This week's lesson.
Today I want to talk about two tickers, $TNXP and $TENX, and how I made $120,000 in less than two hours trading just one of them.
Situations like this don’t happen that often, maybe ten times a year do we see stocks down-trading like this, let alone two stocks with intraday offerings on the same day.
There’s a difference in pattern between these tickers, but I want to zero in on $TNXP for this massive gain because my average was near $6.40 and I covered in the low $3’s, high $2’s. $TNXP is a bounce short that gapped up in the 9’s and started getting choppy from the morning push. I didn’t have any previous knowledge on the pre-market, so I used $7 as my risk until there was an offer, and had I not, I would’ve had a $50,000 gain instead of $120,000.
I want to explain the importance of market caps between both stocks because they are vastly different.
$TENX is trading mass volume with a market cap under 10 million. A market cap like this means it can be incredibly dangerous to short into because it’s likely other traders are pushing the stock higher than you think. However, $TNXP is on the other side with a market cap above 10 million, and that’s why I chose this ticker. Even though I didn’t make a move on $TENX, I don’t feel like I missed out on an opportunity because self-discipline has taught me to play when it counts.
$TNXP offered a massive amount and will probably have bounce shorts in the future.
We see that it held a $7 resistance and offered $5, but many people tried to dip-buy here and took a large loss. When a stock makes an offering, they will always offer a second time, especially on unwanted penny stocks. When you see a stock make an offer and do a reverse split, they have proven to be a sketchy company. If you see this pattern, don’t dip-buy on intraday or a down-trading chart because it’s too easy for the stock to be halted.