Is This A Better Way To Trade Volatile Stocks?

By Updated on June 7, 2023

Is This A Better Way To Trade Volatile Stocks? Thumbnail

In one day, the stock TOP catapulted from $6.25 to an astronomical $260.

An unexpected windfall for some but a disaster if you shorted.

And while it’s super risky to short a Supernova like TOP, it’s also not easy playing the long side either.

After all, the stock can sharply sell-off and create a series of stop-loss orders to go off.

The longs get taken out…more shorts pile in…as more shorts get sucked in, the stock reverses and trades higher.

This is one-way longs and shorts can lose trading the same symbol.

That’s why I usually don’t bother trading these unless I get the ideal setup.

Like the one, I had in AITX the other day.

A trade that delivered double-digit returns in less than 24 hours…and one of the main setups I would be trading right now if my goal was to build a small account.

Here’s what you need to know about it…

Why I Love Trading OTC Stocks

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Companies like Charles Schwab, Morgan Stanley, and Goldman Sachs hire armies of analysts to cover stocks like Apple, The Home Depot, and Visa.

You see, when it comes to the top 100 companies in the market, it’s hard to be surprised because these stocks have so much Wall Street coverage.

It makes no sense for me to trade these stocks without an edge.

You see, these firms rarely, if ever, look at penny stocks.


Because most penny stocks are crappy companies.

A lot of them are pumps and dumps.

But that’s why I love trading them.

First off, the level of competition is easier. 

Penny stock promoters are not nearly as sophisticated as a Goldman Sachs banker, and the people who trade penny stocks are not nearly as skilled or knowledgeable as the smart money on Wall Street.

I believe that if you study long enough that you can find a pattern in trading penny stocks.

Like the one, I’m going to show you right now in AITX

Can You Spot The Setup In AITX?

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On June 5th, AITX’s subsidiary, Robotic Assistance Devices, announced it was preparing RADDOG 2LE’s Launch as its introduction on Fox Entertainment’s “Stars on Mars” June 5th, 8 PM ET episode.

Source: AITX.AI

Why I found this compelling:

  • RAD’s RADDOG 2LE would be featured that evening on national television, FOX’s “Stars on Mars” reality show.


  • RAD’s RADDOG 2LE will be formally introduced on June 6th, with a demonstration.


I’m not going to lie, had I read the press release, I would have bought the stock immediately.


Because the company just announced two hypey events in the upcoming future.

In my mind, anyone seeing the news will likely want in.

Especially given how hypey AI stocks are right now.

I saw it as a one-two combo.

In my opinion, this gives me a cushion of sorts. The company is positioning both these events as positive, and that’s likely how traders will perceive them too. This tells me there’s likely to be less selling pressure in the near term.

The morning runup was an awesome one…and it sucks I missed it. But I did see the stock trending higher near the close so I decided to buy some shares ahead of these two catalysts.

And that’s what I did…

Getting in at $0.119

The next day the company released this press release:

AITX’s Subsidiary, Robotic Assistance Devices, Unleashes RADDOG™ 2LE, the Robotic Dog for Law Enforcement Applications

While it wasn’t a monster catalyst, it spiked the stock enough for me to get out, taking profits at $0.0135…good for a move of 13.5%.



Clearly, this company is trying to pump its stock.

On Wednesday, it issued another press release, this one:

AITX’s Subsidiary, Robotic Assistance Devices, Receives Multiple ROSA Orders from EPIC Security Works

For me to trade this again, I’ll need to see more compelling press releases and interest in the form of volume. I want to see trading volume significantly above its average.

Final Note

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Sometimes companies will tell us beforehand that they will be pumping their stock. I love these setups because they give you a cushion and favorable risk vs. reward.

Remember, these are quick trades for me. I don’t look at these companies as investments.

And while I love this setup…

It doesn’t compare to this one. 

In fact, tomorrow, I’ll likely be placing a trade utilizing it.

===> Find out how to get it here


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Comments (1)
Author imageTimothy Sykes
Hey Everyone,

As many of you already know I grew up in a middle class family and didn't have many luxuries. But through trading I was able to change my circumstances --not just for me -- but for my parents as well. I now want to help you and thousands of other people from all around the world achieve similar results!

Which is why I've launched my Trading Challenge. I’m extremely determined to create a millionaire trader out of one my students and hopefully it will be you.

So when you get a chance make sure you check it out.

PS: Don’t forget to check out my 30 Day Bootcamp, it will teach you everything you need to know about trading.

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