Most newbies get nervous when they see the market selling off…
But despite seeing the major indexes fall, that doesn’t mean you can’t profit.
I’m not talking about shorting the market…
I’m simply talking about focusing on a strategy that has helped me time and time again, despite how the overall market is performing.
Right now we’re being flooded with opportunities…
And yesterday, I was able to nail my early morning trade simply by doing this…
What To Do In A Market Sell-Off
This is the time of the year when we usually see the overall market underperform.
It shouldn’t be anything new to most of you, but if you’re new to trading, there’s one important thing I want you to remember…
Don’t hold and hope for these plays to go higher.
AWESOME $DIA $SPY $QQQ $AAPL $NVDA close, let's get this #StockMarket crash goinggg…perfect time of the year as history shows over & over & over again! How'd you finish today, did you stay safe? Or did you #HODL & lose big like too many gamblers who don't study history enough
— Timothy Sykes (@timothysykes) September 20, 2023
Right now we’re seeing some of the crappiest stocks that are spiking for no reason…
And we have these over-aggressive short sellers to thank for that!
Just because the overall market is selling off doesn’t mean you should just sit back and wait…
Instead, you need to be patient and only focus on those plays that you’d feel guilty about missing.
Yesterday we saw all three major indexes slide yesterday and most newbies would think that means you lost money…
But that’s far from the truth.
Despite the overall market sell-off, there were plenty of opportunities with these small-cap stocks!
Time and time again I keep reminding everyone about what we’re seeing in this overall market…
And it’s these crappy stocks are spiking early in the morning almost every single day…
And that’s what led me to my most recent trade.
Trade Quick And Small
Over the last several days, MSP Recovery, Inc. (NASDAQ: LIFW) keeps getting squeezed higher and higher…
Take a look…
Source: StocksToTrade
There is nothing great about this company…
The long-term chart is disgusting…
It will most likely go bust…
And despite all of the negative things you can say about this chart, it offered some amazing opportunities thanks to these over-aggressive short sellers.
LIFW went from $0.055 to $0.30 in just a few days…
That’s over a 400% move!
Now, I’m not saying to chase it higher, or to buy and hold onto it…
LIFW will eventually go back to where it started, and the short sellers will be right…
But time and time again I’m reminding everyone that they need to be focused on these pre-market runners.
This is where the opportunities are!
We’re seeing those early morning squeezes higher, and most of them do fade as the day goes on…
But then there are times when the short sellers think they won, and the stock ends up spiking higher again at the end of the day.
I don’t care what the stock does a week from now…
I just care about what’s happening at this very moment.
Yesterday morning as I was looking for some of the biggest premarket runners, thats when I saw LIFW starting to ramp up…
So I followed my usual process before I dive into any trade, and that’s to go back and look at multiple charts to get a better idea of where some key resistance and support areas may be.
Take a look…
Source: StocksToTrade
In the chart above, you can see LIFW spiking higher over the last few days and it tried to break out from its previous high just a few days ago…
When I saw this, I decided to take a small position on this runner that was going off early in the morning to see how far it could go.
Source: StocksToTrade
Within just a few minutes after the opening bell rang, I saw this breakout, and after seeing how high the volume was…
And how over-aggressive these shorts are, I had to give it a shot.
If it was unable to extend its gains and fell below that breakout level, I knew I would have to cut my losses quickly…
I’m not looking to hold and hope.
This is what trading is all about, you never truly know what the stock will do…
But I felt confident enough based on my analysis and what we’re seeing in this market that it could continue to run higher.
I bought LIFW at $0.264 and exited at $0.292 for a 10.61% gain! (Risked $6,732).
These are the types of moves you need to be prepared for in the morning hours…
Because time and time again we’re seeing these short squeezes happen.
You’re not going to make record profits with these plays, but if you’re able to find these solid opportunities and know how to trade them…
It can build up your small trading account faster than you think…
And it’s important you remember to follow my #1 rule.
Trading is all about being prepared, and if you want to know how to spot some of the best plays every single day…
You need to be sure to tune into our FREE trading sessions.
Keep practicing and studying, and I’ll be sure to alert you in chat based on what I’m seeing in the market.
Stay safe!
-Tim
Leave a reply