past 2 weeks with no $TWTR access and just trading small, scary overall markets, just keep hitting single after single with #coronavirus stocks, sooooo many plays! My students have made $2+ million in Marsh. Stay safe everyone, financially/health-wise too!
— Timothy Sykes (@timothysykes) March 26, 2020
It was just one of those weeks where every day there was play after play.
Here are a couple of examples of penny stock strategies in this crazy market…
IMAC Holdings, Inc (NASDAQ: IMAC)
First, take a look at the IMAC six-month chart:
On March 26, I bought IMAC as it spiked on solid earnings. A student alerted this play alerted in the Trading Challenge chat room. It’s another example of why it’s key to choose the right trading chat room.
This time it was Profit.ly user RBI with this simple but valuable alert…
09:43 AM RBI: “IMAC volume.”
That was enough for me to check the chart, check the news, and recognize what was happening.
Here’s the chart from March 26…
Whew! As you can see from the chart, it moves fast. I love plays like this, but it’s key to not get greedy. Take the single and be happy. This trade was an 18.25% winner for a solid $2,256 in profits.*
(*Please note: my results nor the results from my top students are not typical. I’ve spent years developing exceptional skills and knowledge. Always remember trading is risky. Never risk more than you can afford.)
And it wasn’t only me. Check out these…
Comments From the Trading Challenge Chat Room**
9:44 AM lklepp15: “quick in out of @IMAC in at 2.39 out at 2.55.”
9:45 AM JoshRivers: “wow what a spike from $IMAC got a small piece out for $500.”
9:46 AM Familyguy: “Longed $IMAC from 2.6 to 2.8 for a very quick 8%.”
9:57 AM ZenTrader1991: “First winner trade ever with $IMAC.”
Here’s another play from March 25…
Predictive Technology Group, Inc. (OTCPK: PRED)
PRED was another coronavirus test play spiking on news of a SARS-CoV-2 antibody detection test that can return results in 15 minutes.
Take a look at the PRED chart:
On this trade, I bought the morning spike. As you can see from the chart, the morning spike fizzled. So I took the single for a 10.5% win and $432 profit.* Then it spiked 60% in the afternoon, so I was a little off on my timing. You have to understand this is not an exact science.
Again, there are SO many plays right now. I very rarely use the term ‘fire at will’ but that’s what’s happening. Anything with coronavirus news can spike. Any company with a press release and big volume.
We’ve also seen a lot of coronavirus supernovas. Which brings up my latest newsletter…
Supernova Alerts started in January, and we’ve had a bunch of solid alerts. You can get more information and subscribe to Supernova Alerts here.
For example, on March 25 I picked Astrotech Corporation (NASDAQ: ASTC) as a potential winner near the open at $3.60. Check out the ASTC chart from March 25…
When it went down to $3.30 right after the open, I started getting a lot of angry messages. People were asking, “Why is it going down?” Then it shot up to the $7s and all the complainers recognized the pattern is real.
Congrats to Supernova Alerts Subscribers**
March 25, 10:32 AM Sumaznguy611: “Thank you so much Tim! I barely started and my account is still extremely small but I am glad I saw your alert and acted on it!”
March 25, 10:40 AM Starrynyte: “sold a bit early as this jumped to 7s.”
March 25, 11:00 AM MDM: “Played it pretty well, thanks Tim for your teachings.”
March 25, 4:49 PM 93andy: “Got alerted on 7:30 am and exit at 4:20 to take single didn’t wanna wait till 6s or 7s.”
March 26, 11:23 AM cody_robo36: “Freaked on a choppy trend… took profits into losses… could have done better.”
March 26, 11:26 AM cody_robo36: “Continued to watch ASTC go full supernova and had to get in on it one more time.”
Too few people realize how many opportunities there are and much money you can make during a market crash of you’re prepared and stay rational while everyone else is freaking out…much better valuations now too, healthy for the market in the long run!
— Timothy Sykes (@timothysykes) March 26, 2020
After you read the rest of this post watch the Supernova Alerts webinar replay.
[**Students’ results are NOT typical. Roughly 90% of traders lose. Always remember trading is risky, and never risk more than you can afford.]
Let’s get to some…
Trading Questions From Students
The first question this week is from a brand-new Trading Challenge student. The Trading Challenge is my most comprehensive course. If you’re ready to study your butt off and learn all my penny stock strategies, apply today. Be aware that not all applicants are accepted … the Trading Challenge requires a serious commitment.
