Stock Trading
Oct. 31, 201912 min read

Bohen’s Take: Spooky Halloween Trading, Monster Low-Float Runners, & Charitable Traders

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Written by Tim Bohen

The monster low-float runners are on the loose… 

It’s that time again, folks. Welcome to a special Halloween edition of Bohen’s Take…

Read on to find out how I’m mentally scarring the StocksToTrade team with my ultra-creepy Halloween costume…

You’ll also learn about a crafty way to have an amazing time, raise money for charity, all while hanging out with traders and improving your market skills…

I’ll also tell you about the new superstar trader who’s joining the StocksToTrade Pro team…

Plus, I’ll break down the killer penny stock setup that quite possibly started a wave of low-float runners…

Let’s get right into it!

What’s the Haps?

Happy Halloween, gang!

I hope you’re all having fun scaring your family, attending parties, or taking the kids trick or treating…

I don’t always like dressing up for Halloween, but this year I got myself a pretty hilarious and creepy bull head. The mouth moves along as I talk, making me look like I’m participating in a ritual. Here’s a screenshot of me creeping out the StocksToTrade staff while talking about my book recommendation:

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Image courtesy of Halloween prankster Tim Bohen

So, what have I been up to lately?

First, I got the opportunity to attend another awesome trading conference…

This time, it was the Traders4ACause annual conference held in Las Vegas … I’ve been a speaker at the Traders4ACause events from back when they started. I think it’s an awesome organization.

Not only do you get to hang out, chat trading, and hear talks from big names in the industry, but you’re also helping raise funds for some great charities…

As expected, this event went off with a bang. I had a ball. In fact, I got to open the stage on the first day … The food was incredible. I probably ate about $500 worth of meat at the buffet … no $BYND faux meat for this guy.

I have to give a big shout out to Nate and the whole gang who organized the event. They’re great friends of mine, and I appreciate them inviting me back. I’m really happy to see the trading community coming together to raise money for such great causes. I heard they passed the million-dollar mark this year — amazing!

I always say this about conferences, and I’ll say it again: If you don’t attend them, you’re really missing out … Trading can be such a lonely business. Most of us are alone in front of our screens all day. So it’s great to be able to get out there and meet other traders face to face.

For the price of admission and a plane ticket, you can hit up one of these events. It’s a chance to have a great time, network with other traders, and learn a ton. What more could you want?

low float runners

Via Shutterstock (ID: 534465157)

Trade of the Week

I’ll tell you, the thing with low-cap, low-float stocks is that they tend to run in packs…

By that, I mean that when you get one big runner, you generally see a whole bunch of other stocks start to run soon after … That was definitely the case earlier this month. It was pretty rough in late September and early October. There just wasn’t much happening in the small-cap space, not much follow-through. But that all changed with the SES run.

Synthesis Energy Systems Inc. (Nasdaq: SES) is a tiny energy company based in Houston. It’s had a pretty horrible past decade, with its stock price collapsing over 90% in that time…

low float runner

Synthesis Energy Systems Inc. (NASDAQ: SES) long-term chart (Source: StocksToTrade)

On October 11, the company announced it was acquiring an Australian energy company. That announcement sent the stock flying. That was a Friday, and we saw the stock gap up to open at about $3.40 from a previous close of around $1.80.

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Synthesis Energy Systems Inc. (Nasdaq: SES) with news spike (Source: StocksToTrade)

The stock then went on to rocket up for the day, approaching a high around $5.60 before closing the session near $5.30. Those are some solid one-day gains. Traders who were quick enough to see the news catalyst and jump on board the stock in the morning were likely more than a little happy.

But that’s not the end of the story…

What’s great about many of these low-float runners is they often have multi-day moves. And that’s exactly what we saw with SES.

On October 14, the following Monday, the stock continued its rapid rise, gapping up on the open to $10.18, before pulling back to $7.80. The stock price went nuts after that. We watched it quickly blast up to a high of over $26 intraday, before ending the session at around $19.50.

The moral of the story? You don’t need to always be on board for the first-day moves. Sometimes the best moves can come on the second or third days…

So maybe that Friday night, you ran your scans and saw the move in SES … Maybe you thought that if this stock saw a pullback on Monday and then broke out above the previous high, you’d trade the stock.

