From the threat of immediate tariffs to a tariff pause to a reprieve on tech tariffs, the markets can’t seem to find any clear direction…
We continue to experience wild swings day after day,
And I keep saying it over and over again because it’s true…
Day and penny stock trading is the way to avoid the drama of the headlines and the broad market.
But it’s not about trying a bunch of random trades and just hoping something works.
It’s about knowing the patterns and having a plan in place…
And it’s about finding the high-quality setups that have proven themselves time and time again.
Need some guidance?
Join me every morning at 8:30 am ET for Pre-Market Prep. We’ll look for the setups together, and I’ll show you exactly how to trade them.
To access Pre-Market Prep, join my Daily Income Trader System today.
In addition to Pre-Market Prep, you’ll get three other daily webinars, Oracle, trade alerts, and much more…
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Last Friday, before the market open, I spotted a stock exhibiting a pattern I look for. I mentioned it during my Pre-Market Prep as one to keep an eye on…
And just like so many reliable setups, it played out in our favor!
On Friday morning around 8:15 am, penny stock Ocean Power Technologies (NASDAQ: OPTT) dropped a press release.
The stock was then off to the races, spiking about 17%* in a mere 15 minutes.
OPTT 2-Day, 5-Minute Candles Chart; SteadyTrade
So why was this move not surprising?
Because OPTT was a former runner.
So what are former runners, and why should you care?
The Market Is Made Up of People
It’s not just numbers on a screen. The market is comprised of emotion and memory.
It’s people reacting to what’s happened before.
That’s why former runners matter.
Stocks that have spiked hard in the past tend to do it again because traders remember them.
They recognize the ticker. They remember the action. They know how that stock trades.
And when it shows up on the scanners, especially because of a press release or a big gap, traders pay attention.
How else would a tiny penny stock like OPTT drop news and get the attention and the trade volume it did?
It’s simple.
Take a look at its history…
OPTT 6-Month, Daily Candles Chart; SteadyTrade
Former OPTT traders remembered this stock and knew it had the potential to run. When it appeared on their radars, they knew their chances of success were good.
Why Don’t I Just Send You a List?
As soon as I talk about former runners, which I often do with my Daily Income Trader members, I usually get the question, “Hey Tim, can you send me a list of former runners?
And my answer?
No, it doesn’t work like that.
You can’t just download a PDF with 1,000 tickers and expect to know how those stocks trade. You’ll learn nothing from that.
It’s not about a list. It’s about experience. It’s about showing up on a daily basis, even if you’re not placing a single trade.
You need to be in the market in some capacity every single day…
Watching, observing, logging. Running scans, seeing the top gainers, and tracking them.
That’s how you build what I call a mental database.
This is how you actually get good at recognizing former runners.
- You show up every day, whether you trade or not.
- You run your scans: volume scans, top percent gainers.
- You track the big movers. Then, you log them and save them.
- You study, you review, and you remember.
Do this long enough and it becomes second nature.
You’ll see a ticker pop up and go, “Oh yeah, I know this one. It ran hard two months ago.”
What is the best way to accomplish all of the above?
Use the best trading platform you can find…
It should include real-time data, charting, scanning capabilities, technical indicators, and more.
My top pick is StocksToTrade. It has everything you need to stay ahead of the game.
And right now, you can get two weeks of both the STT platform and our Breaking News Chat service for $17.
Grab your 14-day StocksToTrade + Breaking News Chat trial today for only $17
My Final Thoughts…
Former runners matter.
Not because they’re magic, but because traders remember them.
And they’re high-probability setups because they’ve proven themselves before.
As day traders, that’s exactly what we’re on the hunt for.
So build that mental database of former runners.
And the next time a name like OPPT shows up? You’ll be ready.
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
P.S.
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We’re talking about the kind of move that can deliver more in one morning than most people see in a month.
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