So far this year, the S&P 500 is off to its worst start since 1939. That sounds dismal…
But if you primarily trade penny stocks, then you’re probably oblivious to all the doom and gloom chatter…
Because over here in penny stock land, it feels like the Super Bowl and the 4th of July. There’s just so much excitement and opportunity.
However, you’d never know it if you just turned on your TV.
But just because there are awesome profit-taking chances available … doesn’t mean you can get sloppy.
It all starts by having a trading plan.
Every trading plan should include your entry, risk level, and where you’ll take profits if the trade works.
But timing exits can be one of the hardest things to do…
Many times, traders have a goal in mind, but then when the stock hits it, they get FOMO. They don’t want to miss out if it goes higher, so they hold.
Then, as the stock reverses, they get greedy. They want the share price to go back to their goal so they can get out.
But a lot of the time, these penny stocks don’t go back up. Their winning trade turns into a loser. They leave the trade with a loss and a ton of frustration.
What if there was a tool that could help you eliminate those emotions from your trading?
A tool that outlines the trade plan right on the chart … All you have to do is follow it! That could be a game-changer, right?
Read on to find out how this next-level trading algorithm can work for YOU.
The Ultimate Afternoon Trading Tool
I’ve been harping on about waiting for afternoon trades for a while now. That’s because it gives traders time to let the market shake out.
In just a few hours, anything can happen in this market. There’s no need to rush into any trades.
Let all the gung-ho traders get in and out of their positions during the most volatile time of the day.
Then, sit back and wait for your ideal setups.
StocksToTrade’s new algorithm can help you find them.
We’ve built the new algorithm into new and existing tools in the StocksToTrade platform…
Like the brand new ABCD Screener which you can now access by clicking on this new menu icon.
You also will get access to a suite of new parameters in our powerful Screener+ tool that you can use in conjunction with any of our other 150 + parameters that we make available inside the screener.
Once you find an interesting stock from your screener, you can view the chart and find the new ABCD chart indicator by clicking the indicator button. (Outlined in red below.)
Once you add the indicator to your charts, the algorithm will look for three specific points — A, B, and, C.
Then it will use those three points to confirm a D point.
The idea is that you’ll execute your entry at the C point and exit at the D point.
Here’s what the indicator looks like:
Here’s How It Works
Once you’ve entered a trade at the C level, you can potentially take profits anywhere within the blue section. The green area is where the stock is expected to reverse…
If you held your position through the blue area, this would be the last suggested stop for exiting your trade. If the stock doesn’t reach the green area, the pattern has failed and you should exit immediately.
Another great feature of this algorithm is that it can also help you try a new strategy…
If you want to try your hand at short-selling, the green area is where you would potentially enter a short position. The white area above it is the suggested stop, and the yellow area is where you would potentially buy to cover.
Now you can see how this algorithm can be a game-changer for your trading — it lays out everything you need to go long or short, right there on the chart!
Seeing the trading plan right in front of you makes it hard to ignore. And that can help you cut out your emotions when you’re in a trade.
If you’re still not convinced about the power of this algo, watch my video below…
Get ready for Money Monday now with StocksToTrade’s new ABCD algorithm today!
Have a great day everyone. See you back here on Money Monday!
Lead Trainer, StocksToTrade