That move had the potential for more than $10 per share in a single session — all from a pretty simple setup. These are the sort of simple yet effective setups we look for each and every trading day in StocksToTrade Pro. Ready to sharpen your trading skills? Join us!

low float runners

Via Shutterstock (ID: 278895623)

StocksToTrade Feature of the Week

I’m not sure if I should call a person a feature — but I do know I’m thrilled about this announcement. This edition’s feature of the week is an awesome trader by the name of Huddie…

Huddie, aka Michael Hudson, is now an instructor on the StocksToTrade Pro team!

Huddie’s a young trader who made six figures trading penny stocks while still in college. I can see plenty of great things in his future. He’s been on the SteadyTrade podcast before. I’ve always admired his work ethic and mindset. And he’s one of the nicest guys you’ll ever meet in the trading community.

He’s bringing a fresh perspective to the StocksToTrade Pro team … He’s somewhat of a short-biased trader, in contrast to my being long-biased. I think it’s great to give our members some greater diversity in the trading styles we showcase.

So, I’d like to extend a big warm welcome to Huddie. He’s an awesome addition to the StocksToTrade Pro team! Come and learn from Huddie and me every day — join us at StocksToTrade Pro today!

StocksToTrade Pro is our elite trader education community. You can see what I follow, hear my market views, and watch as I share my trading screens each trading day. Plus, you can attend regular trading webinars where we share cutting-edge trading techniques to help you develop as quickly as possible. And you can interact with our members in the trader chat room.

If you’re looking for the best way to improve your trading skills, I genuinely think this is the best community. We’d love to welcome you to our group!

What I’m Reading

I’ve been a total market addict since I was in elementary school. So I can very proudly say that I’ve read hundreds of trading books. And if I haven’t read a trading book, I’ve probably at least heard about it…

No doubt I love to read, so I’m thrilled that we just announced the SteadyTrade book club (check out the full episode here).

Stephen Johnson, Kim Ann Curtin, and I all announced our top picks … and I was absolutely shocked that I’d never heard of Kim’s number-one pick.

The book? “The Hour Between Dog and Wolf” by John Coates. Coates once ran a derivatives trading desk before becoming a world-class neuroscientist and studying the effects of stress and risk-taking on people such as traders. The book covers topics such as the effect that risk-taking and stress can have on our physiology and body chemistry. It talks about studies that measured traders’ hormone levels — and has some pretty interesting discoveries.

From what I’ve read of the book so far, it’s really fascinating. Any time Kim recommends a book, I always take note. And I’d advise you to do the same. Kim is smart as hell, loves to read, and gives spot-on advice.

That’s what I’m reading at the moment. I’ll keep you updated when I finish the book. And you can tell us what you think by joining the SteadyTrade book club. This pick is scheduled for December. We want to hear from you!

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© 2016

Bohen’s Conclusion

That’s it for this edition…

I hope you all take a little time away from the trading screens to have a spooky and fun Halloween.

I also hope you put some time into building a solid trading network. I really can’t put into words how positive of an impact it can be to have a support network. It’s been tremendous in my own trading career. Trading can be a lonely business — but it doesn’t have to be. There are plenty of ways to build your trader network.

One way is to attend a seminar such as the Trader & Investor Summit (order this year’s DVD here) or Traders4ACause, where you can network with people who love trading just as much as you…

It’s not just about being around people who you vibe with … It’s also an opportunity to learn and grow in the markets. Just like we saw with SES and other low-float runners this month. Being in a trading community can help you expand your trading knowledge.

Join an online community where you can chat with mentors and other traders. That’s exactly what StocksToTrade Pro provides. It’s our ultra-supportive, elite-level trader education community. Join the StocksToTrade Pro community today!

[Please note that Huddie’s results are not typical. He has exceptional knowledge and skills that he’s developed with time and dedication. Most traders lose money. Trading is risky. Do your due diligence and never risk more than you can afford.]

Where are you finding action in the markets these days and how are you adjusting your strategies? Tell me in the comments below … Happy Halloween! 🎃