“Tim, I’m new and trading under the PDT rule. Given the recent market volatility, which two patterns should I focus on?”
First, if you don’t know what the PDT rule is…
It’s a rule put into place by FINRA to discourage new traders from overtrading. Until you have a minimum of $25,000 in your account you can only take three day trades per week. Read my post on the pattern day trader rule here.
Again, you have three day trades per week. So focus on these penny stock trading strategies and patterns…
Dip Buying Morning Panics on Recent Winners
For example, with IMAC you could have bought it in the $2.60s, $2.70s, or $2.80s like I did. (In another trade — not the trade reviewed in this post. It was a dip buy into the morning panic on March 25. See the details of that trade here.)
If you sold it in the $3.10s to 3.40s … say, a thousand shares … you put in roughly $3,000 and make a quick and easy $300–$500. (Not to say it’s easy right away. It takes time to learn the nuances of the patterns.)
— Timothy Sykes (@timothysykes) March 26, 2020
You do that 10 to 15 times over the course of a month or two … and you’ve doubled or tripled your account.
The second pattern I’d focus on is…
First Green Day OTCs
Normally, I’d say first green day OTCs are great. But lately, they’ve been spiking in the last hour. If you hold overnight — which is how I usually play these — they’re gapping down and morning panicking. Recently it’s better to sell into strength during the last hour.
So recognize the new trend. Right now with this pattern I think you do have to use more of your day trades.
By the way, I just completed a new course called the “Volatility Survival Guide.” Look for it in the next few days. (My team is prepping it for release as I write…) It has more information on how to trade during this market volatility.
Here’s the final question for this edition of the update…
“When you alerted your SGLB trade, someone in chat said you were trading an illiquid stock. But it was trading 10 times its average daily volume. Do you pay attention to the average daily volume?
So, this is another thing. When I’m trading breaking news I don’t really care what the volume is.
Sigma Labs, Inc. (NASDAQ: SGLB) had just tweeted five or six minutes before I bought it. Also, it had spiked from the $2s to the $4s near the market open.
Here’s the thing — it wasn’t just a former spiker. Check this out…
- It had already spiked that day.
- It had already come down.
- And then … it had news which came in the form of a tweet.
Take a look at the SGLB chart from March 25:
The arrows on the chart point to the exact moment the company tweeted. Both volume and price spiked. You really have to break things down. You can’t just look at the overall volume.
How did I know about the tweet? The StocksToTrade Twitter scanner. Get StocksToTrade and use it. It’s designed specifically for low-priced stocks.
Back to SGLB…
It traded 800,000 shares on the day. For a $3 stock that’s still over $2 million. You gotta think about the total dollar volume, too. If it’s only 800,000 shares of a stock at 5 cents, we’re not talking about much … we’re talking about $40K worth.
So you gotta think about price times volume, not just the volume itself.
Millionaire Mentor Market Wrap
That’s another edition in the books.
Please #StayHomeStaySafe and help flatten the curve. If we all do the right thing over the next few weeks or months, we’ll get through this.
Again, with low-priced stocks right now it’s almost fire at will. That said, you still need to know the patterns and strategies. So don’t just trade random stocks. If you’re brand new and not sure what to do…
Follow these steps in order:
- Join the 2020 Stock Market Updates group on Facebook. There’s no cost — so join now.
- Check out my new newsletter Supernova Alerts. Watch the free webinar there.
- Subscribe to my YouTube channel. Turn on notifications and watch the new videos I post there almost daily. You’ll find over 1,300 free videos there. Watch at least one per day.
- Read my entire FREE penny stock guide. Take notes.
- Get a copy of “The Complete Penny Stock Course” and read it. Study it. Soak it up like a sponge.
- Decide on your level of commitment to financial freedom when you choose your membership on Profit.ly.
- Keep an eye out for my brand new “Volatility Survival Guide.” I just completed it over the weekend and my team is busy prepping it. More news in the coming days. (BIG ANNOUNCEMENT coming soon about the “Volatility Survival Guide” … and I’m sure you’re gonna love it.)
Take action now. Right now. This is a unique time in history where so many of us are stuck at home. The stock market volatility is creating HUGE opportunities.
Finally, stay safe out there.
What do you think of this edition of the update? Add a #StayHomeStaySafe when you comment to show your commitment. Comment below, I love to hear from all my readers!