Wow, what a crazy few days it has been. The recent CPI data came in hotter than expected yesterday, causing the futures to plunge early before the market opened.
Despite the higher-than-expected data, the markets rebounded strongly throughout the day making many traders wonder…
Is this bounce we all were waiting for?
Let’s take a look at the SPDR S&P 500 ETF Trust…
To tell you the truth, I am not thinking too much about it.
But I can tell you this, I am still sticking to my bread and butter that has brought me success over the last 20 years.
You see, the other day I mentioned a few stocks I was closely watching…
And in fact, I capitalized on one of them today!
I don’t want you to be guessing where the bottom is, or where to buy.
I want you to be prepared and learn how to spot these great opportunities in this volatile market.
Table of Contents
Market Volatility
Market volatility can have a huge impact on your potential profits and losses…
If there is market volatility it means more volatile stocks are likely to move.
This is something I love to take advantage of and this is why I love penny stocks!
But what comes along with market volatility is increased risk…
So it’s important for all of you to understand how market volatility can impact any trade at any given time.
With penny stocks, I love the volatility because it can give you those swings that you are looking for…
Which is perfect for my dip-buying pattern!
Whenever I dip-buy I am hoping for that 5-10% gain, but I always stick to my #1 rule if the stock doesn’t bounce.
It is important to practice and study as much as possible because even I can be a little rusty when it comes to trades.
So why am I not worried about the recent CPI data and how do I plan on using this volatility to my advantage…
Let’s find out!
Why I Am Not Worried
Just because you are noticing massive swings in the overall market, it doesn’t mean you need to be worried.
With penny stocks, we are used to seeing this type of swing in stocks, which is what we want.
If a penny stock isn’t volatile, it doesn’t fit in with my trading strategy.
Despite all of the doom and gloom news in the market, I am not worried about what the Fed’s next steps are…
More Breaking News
- Rigetti’s Quantum Progress Draws Global Eyes
- UWM Holdings Faces Rough Waters Following Market Shifts and Insider Sales
- Axon Enterprise Surpasses Expectations, Showcasing Strong Growth and Innovative Strategies
- Clear Secure Inc. Collaborates with Mount Sinai Health, Marks New Era in Healthcare Innovation
All I know is that I am focusing on identifying stocks that are moving and what trading opportunities there are.
Today’s A+ Pattern
Earlier in the week, I mentioned that I was closely watching a few key stocks…
And the one that I really had a close eye on was…
Meta Materials Inc. (OTC: MMTLP)
MMTLP has had a significant run-up over the last several days, did you catch it?
This is why it’s so important to study the market and have all of the right tools in place to help you become successful!
My morning pattern was dead on and the stock bounced 40% off of its lows…
But I took profits WAYYY too soon.
Maybe I am a little rusty, but I am not disappointed with my trade.
I always like to go back and look at how the trade played out and how I can improve it for next time…
So let’s take a look at the entry and exit points with MMTLP.
In the chart above you can see where I dip-bought off of a massive panic from this morning.
With a stock that has had a massive move in price, they are bound to come crashing back to earth…
And we saw a clear example of that and the stock continued to uptrend from there.
I was able to make 7.93% on this trade, so I am not upset as I always look for a 5-10% gain…
It is important to understand that it’s not all about hitting a home run…
It’s all about finding those right trades and small profits will continue to add up over time.
Final Thoughts
Slow and steady wins the race…
This isn’t a sprint to the finish line as to who can make the most money the quickest.
It’s all about perfecting and recognizing these plays that give you those opportunities to be profitable.
The overall market continues to make many experts ponder if this was truly the bottom…
But I can tell you that volatility isn’t anything new to me…
And I am still finding ways to capitalize on these stocks.
You may not find a trade every day, but it shouldn’t stop you from scanning the market for early market movers!
So don’t make those risky trades, and wait to seize those perfect opportunities!
Enjoy the weekend and study up!
Tim
P.S – Tim Bohen has just discovered a play that might make peak GameStop, Bed Bath & Beyond, and AMC look like peanuts. Click here for all the details.
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