Yesterday, the markets bounced as traders tried to guess bottoms and scoop up deals in tech companies and beaten-down stocks…
But like I touched on yesterday — that can be a guessing game.
I don’t think we’re close to capitulation yet…
And with inflation numbers due out today, it could get worse before it gets better.
As a new trader, it can be hard to know what to do…
Should you dip buy big-name stocks and hope for a bounce? Or stay away from trading altogether until the bloodbath ends?
I don’t think you need to do either.
Even though large-cap traders are having a tough go, there are still plenty of plays in penny stock land…
Get my top day trading setups for 2022 here!
How to Avoid the Market Carnage
The reason SteadyTrade Team members and I still find hot trades is because we focus on plays where we are in and out quickly.
We’re not holding for the long term, or even for a few days.
With all the uncertainty in the market, swing trading doesn’t make sense right now.
It makes more sense to day trade…
Because when you’re in and out of a trade FAST, you can avoid becoming a victim to massive market fluctuations.
Just look at a couple of the plays we were watching in the SteadyTrade Team yesterday…
How to Pocket Gains While Others Lose
Cyngn Inc. (NASDAQ: CYN) has held up for over a month. Yesterday, in the morning SteadyTrade Team webinar, I told everyone to watch CYN for a break above the previous day’s high around $4.60.
It was a solid trade and a chance to make roughly 40 cents per share…
CYN chart: 2-day, 2-minute candle — courtesy of StocksToTrade.com
CYN even closed near its daily high. So you can bet I’ll be watching it tomorrow.
Vroom, Inc. (NASDAQ: VRM) was another stock on watch yesterday. The stock spiked after hours on Monday after the company announced earnings and a business realignment plan.
In Pre-Market Prep, I said to watch VRM for a dip and rip…
Right at the open, the stock spiked through the $1.75 premarket high and topped out at $1.93. That was another chance to make almost 20 cents per share.
But as you can see from the chart, you had to be quick!
VRM chart: 1-day, 1-minute candle — courtesy of StocksToTrade.com
While this market might not be the same as in 2020 — when stocks would spike 100%+ and keep going — there are still plenty of trade opportunities.
You just have to adapt.
This market favors the quick, nimble, and disciplined trader.
So when you see your bread and butter pattern — take your shot. But get in and out quickly…
Your goal is to take your profits (or if you have to, a small loss) — then move on.
If you need help finding the best day trades, laying out a trading plan, and managing expectations — join me every morning here.
Let’s get 1% better every day, together!
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
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