How To Spot And Avoid Traps In The Current Market

How To Spot And Avoid Traps In The Current Market

How To Spot And Avoid Traps In The Current Market 1024 546 Steven Dux

Welcome back to my lesson of the week, and today I want to give some advice on spotting traps early on. To do that, we will look at stocks $IGC, $NBEV, $OGEN, and $PTIE.


$IGC put many people in the hole with its impressive bounce that ended up squeezing out all of the shorts. Even though I took a loss due to my entry not being executed, the problem people seem to be having is coming in on the front side of these crowded trades. That’s something I steer clear of because guessing the front side of a ticker like this can wipe you out completely.


$NBEV appears messy and didn’t hold a crack like I found previously because of the support it shows. Patience is the best response until the resistance starts to form, and you can short for a swing position. We can see similarities with $OGEN, as well as how easy it can trap you. Again, you can avoid these traps if you wait to see resistance because right away, $OGEN breaks the high and gaps down 40%; this allows for traps on both the long side and the short.


Risk management plays a huge role, just as it always does because you could make significant gains, but if you can’t control your risk, small losses quickly become big losses. When I look at $PITE, I see the potential, but when I consider risk management, there’s a lack of resistance, and it presents no real area to risk too, so I remain patient that tomorrow it may become an overstaying gap down.

Leave a Reply


    Insert your name and email address to apply now!



    If you’re new to all of this and have limited knowledge as to how the stock market works, I highly recommend you invest in The Freedom Challenge.