Trading No doubt, the whole world seems crazy right now. So, first I want to say that I hope everyone is staying safe and staying home. My thoughts go out to everyone affected by this virus.
I’m sheltering in place on the West Coast right now, in the time zone I dislike trading in the most … I’m just not a morning person. My Wi-Fi is also glitchy since so many more people are home and on the internet. But none of that has stopped me from trading.
And even though the overall market is down, penny stocks are HOT. They’re so hot that “U.S. News and World Report” wrote this article about my favorite niche and how my students and I trade it.
There are TONS of opportunities in the coronavirus sector right now. It can be overwhelming. So if you’re wondering where to start … read on for my top trading patterns for this market or any market.
Where Should You Start?
The best place to start is to use your time at home to study and learn the markets.
Start learning about penny stocks by reading my free penny stocks guide. It’s 11 chapters of key information to help you get started in the market.
For more in-depth lessons on my key trading patterns, check out my “How to Make Millions” DVD. (All proceeds from “HTMM” go to charity.) It’s my most complete trading guide. I go over how a world crisis and hot sectors can provide a lot of opportunities.
What to Focus on in a Crashing Market
Right now, people are losing their investments and retirement savings. It’s devastating. It’s also why I don’t stick to mainstream strategies.
So what do I do when the market is crashing?
I trade strategically. I trade like a sniper. I stick to my trading patterns and I stick to my niche. That’s how I’ve built my fortune.**
I made $15,439.20 last week.** Even though I’m trading in a time zone I hate and with Wi-Fi cutting in and out. Check out all my trades on Profit.ly.
Learn How to Trade Hot Sectors
Most people underestimate how high stocks in hot sectors can go. These stocks can have legs — and they can go higher and run longer than you think.
Right now, the coronavirus is creating the hottest sector we’ve seen in years. It’s bigger than the bitcoin craze and pot stocks.
Companies releasing news about anything related to the coronavirus can spike big. That can be producing masks and protective gear, developing tests, or working on a vaccine.
You also should watch for sympathy plays in other stocks in the same sector. If one is running, others can start to run too.
Dip Buying Recent Runners
You need to keep recent big percent gainers on your watchlist. They can give you more than one trading opportunity. That’s what happened with…
IMAC Holdings Inc. (NASDAQ: IMAC)
IMAC was the biggest winner on March 24. That’s when it announced it was launching a tele health option. The new system allows patients to communicate with medical professionals without leaving home.
T2 Biosystems Inc. (NASDAQ: TTOO)
TTOO has a terrible long-term chart. I can see the newbie short sellers drooling over it. But you can’t underestimate stocks in a hot sector with news.
Shorting the First Red Day
Short selling is NOT for newbies. This strategy is very risky. You can lose the money you have in the trade and far more. You can blow up your entire account if you don’t cut losses quickly.
I don’t recommend shorting right now. There are so many newbie short sellers and short-biased chat rooms led by newbies. Be careful of who you follow.
And if you insist on shorting, do your research. The first red day can be a good pattern here … But do your homework first.
The first red day follows a stock’s huge run-up, like a supernova. After multiple days of running, the stock opens below the previous closing price.=