Navigating Thin Stocks

Navigating Thin Stocks

Navigating Thin Stocks 1024 546 Steven Dux

The market

The market has changed so much in the last couple of months that it has lead a lot of market “experts” to recommend shorting stocks heavily.

However, the choice for shorting a penny stock should never be based on the general macro market like the S&P 500. If you are not careful, stocks in even a down general market can hold their support levels and this is why evaluating the details of an individual stock, such a trades per day and multi-week breakouts, becomes highly important.

Tracking statistics allows me to know that I have a 30% winning percentage when chasing into the strength.

STOCK TICKER:

$ANTH

A great example is $ANTH when it was trading at $2.70-$2.80 because this becomes the perfect time to test the previous high. Nonetheless, a slight rise over the previous day’s high is not considered a breakout. The key here with this or any stocks is not a prediction but to respond to the movement.

STOCK TICKER:

$ZN

This brings us to a similar stock, $ZN, which is on a multi-month breakout, however, we can see the stock consistently peak at levels of $4.50 during this time, we learn that this is when the reaction at this price level counts. Our goal is not to predict the price but to proceed when this becomes a followable trend.

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