While every news outlet couldn’t stop talking about Nvidia’s latest earnings, my sharp-eyed students and I zeroed in on a less obvious target: VCI Global (NASD: VCIG).
A staggering 130% surge in a single day.
Now, I get it. For many, this level of volatility feels like uncharted territory. It might even seem daunting.
But let me let you in on a little secret… trading this was like taking candy from a baby for us.
Trading with the precision and patience of a stock sniper.
Here are five ways you can do it.
Table of Contents
#1 Understand The Driving Forces
Every stock move, big or small, is propelled by a driving force or catalyst, whether it’s earnings announcements, like Nvidia’s, or some industry-shattering news.
For VCIG, it wasn’t just magic or luck.
Before the market open the company announced a visionary collaboration with Microsoft Azure OpenAI.
Let’s unpack that.
VCIG is a company you’ve probably never of heard of prior to yesterday…but now it’s announcing business with Microsoft, one of the largest and most successful companies in the world.
In addition, it’s an AI play, one of the hottest sectors all year.
This is what I call legitimizer news.
Source: StocksToTrade Breaking News
Regardless of where you are in your journey and what strategies you decide to trade…understanding catalysts is essential.
Start paying attention to what stocks are moving and what the catalyst driving them is.
Generally hot themes last for more than a day. If you missed the first opportunity, there’s a chance you can catch a similar play later down the road.
#2 Never Ignore Volume
It will take you a while to grasp what catalysts are market moving and which are duds.
The best way to do it is to pay attention to the trading volume.
For example, a company can issue awesome sounding and super bullish news…but if there’s no volume surge then there’s probably something wrong.
You don’t want to be the first into a catalyst play.
It’s often best to wait for the volume for confirmation.
For example, VCIG typically trades 3 million shares per day.
However, yesterday it traded over 60 million shares by 3 PM ET.
#3 Arm Yourself With The Right Tools
The quicker you get the information and the faster you can process it, the better the chances you catch the spike up.
The best way I know how to catch plays like VCIG is to use a tool like StocksToTrade Breaking News.
It’s curates the news for me in real-time, picking out the most actionable ideas.
This is super helpful for me because I trade off my laptop. I’m not one of those traders who is staring at 4 screens.
And with StocksToTrade Breaking News, I don’t have to hop from one website to the next to get my information.
If you’re relying on an alert service or social media there is a good chance you’ll be slow.
Now, that doesn’t mean you missed the trade entirely. For example, I will sometimes wait after the initial spike and try to dip buy a spiker.
But that is not as easy as buying off the initial headline in my opinion.
#4 Know Your Levels
If you trade penny stocks like me, you’ll notice that some of these companies will pump their stock up via press releases many times throughout the year.
You want to pay attention to the past.
I like looking at daily and weekly charts to get a big picture view. I want to know what happened to a stock the last time it spiked after a press release.
I also want to know the key levels or support and resistance.
This allows me to time my entries and exits better.
#5 Study Every Day
Yesterday’s move in VCIG taught us one thing…
The AI sector is still hot.
And you know what else?
Traders are probably going to be looking for similar headlines today.
I know that sounds simple. But that’s exactly how day traders think.
That means you want to be studying daily so you’re up on the latest catalysts.
How I traded VCIG
After the market opened, VCIG dropped to around $5.65…and that’s where I entered my trade.
It didn’t take long for the stock to spike back up…
I was able to get out at $6.41.
And while those are impressive gains for such a quick trade. I actually underestimated the stock.
It eventually went on to trade above $9.
And that’s something we’re seeing more of.
Moves are getting extended thanks to overagressive shorts.
Thank you $VCIG shorts and frankly all short sellers these days, you guys make the ultimate sacrifice time & again to help us longs enjoy the best squeezes, we TRULY can't thank you enough for your toxic mindset and misguided strategy. This is why I made this video…
— Timothy Sykes (@timothysykes) August 23, 2023
Which is another reason why you want to learn how to trade like a stock sniper.
Taking The Next Step
If VCIG isn’t an indication of the types of opportunities we’re seeing right now…I don’t know what is.
I want to teach how to find trades like this and a lot more.
To help accomplish this, I’ve put together a series of live training workshops.
You got to be in it to win it.
These training classes are absolutely free for you to attend.
Stop making excuses, and start getting involved.