0:30 My profits yesterday alone were $5,000+ so study up and learn these stable patterns in penny stock trading! Tim Sykes here with another trade recap.
It is good to learn from what works, what doesn’t work, your wins, your losses. You need to reflect on everything that is happening, so I’m proud to share my trades. I made roughly five grand on Tuesday trading penny stocks. How did I do that? My most significant two wins were on classic patterns.
0: 51 Straight out of my DVDs Heavy Stocking Part Deux, Heavy Stocking Framework, How to Make Millions. You need to watch them all so that you understand these patterns. This is EMHTF. Weird little ticker. But if you look at the chart, this is a classic uptrend.
1:08 You can see here where it breaks out again and again and again. I made a video lesson yesterday. Watch it on profitly. And I was merely looking at this former high here. In the 660s. It closed strongly in the 680s yesterday.
1:16 I was long overnight. And I sold it too soon today. It’s up another 10 percent. I sold it near the market open in the low sevens. So now it’s in the mid sevens. This is a little overextended for my taste. POTN is a very similar chart when it broke out here, and I was long at 30 cents. This one is finally having its first red day. But this one went out for one, two, three, four, five days. So day six is red on this one.
1:42 EMHTF, we have one, two, three, four, five. So maybe tomorrow it’ll be red, I don’t know. I would not be aggressive buying a stock like this on day four even with the breakout, but it is a break out so I went long and I profited.
2:01 Little over 1,000. My more significant win was on PRMCF. Which is a similar marijuana company. This is not a break out over the previous highs. This is the first green day.
2:12 I’ve done a lot of video lessons on the importance of a first green day. I’m more comfortable with this because first of all, this stock has obviously proven that it can go up over the past several days and weeks.
2:25 This is a 90-day chart. Now it’s come down quite a bit. And you had three big red days. Then it’s been consolidating for four days. Yesterday was its first big green day. And that told me, wait a minute, this thing can bounce again. So I’m looking for the volatility.
2:40 You don’t have to try to find the exact bottom when you’re trying to dip buy some of these plays. You’re trying to see which ones have the momentum potential to bounce.
2:50 I don’t want to just dip buy anything. I mean if you look at a stock like DPW, okay, it had one green day here, but aside from that, I mean, it hasn’t paid off trying to dip buy this.
3:00 Even MGTI, same kind of thing. It had one green day, but you can see here, after the big run-up, it’s just been a gradual decline. And XTD is another one. So it’s very, very tricky to dip buy any of these plays when, guess what? They might just keep fading for all eternity. And you don’t want to belong that.
3:23 The reason why I got into PRMCF yesterday, and I sold it quite nicely today right around here in the 940s, 950s area. So I, for once, sold well. If I’m going to screw up, guess what? If I’m picking a penny stock that’s going to spike 100 percent, even if I screw up, I’m going to make 10 or 20 percent. That’s the kind of upside potential. Those are the kind of plays that I like.
4:30 You got a little bit of a bounce. And this is where I made my money. It was too quick for an alert, but I previewed it even before I traded it in the chat room. You had a few minutes to get it around 75, 80 cents and sell it at a dollar. I mean this is an excellent little 20, 30 percent bounce, it was just quick.
4:45 And you have to protect yourself if a penny stock is not bouncing. A lot of you guys just hold and hope. Hope is not a strategy for me.
4:50 Sometimes I sell too soon, but even if I sell too fast, you see I’m still making 10, 20 percent on my money versus, you know, where I could maybe have made 50 percent.
5:14 Out of all of these trades, PRMCF was my best. This one had an excellent little dip buy and bounce opportunity today too. But I’m more interested in the first green day. So long story short, PRMCF, first green day. EMHTF break out over the former highs, and UMFG was a morning penny good buy.
5:37 Learn to love them and if you understand that, leave a message underneath this video saying, “I love these patterns.”
5:50 These are three useful patterns that happen again and again and again with penny stocks. You just have to be prepared for them. Even if you sell too soon, it’s better to be safe than sorry. Protect, protect, protect when the trades don’t work out.