While many traders sat on their hands yesterday morning waiting for the Fed’s interest rate announcement…
StocksToTrade Breaking News Chat subscribers were able to capitalize on gains of 78% and 71% in two small-cap spikers.
In penny stock land mainstream news doesn’t matter…
The only thing that matters is individual stock news. And we have the tools to help you find it — FAST.
And it can mean you’re one of the first traders ready to pounce on a perfect trade opportunity…
So today I’ll highlight the news that moved two big percent gainers yesterday. Plus, I’ll show you how you could’ve traded these Breaking News Chat alerts — including the best entries and exits.
These are the types of gains that can really grow small accounts!
Try everything StocksToTrade has to offer with special pricing…
The News Moving Two Big Percent Gainers
TYDE was trading at $1 when the Breaking News Chat team alerted it. After the alert, it soared to a high of $1.78.
Check out the chart!
It was another Twitter pump … But the company also announced a new property acquisition on Tuesday and the news was still spreading.
BMXI is an OTC stock, so it’s not my style. But check out this move!
Of course my pal Tim Sykes didn’t miss out on this opportunity…
Sykes bought 47,500 shares with only $4,512.50 of capital. He entered at $0.095 and rode his position to $0.1101, making a $692 gain. He made just over 15% on this trade!
Those are the types of gains traders with a small account should look for.
Sykes likes to dip buy, so he bought BMXI on a pullback after it had already spiked. And he sold into a push above the previous intraday high.
I prefer to buy strength, so here’s how I would’ve traded these two gainers…
How to Trade Breaking News Chat Alerts
TYDE started to spike almost immediately after the Breaking News Chat alert. If you were quick enough to buy it as the news broke, it was a good entry as the stock broke its intraday high.
But if you missed that initial entry, TYDE offered traders another chance…
A few minutes later the stock broke through the intraday morning high again. That’s where you could’ve entered as volume picked up.
After a couple of big green candles, TYDE had a volatility halt.
If you don’t sell before the halt, I recommend new traders sell right after a halt. That’s because you never know which direction a stock will go when it reopens. You want to avoid that unnecessary risk.
Selling at the $1.50 half-dollar level would’ve been a safe exit.
Of course, you can be more aggressive and hold if things are working for you. But is it worth it for only another 25-cent move?
Remember, these low-priced stocks don’t have the range of higher-priced stocks that trade in the $5-$20 range. They typically don’t spike by multiple dollars per share.
Now let’s look at the second big gainer of the day. I would’ve traded it differently than Sykes…
Another Hypothetical Penny Stock Trade
Like TYDE, BMXI also spiked immediately after the Breaking News Chat alert.
But this true penny stock was lacking a key indicator — volume.
So the right move with this stock was to wait for high volume to come in … And it picked up just as BMXI broke its intraday high…
You could’ve bought as it broke the high of the day using the low from the previous dip (which was also VWAP — see why that’s important here) as your risk. And sold into the high volume consolidation near 11 cents.
Hopefully, these two hypothetical trade examples show you how you can take advantage of Breaking News Chat alerts. All while other traders are distracted by useless mainstream news.
If you like Tim Sykes’ trading style join his event TONIGHT. He’ll show you why the next 46 days in the market are crucial for traders to grow their accounts.
Have a great day everyone. See you back here tomorrow.
Lead Trainer, StocksToTrade