Stocks are under some pressure this afternoon, as all major indices are pointing lower. However, we’ve seen several reversals this week (green to red and red to green)… who knows how long stocks will be selling for.
But you know what?
When you trade penny stocks like how I teach my clients to… you’ll be surprised at how many opportunities you can find on any given trading day.
You see, I teach my clients how to trade three simple chart patterns. However, it’s not just that chart pattern that matters. Almost every stock that gets alerted has a catalyst.
And of course, no trade is ever worth putting on if the risk vs. reward doesn’t make sense…so you better believe each idea comes with a solid trading plan.
For example, our recent trade in Seelos Therapeutics, Inc. (NASD: SEEL).
It was a classic fish hook pattern…one that I was teaching Millionaire Roadmap (MR) clients how to trade in real-time.
How did they do?
Pretty darn well if you ask me:
“JB… $550 on SEEL first run… I’m back in again.” ~ Philip G.
“Sold SEEL @ $3.20 $720 thx JB.” ~ Trey C.
“Out SEEL $341 profit.” ~ Christopher M.
“Sold SEEL early but I’ll take $100 bucks in 10 seconds any day.” ~ Blake C.
“A quick $600 on SEEL, thanks JB!” ~ Franz S.
“Thanks JB, SEEL in $3.02 and out $3.30, nice gain.” ~ Didier N.
“Thanks SEEL +$7,340.” ~ Mike B.
“Out SEEL +$1,300.” ~ Adriano S.
“Out SEEL…+$368.” ~ Kirk P.
“$1,300 realized profit in 24 minutes, thanks JB.” ~ John M.
Now, if you’d like to learn more about the setup, and how you can find the next trade like SEEL, keep reading.
How are they doing that?
They’re using my three patterns, which have been proven in all types of markets… bullish, bearish, and choppy.
What am I talking about here?
Well, one of my money-making patterns is known as the fish hook pattern.
Take a look at an example of this pattern in Seelos Therapeutics (SEEL).
Notice how the pattern actually looks like a fish hook. What we’re looking for is a steep drop… following by the stock finding a bottom and turning higher. This pattern is great to find penny stocks and small cap stocks that have crashed… and have the potential for a dead cat bounce.
Well, what do you do after?
You find a spot to buy the stock, and have a clear stop-loss price.
It’s really that simple.
Now, I actually alerted Millionaire Roadmap clients about this trade.
Basically, what I saw was my fish hook pattern, and the fact that SEEL didn’t fall with the market… a clear divergence. In other words, it went up the day the market sold off (on Friday). That said, it was a high-probability setup.
Here’s a look at what Millionaire Roadmap clients were saying just the same day I alerted them about the trade.
Another Fish Hook Pattern in an Oversold Stock
Here’s a look at another fish hook on the daily chart in Uxin Ltd. (UXIN).
At these levels, the stock had great risk-reward. So you could’ve bought the stock at $3.72 and sold your shares if the stock dropped below $3.50.
It’s the same idea as the SEEL trade. The stock drops… finds a bottom… starts to turn higher. Thereafter, you find a spot to buy… and stop-loss and target areas.
Well, here’s what happened just a day after I alerted Millionaire Roadmap clients about this trade…
Here’s what one trader in the Millionaire Roadmap chat did with this idea…
“$2400 on UXIN…thanks JB.” ~ J.L.
It pays to study these lessons because stocks have a funny way of repeating themselves. That said, I’ll be back with you tomorrow with another lesson like this.
Lastly, if you’re itching to learn more about trading options, then make sure to check out Nathan Bear and Jeff Bishop tonight, here’s the link, its a free live training that starts at 8 PM ET.