The hot market keeps going — and I’m not the only one trading breakouts in this insanity.
Of course, the market will continue to change and my students and I will continue to adapt. It’s all part of a cycle that you need to be prepared for as a trader.
This is one of the greatest markets I’ve seen in a long time. I don’t see it slowing down anytime soon.
The pandemic still poses a threat to the economy … There’s a number of social movements throughout America … So the penny stock market still has huge potential…
That’s why I want to dedicate this post to the patterns that work for me, as well as some highlights from Trading Challenge students. They’re prepared for this madness because they study their butts off, year after year.
So, let’s dig into trading breakouts, my favorite patterns, and some student highlights.
(*Please note: My results, along with the results of my top students are far from typical. Individual results will vary. Most traders lose money. My top students and I have the benefit of many years of hard work and dedication under our belts. Trading is inherently risky. Do your due diligence and never risk more than you can afford to lose.)
Table of Contents
- 1 Current Market Conditions: Trading Breakouts
- 2 Morning Panic
- 3 Trading Breakouts: Student Highlights
- 4 Trading Breakouts: Conclusion
Current Market Conditions: Trading Breakouts
In fact, the shorts are often why penny stocks break out so much … And aggressive short sellers can get squeezed hard. Too many newbies short anything they think it’s up too much. The problem is that no one knows how high these can go.
There are so many long opportunities in this market — I’m taking advantage of them whenever possible.
Recent Trading Breakouts
I’ve been trading breakouts — mainly caused by short squeezes — recently. It’s been awesome. I want to show you a few of my favorite plays — most of which I underestimated. That’s OK.
What’s great about the way my students and I trade — we’re not swinging for home runs. Instead, we aim for singles and consistency. Over time they add up. I’ve made over $5.5 million in trading profits.*
And as you grow as a trader, you can potentially scale up. You can apply more knowledge and experience to your trades.
Now let’s look at a few examples of trading breakouts from June.
Genius Brands International, Inc. (NASDAQ: GNUS)
The best part? As these daily breakouts keep going, they provide more opportunities. There’s no need to hold and hope. I just play them as they break out every day.
I was actually trading this stock when it was under $1 per share during its breakout back in May. And it continued to shock me as it squeezed more shorts every day.
eMagin Corporation (NYSE: EMAN)
EMAN was another great breakout ticker that just kept going. Every week it seemed to have consolidation periods before the next inevitable breakout.
Again, I don’t buy before the breakout and hope. I wait for the breakout to happen, then play my patterns. I’ll get into my favorite patterns in a bit. But it’s important that you understand to not hold and hope.
That’s why I trade these companies. Usually, I’m in and out of trades in a matter of minutes. Let’s talk about one of my favorite patterns ever — the morning panic dip buy…
I love having truly dedicated students learning the patterns I trade and teach. It’s important to me that I can help students learn slowly and consistently. Including the morning panic pattern.
Trading breakouts is a regular thing in this crazy market.
Those who have been in the stock for days or weeks from a low price want to take profits. The selling at the open often creates a considerable price drop.
This can be a great place to buy. Sometimes, the stock spikes at the open, then has a big pullback. This can be another good place to get in. But it may not be as much of a panic as a regular dip buy.
In my experience, the morning panic has a massive drop.
You can learn more about chart patterns in “The Complete Penny Stock Course.” My student Jamil organized all my lessons into one resource. This book covers so many basics. Get it, read it, and keep it on hand.
Let’s look at some of my recent morning panic trades…
Morning Panic Examples
June was full of morning panics. I had trades with profits of $2,000 and others where I made over $10,000.* It all depends on the size of the panic and how fast they bounce back.
Sometimes I’m wrong on morning panics — it’s part of the game. Anyone who tells you they don’t take losses in the market is a liar.
But I constantly work to improve. Even after 20 years of trading. And I have hundreds of morning panic video lessons available to students on Profit.ly. My top students study all these lessons over and over to learn how to spot these patterns.
Now check out some of the best morning panics from June…
Innovation Pharmaceuticals (OTCQB: IPIX)
Compare the next few trades and try to find the similarities…
Vystar Corporation (OTCPK: VYST)
Digital Locations, Inc. (OTCPK: DLOC)
This is one of the craziest OTC runners I’ve seen in a long time. What I don’t show you on the chart is the day before. In the matter of one day — the day before — it went from $0.0057 to 19 cents per share.
It was over a move of over 3,000% in about 30 minutes. I haven’t seen these kinds of OTC moves in a long time, but I’m excited they’re popping up again. Another sign of this INSANE market.
Again, I can find the bottom of the move because I’ve studied these patterns for 20+ years. And I teach my students through thousands of video lessons.
Now the key question … did you notice the pattern in these trades?
The answer: I aimed for singles on every trade. Sometimes these plays continue to run. But some completely fail. I’d rather consistently hit singles than swing for home runs and miss.
Trading Breakouts: Student Highlights
My students report killing it in June, too, and they deserve some recognition. They’ve worked their butts off for years. They’re putting their knowledge to use in this wild market.
These two are living proof that studying, discipline, and dedication really matter.
Matt’s primarily a long-biased trader like me. While he’s trading listed stocks pretty well now, he specializes in trading breakouts in OTCs.
One company Matt traded in June is Transportation and Logistics Systems, Inc. (OTCPK: TLSS). Check it out:
Matt’s on track to have a killer 2020 if he stays disciplined and follows my rules.
Jack’s primarily short biased. I like to mess around with Jack for being a short seller in a market where everything seems to be a long … but he’s still killing it!
One of Jack’s favorite patterns is the OTC first red day. It’s popped up a lot of recently. Remember, when a stock runs 100% or more, it’s likely to come back down. And when they run hard, they can come down just as hard.
One example from Jack’s first red day trade is on Indivior PLC (OTCPK: INVVY). It was a massive runner in mid-June. Jack caught the first red day after preparing for its crash. Here’s the chart:
I’m so proud Matt, Jack, and all my students nailing plays in this market.
Trading Breakouts: Conclusion
This market is full of opportunity. With so much economic uncertainty in the U.S., these market conditions could continue … I hope they do.
I also hope you learn more about trading breakouts. My favorite pattern actually happens after the breakout and can be a great way to take advantage of a large price drop.
My students like Matt and Jack might not play the same patterns as me. But they’ve studied all my lessons over the years. They’ve worked and studied for years to become self-sufficient.
I hope these traders inspire you to study every day.
I’m curious … What inspires you to be successful in the stock market? Let me know in the comments below!