Nobody can resist a good deal…
It’s human nature to love a discount or feel like you’re getting something for nothing.
But in reality, do those kinds of deals ever work out?
The saying ‘you get what you pay for’ rings true — with everything in life, but especially in trading.
Penny stocks are penny stocks for a reason. And when a ‘real’ stock plunges 30% in a day, it’s for a reason…
That’s why I don’t look for deals in the market — I look for an edge.
Is there a trading edge in Snap Inc. (NYSE: SNAP)? Read on…
How to Trade SNAP’s Earnings
In Friday’s SteadyTrade Team webinar I got a ton of questions about SNAP…
Is it a dip buy?
Can it bounce after dipping 30%+ on bad earnings?
Yes, nothing is impossible.
But is it a safe and repeatable strategy to dip buy an earnings loser?
No.
That’s why I never recommend trading earnings losers unless it’s on the short side.
But that brings up another question…
How do you short a stock that’s already down 30%+?
Can it go lower?
Again, nothing is impossible.
But you can see that it’s a guessing game at this point…
SNAP could bounce, but it could also go lower. Where’s your edge?
I don’t like guessing games.
What I look for every day are irrational stock moves … Stocks that have moves disconnected from reality…
Like SOBR Safe, Inc. (NASDAQ: SOBR) last Thursday and Intelligent Living Application Group Inc. (NASDAQ: ILAG) two weeks ago.
But SNAP’s move is based on reality … It’s down huge because it missed earnings and TikTok’s kicking its ass.
So unless you have a good shorting strategy, I wouldn’t touch SNAP.
Instead, focus on repeating penny stock patterns…
Like Microvast Holdings, Inc. (NASDAQ: MVST) on Friday … Oracle laid out the levels for you. And it was a day three surge pattern.
MVST chart: 3-day, 1-minute candle — courtesy of StocksToTrade.com
If you focus on the patterns and process I teach — and tune out other distractions — you’ll be on your way to becoming the trader you want to be.
See how you can find stocks with irrational moves here.
Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade