Happy Monday, everyone!
Friday morning in my Premarket Prep, I discussed what I thought was going to be the “chat pump du jour” stock, Minim Inc. (NASDAQ: MINM)…
Alas, I was wrong, and that happens….It spiked premarket, made a half-hearted pop back up and petered out after that.
That’s what being a day trader is all about, being wrong, admitting it, learning from it, and moving on.
To learn more about day trading and what it requires financially and psychologically, read my article.
https://stockstotrade.com/day-trading-rules/
I thought MINM was going to behave the same way Zapp Electric Vehicles Group Ltd. (NASDAQ: ZAPP) did on Thursday.
Take a look at Thursday’s ZAPP chart:
ZAPP 5-Day, 5-Minute Candle Chart; SteadyTrade
This was a huge winner and here at StocksToTrade, we were able to capture it just in time before it took off.
How did we do that?
Two of our proprietary trading tools made the call.
Oracle, our algorithmic trading system sent us a green buy signal at $2.11 per share. When ZAPP peaked at $3.85, the stock had returned 82.46%.
I say this all the time but I cannot trade without Oracle. It’s my secret weapon that scans the entire stock market every morning, applies its algorithm to identify price patterns and then sends us a signal, bullish or bearish, for a long or short entry price.
It finds winners, every single day.
If you want access to the tool that I can’t trade without, learn more about Oracle here.
Another proprietary tool that we have here at STT was particularly useful on Thursday’s ZAPP play. In fact, it alerted us even before the stock hit the Oracle entry price, so we reaped an even bigger return.
Last Thursday, Zapp Electric Vehicles Group Ltd. (NASDAQ: ZAPP) moved big time on the company’s earnings win and increased business outlook, which were announced that morning.
This is what we call a stock catalyst.
A catalyst often involves news that directly or indirectly impacts a company, such as earnings, analyst upgrades and downgrades, world events, a new business combination, a new product launch, government legislation….The list goes on and on.
Table of Contents
Examples of Stock Catalysts
World Events
News like wars, pandemics (hello, COVID-19), government changes, and natural disasters can be powerful stock catalysts.
New Product Launches
New product launches and contracts can move a stock just on the expectation that it will be successful and revenues will increase.
Government Legislation
Look what happened with weed stocks in April of this year when the Biden administration announced it was moving to reclassify marijuana and ease restrictions.
Cannabis Index Chart; New Cannabis Ventures
Analyst Upgrades and Downgrades
Equity analysts at large firms make ‘buy’ and ‘sell’ recommendations. Well-known analysts that are respected in their industry can have a huge impact on a stock’s price once they publish an upgrade or downgrade.
New Business Combinations
When a company announces a new partnership, product collaboration, acquisition, or merger with another firm, depending on the size and reputation of the partner, its stock can really move.
This is what happened with Beamr Imaging Ltd. (NASDAQ: BMR) when it announced a product launch in collaboration with Oracle and NVIDIA.
BMR Chart; SteadyTrade
How to Identify Stock Catalysts
Finding stock catalysts depends on your expertise, account size, and available research time…
Unless you have access to the system we use…
This is the proprietary tool that alerted us to news on ZAPP right away so we could get in and make a massive profit.
It’s called Breaking News Chat.
And it’s not just any typical chatroom. It’s led by a group of Wall Street veterans, each with 20+ years of trading experience. Thanks to them, BNC is able to get news to its subscribers many times before anyone else hears about it.
The key to getting in on a hot stock is to get in early and BNC gets you the news fast so you can act fast.
Here’s what happened with ZAPP after BNC alerted us to its positive earnings announcement.
ZAPP BN Chart
In addition to ZAPP, BNC sent us all of these alerts just last week:
Reliance Global Group Inc. (NASDAQ: RELI): $RELI Reliance Global Group Provides Update on Pending Spetner Acquisition.
RELI BN Chart
And this one…
Mustang Bio Inc. (NASDAQ: MBIO): $MBIO Mustang Bio Announces Favorable Efficacy and Safety Data from Complete Waldenstrom Macroglobulinemia Cohort of Phase 1/2 Clinical Trial of MB-106, CD20-Targeted Autologous CAR-T Therapy.
MBIO BN Chart
And this one…
MGO Global Inc. (NASDAQ: MGOL): $MGOL Heidmar, Inc., a Global Leader in Crude Oil and Refined Petroleum Marine Transportation Services, Agrees to Business Combination with Nasdaq-Listed MGO Global Inc.<Breaking_News> $MGOL spike .45 to .57 Agrees to Business Combination with Nasdaq-Listed MGO Global Inc.
MGOL BN Chart
I have tons of examples of massive winners like these that ran on news that BNC alerted us to.
Stock catalysts are around every corner and they create huge opportunities for profit…
But you need to have the right tools to hunt them down.
This is THE tool.
Subscribe today to start capitalizing on the breaking news that makes stocks like ZAPP soar!
Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade