Happy Monday!
Welcome back to the Wolf’s Den,
To profit this week, we’ve gotta play the right patterns.
Patterns that repeat over and over again. I’m not joking … Sykes has played the same patterns for over 20 years.
Predictability turns into profitability.
And I saw the same stock spike twice last week. Both times it was following the same pattern.
Maybe we see this stock climb even higher!
Or maybe we see another low float that spikes …
Either way, there’s enormous profit potential out there.
And this is the pattern to use …
Examples
It’s a basic support and resistance play.
But when we focus on stocks with …
- Low float (below 10 million shares)
- High volume (Close to or at least as high as the float)
- News
- History of running
It becomes a really powerful pattern.
Growing A Small Trading Account? Check this Out
When multi-millionaire trader Mark Croock first started trading, he was an overworked and underpaid accountant…
So he knows what it’s like to start small while wanting to massively grow your wealth as quickly as possible.
That’s why he recorded a step-by-step training that reveals what he believes is the best options trading method for someone trading with a small account.
As an example, I’m using Minerva Neurosciences Inc (NASDAQ: NERV) from last week’s spike.
- Float: 3.9 million shares
- Volume: +30 million shares on Friday
- News: FDA Application
- History: Spiked on August 4
Here’s a chart from Wednesday when it spiked +50%. We drew in the support and resistance lines …
And here’s one from Friday when it spiked another 50% …
See the similarity?
They both bounce off support and break out through resistance.
Here’s the strategy … traders try to buy above the support line and wait for the breakout. But we’ve gotta wait for the price to consolidate sideways. Don’t guess at where the support might be. Let it show you.
The goal is to buy as close to support as possible. That’s how to maximize profits and control losses.
If the price tanks instead of breaking out, traders cut the loss at the support line.
The Hottest Stocks
Definitely keep NERV on the watchlist!
Past runners can run again, and this thing might still have some juice in it.
But if you want the hottest stocks right when they start running, there’s no better tool than StocksToTrade Breaking News.
It’s run by two ex-hedge fund execs. They sift through Wall Street’s hottest news and notify me whenever there’s a potential spiker.
Here’s a link to get involved.
Let’s have a green week,
Roland Wolf
Editor, The Wolf’s Den
P.S. This is a really special week! It’s the first week of your trading journey with Tim Sykes. I remember my first week … look where I am now! And you can be next … click here!
All content in this newsletter is intended for educational and informational purposes only.
The material in this newsletter is not to be construed as (i) a recommendation to buy or sell stocks, (ii) investment advice, or (iii) a representation that the investments being discussed are suitable or appropriate for any person. No representation is being made that following The Wolf’s Den’s strategies will guarantee a particular outcome or result in profits. The price and value of stocks may fluctuate depending upon various market factors, and, as such, the strategies used by The Wolf’s Den to adjust for those fluctuations may change without notice.
There are significant risks associated with trading stocks and you must be aware of those risks, and willing to accept them, in order to invest in these markets. Past performance of any trading system or methodology is not indicative of future results. You should always conduct your own analysis before making investments.
You should not trade with money you cannot afford to lose and there is a risk that trading stocks will result in a complete loss of your investment. Trading stocks, particularly penny stocks, is not suitable for everyone and requires hard work, due diligence, capital, and substantial time to monitor the market and timely execute trades.
