Trader Tips
Jun. 23, 20255 min read

How I Turn Panic into Powerful Gains

Tim BohenAvatar
Written by Tim Bohen Reviewed by Ellis Hobbs Fact-checked by Jeff Zananiri

This morning during my Pre-Market Prep session, we watched Hims & Hers Health Inc. (NYSE: HIMS) tank.

Now, I knew this wasn’t a random occurrence since HIMS is what I consider a “real” stock, not a day-trade penny that can run big one day and fade into oblivion the next. 

And please don’t get me wrong, I hope you know how much I adore penny stocks. These give us some of the most bang for our buck.

You know what else delivers fast, explosive gains week after week?

My Monday Setup. This pattern mysteriously shows up only on that day, and it can move fast!

We’re talking about moves that could deliver more in one morning than most people see in a month!

And for a limited time, we’re offering the Monday setup for just $7! 

That’s an 85% discount off the regular price.

This was originally a sale just for Memorial Day, but the Setup became so popular that we kept the deal going.

It’ll only be here for about another week, though…

So, check out the Monday Setup ASAP in my video tutorial below. 

So what happened with HIMS stock today?

Bad news…

It lost a major direct sales deal. 

And because the stock fell for a good reason, i.e., news, I knew there was no point in buying it because it wasn’t going to bounce back.

That being said, there is a pattern that can be very profitable when a stock plummets, and I highly recommend trading it if it comes across your radar.

Today, I’m breaking down one of the most consistent, high-potential setups for traders with small accounts…

The Morning Panic Dip Buy. 

If you’re looking for a strategy to grow that $500, $1,000, or $2,000 account, this is the one to look for.

To be clear, this pattern doesn’t show up every day, but when it does, you need to be ready for it. 

What Is the Morning Panic Dip Buy?

This is a buying into weakness setup. 

But don’t confuse it with the dip and rip, which is a buying into strength strategy..

They may sound similar, but they are completely different trades.

With the dip and rip, you’re buying the breakout…

And with the morning panic dip buy, you’re buying the washout.

Setup Criteria

Here’s what you’re looking for in a morning panic dip buy:

  • A multi-day runner: uptrending for at least 4–5 days, ideally more.
  • Gap-ups followed by closes at or near highs: consistent strength leading into the setup.
  • Massive hype: lots of new buyers caught up in the excitement.
  • A parabolic move into resistance: emotional buying near the top.

At this point, the stock is waaaaaay overextended…

And then it happens… the stock crashes.

What makes it a true panic?

Not a 5% red day…

I’m talking a 30%, 40%, or 50%+ drop.

How to Trade It

Here’s your plan:

  1. Wait for the panic:  Don’t try to guess the bottom. That’s my advice for all fading stocks. Never try to guess the bottom!
  2. Watch for a base to form: Let it settle a bit.
  3. Look at Level 2 Data: Watch for sizes scaling up on the bid side.
  4. Wait for the first 5-minute green candle: That’s your entry signal.
  5. Set your risk at the low of the day.

You’re not trying to catch the exact bottom. You’re waiting for confirmation and then attacking with a plan.

Two Common Mistakes New Traders Make:

  • Buying too early: Don’t try to catch a falling knife before a base forms.
  • Not cutting losses when the low breaks: Hoping you get a second bounce leads to blown accounts.

Wanna spot the morning panic dip buy for yourself?

I hope you have a great trading platform…

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My Final Thoughts…

The morning panic dip buy is one of the most repeatable patterns, perfect for small accounts…

And most importantly, it requires patience, planning, and risk control, which is what separates the pro traders from the amateurs.
You won’t see this pattern every day, but when it comes, and you’re ready, it can be a game-changer.

Remember, cut losses fast, take singles, and stay in the game.

Let the market come to you, and be prepared when it does.

Have a great day, everyone. See you back here tomorrow. 

 

Tim Bohen

Lead Trainer, StocksToTrade

 

P.S.