I made a mistake yesterday. And I’m man enough to own up to it…
This can be a lesson for many of you about adapting to the market.
So if you’re struggling to find the best trades right now.
Leading to loss after loss from trading the wrong stocks…
Let me share my mistakes and lessons with you so you can start to turn your trading around.
Trading is a never-ending path of improvement and it starts with recognizing your mistakes and then adjusting your sails to the winds in the market…
What’s Working In The Market?
Yesterday my number one watch was C4 Therapeutics, Inc. (NASDAQ: CCCC). Here’s what I liked about it…
- It’s biotech with cancer news.
- A history of multi-day runs.
- It’s a beaten-down stock having its first green day.
- It was trading a decent amount of volume.
But there was one thing I didn’t love about it. And that ended up being the reason that it failed…
CCCC chart: 1-day, 5-minute candle — courtesy of StocksToTrade.com
It has a float of 40+ million shares.
But I still went with it …. Then I spent an hour complaining about the float and watching it do nothing.
So what was my other option?
If I checked most of the boxes was it worthy of being my number one? Yes, but there’s also something else to keep in mind when narrowing down your watchlist…
What’s working in the market?
I was focused on a higher float stock when I could’ve been focused on what’s been working in the market for the last month or so…
True Penny Stocks
By the end of my morning webinar we had another big gainer with the best-looking setup…
It was a true penny stock iMedia Brands, Inc. (NASDAQ: IMBI) that was set up for a dip and rip and it was hitting Oracle’s signal.
And that’s when everything became clear … True penny stocks are what’s been working.
That was evident on Monday when Canopy Growth Corporation (NASDAQ: CGC) and Fresh Vine Wine, Inc. (AMEX: VINE) were two of the best plays, and both are true penny stocks.
CGC gained 63% on Monday…
CGC chart: 1-day, 5-minute candle — courtesy of StocksToTrade.com
And VINE gained a whopping 262%!
VINE chart: 1-day, 5-minute candle — courtesy of StocksToTrade.com
Then yesterday we had another big true penny stock runner…
Inovio Pharmaceuticals, Inc. (NASDAQ: INO) started spiking right at the open after doing nothing during premarket…
And it gained 37%.
INO chart: 1-day, 5-minute candle — courtesy of StocksToTrade.com
So what are the lessons here?
You’re never done learning as a trader. It’s a constant process of growth.
Instead of being dialed in on a true penny stock that’s trading insane volume…
My mistake was waiting all morning for a high float stock to make a move.
Now I won’t make that mistake again.
If I have to choose between a large float stock and a true penny stock trading high volume this morning — I’m going to go with the true penny stock.
And in the future, I’m going to focus on the hottest niche and sector in the market. Whatever it is at the time…
Because the market constantly changes. And you have to adapt…
Sometimes it takes making a mistake for you to realize it. But you can always pivot and adjust your approach at any time.
Just make sure you track what you’re trading so you can see your results.
If you want to be guided through the market each week — join StocksToTrade Advisory. I give you three Market Update videos per week, watchlists, reports, and more!
Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade