Before getting into the trade recap for the week, I want to touch base on my Dux-inator Guide DVD. I’m known for turning $27,000 into almost $4 million within three years, and this guide includes updated strategies and formulas that I’ve created to make your entry and exit more accurate. This guide gives specific details to help you trade in different scenarios because people can easily confuse which pattern they should be focusing on. I’ll show you four to five patterns with the highest winning percentage from 2018-2019, which have boosted my profits by $1 million within that year. If my DVD is new to you, it can be a great review or research for beginners.
Now, I want to get into a crazy profitable week where I made roughly $90,000. We saw huge runners that created the highest volatility; some went from $2 to $70 in three days, and some followed the hype with sympathy plays.
Once it broke the $9 level, $BPTH went parabolic, and people tried to short into the afternoon breakdown, but it was a short-trap that pushed the stock to $70. $BPTH is the main ticker I want to focus on because it broke out at $9 after not being tradable the previous week due to its extensive range. You could’ve risked $6 to $9 but doing so means you’re shorting into the resistance and won’t be able to locate your risk. Once it broke the $9 level, $BPTH went parabolic, and people tried to short into the afternoon breakdown.
But, it was a short-trap that pushed the stock to $70. As long as you know your risk, patterns, and edge, you will be profitable from these types of tickers instead of hoping the stock goes higher and risk 50% of your entire investment. Penny stocks contain many risks, but they also present so much return if played right, which is another reason you should know not to hold longer on $BPTH and end up losing upwards of 60%. I didn’t trade on this day when the stock was up because $BPTH is a micro-float that could have float rotations at any time.
It's best to sell into this parabolic action because the stock might get T1, T12 halted, and a stock can drop 75%-90% in one candle as the stock reopens.
We can see the same outcome with sympathy plays when they are getting chased too hard because they can also drop 50%-90% of their gain. Sympathy plays are based on main treads and aren’t considered a pattern themselves. If the main trend dies, so does the sympathy play, but it can make for a confusing morning if the main trend holds. Now, a pattern within sympathy plays is that they always have a massive morning spike.
This is why I give the market 30 minutes or so to play out and watch where the stock goes. You don’t want to be apart of everyone getting in on that sympathy play out of the gate and cause the massive drop. We see that with $SEEL and $TNXP, which both dropped over 50% of their gain no matter how many sympathy plays were traded because the reaction is always the same; the more people chasing, the more the stock will drop, and the higher the spike, the more panic there will be.
Since 2017, I've been trying to perfect my strategies and filter out tickers that my focus doesn't need.
Since 2017, I’ve been trying to perfect my strategies and filter out tickers that my focus doesn’t need. Even though I didn’t catch $SEEL and $TNXP, I’m not regretting my choice not to trade even though it was a difficult road getting to this realization. At the beginning of my career, I thought that if I missed a ticker, I lost out on money and felt bad for myself; this mentality, paired with the thought that I should go bigger next time, is the opposite thought process to be consistently profitable.