Today I’m doing something a little different…
Because I always say, my number one watchlist stock doesn’t have to be yours. And we don’t always have to agree…
There’s more than one way to make money in the market. You just have to find a setup and strategy that works best for you.
So while I wouldn’t have traded yesterday’s massive Breaking News Chat winner — you could’ve made over 500% riding the momentum.
And when a stock is TRADING LESS THAN A PENNY … you don’t need a large account to take advantage of these opportunities.
You just need to know the ‘why’ behind the move and have a plan.
So if you think these types of gains are impossible for your small account, see how much capital Tim Sykes used to trade this runner and make 20%. Learn from the master of OTCs below…
Watch this video to learn how Jack Kellogg found his edge with OTC stocks.
The ‘Why’ Behind a 568% Gain
Yesterday we saw the first big OTC runner we’ve had in a long time. In fact, there were multiple true penny stock runners…
And there was one way to catch them all.
StocksToTrade’s Breaking News Chat alerted subscribers to the news behind these movers right near the market open.
That means you had plenty of time and multiple opportunities to get in on the moves. Let’s look at the biggest runner first…
Clubhouse Media Group, Inc. (OTCPK: CMGR)
If you follow Tim Sykes, you know he loves Breaking News Chat alerts. And he didn’t miss his chance to capitalize on CMGR.
He bought it when it was grinding to new highs after the Breaking News Chat team alerted the stock’s spike and premarket press release. The PR hyped the company’s promo deal with NFL star, Rob Gronkowski.
Sykes made $594 on his trade. And while that might sound like small profits, that’s a 30% gain! And he wasn’t done yet…
When CNGR kept climbing higher and proved it could spike, Sykes dip bought when it finally pulled back from its highs. His goal was a 10%-20% bounce. And he made $830 or 15% on his second trade.
Check out the chart…
CMGR chart: 1-day, 1-minute candle — courtesy of StocksToTrade.com
So while Sykes’ gains might look small. And he only caught two tiny pieces of the overall move. This just proves the power of penny stocks…
Tim stuck to his morning spike pattern and dip buy strategy and he walked away with over $1,400 in profits for the day — from only two trades!
Those are meaningful gains for a small account. They can wipe out multiple small losses and turn around a bad day or even a bad week.
Think those gains are impossible for your small account? They’re not…
Sykes only used $1,980 in capital for his first trade. On his second trade, the stock was trading at a higher price and he used $5,530 of capital.
Another True Penny Stock Spiker
The next true penny stock runner was Exela Technologies, Inc. (NASDAQ: XELA). We talked about his one in Pre-Market Prep and the SteadyTrade Team. And like I said, I don’t like true penny stocks…
But if trading them works for you, by all means, trade them. The Breaking News Chat team alerted the company’s PR in premarket. And it worked out great for traders who got the news alerts early.
XELA chart: 1-day, 1-minute candle — courtesy of StocksToTrade.com
And XELA had the dip and rip I said to watch for…
It checked the boxes. But it didn’t have enough momentum behind it.
That’s why I prefer to wait until day two. Because for me, multi-day runners have been working the best in this market. And they have the potential for more explosive moves.
CMGR and XELA show you how penny stock news create a buzz that can send stocks higher than you ever thought possible…
But whether you trade OTCs, true penny stocks, or higher-priced listed stocks — the rules stay the same.
We trade the news and momentum, we never believe it. Penny stock trading isn’t a buy-and-hold strategy.
Get your news fast and react to price action. And stick to our patterns.
Have a great day every one. I’ll see you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade