Ending July with $160k Trading Profit

Ending July with $160k Trading Profit

Ending July with $160k Trading Profit 1024 546 Steven Dux
Welcome back to

this week's lesson.

Today we will discuss some previous tickers that lead to a profitable July back in 2018.

Now, July kicks off the start to a hot season in the stock market, and we can see that compared to numbers back in 2016 and on. July, August, and September always have a good come back after suffering through a slow summer and these three months lead right into an even hotter year-end. When we get into October, November, and December, we see supernovas and big plays around the holidays that make for the three most challenging months to trade.

STOCK TICKER:

$VISL

Throughout July in 2018, I made a gross profit of $160,000. Most of those trades were small gains and all patterns such as bounce short, gap-up short, and the first red day. However, I made only a few big trades, and I want to get into those. $VISL is one of those trades and was a classic, low-float pump that went from $1 to $8. I shorted into the consolidation breakdown at $6.50 and should’ve held overnight but sometimes taking on those borrowing fees don’t seem worth it. The next day, $VISL made an offering, but that was unpredictable, and I let go.

STOCK TICKER:

$CEI

Moving on to $CEI, we see another low-float that I took a partial portion on at $5.40 when it was around $9 going into the spike. This ticker didn’t present a pattern that could be traded because the intraday chart showed no resistance. When you have a stock showing a gap up, weak opening, mid-day perk pattern, and then break at $5 to go to $9, then you don’t see a consolidation resistance, and it’s all parabolic. Without that consolidation area to short into, you’re at a huge risk when using overstaying gap-down into that $6 area.

STOCK TICKER:

$EVER

Before continuing with $EVER, which has a low volume of around 2 million, I want to talk about market cap and the specific categories within the different market cap zones. Penny stocks start around 10 to 100 million, mid-caps come in around 100 to 500 million, and large caps near 1 billion or more. When using volume prediction during the pre-market, we typically don’t see anything trading under 10 million because, by mid-day, a stock will have at least traded 7 million or more. Because that’s not the case with $EVER, you’re looking at low liquidity and a big market cap, which means you’ll be faced with a large spread.

That spread makes your execution that much more difficult, and you'll end up affecting the price substantially, whether you go long or short.

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