Why Trading Patterns are More Important

Why Trading Patterns are More Important

Why Trading Patterns are More Important 1024 546 Steven Dux

Opportunity comes to...

those who wait.

The key to having a good month in trading is to focus on the long-term progression, just like one would for their career. There are gappers every day in the market; there are tickers that trade hundreds of millions of shares. There are tons of opportunities in the world of stocks, and the key is to catch it at the right moment. Develop your insight, focus on a pattern, and strike.


One stock to discuss is $NNDM; it first started trading with almost 40 million shares and had a clear momentum shift in the morning. No matter what someone’s position is, nearly 90% of the volume will be held on to during the day. When you see this, it’s a perfect opportunity to try to take a little position and play the gap. If you ever have a broker that won’t let you short because you have a small account time to find another. There are plenty of brokers out there that can find shares and short the right play. The key is to understand market mechanisms and people’s psychology.

For the penny stock sector, human psychology is probably the most crucial factor. Insight can help you get an understanding of time-management; whether to bet long or bet short. Mix that with knowledge of low float patterns, and you can be successful. If there is ever low float, even the smallest bit of trading will jump the price up. These low float stocks can be difficult and should often be red flags. A good baseline would be any float over 20 million is ok to trade. If you try to get rich quick, it will come back to bite you. Nothing is worthwhile when it happens too quickly.

If the game of shorting stocks isn't for you, and you wish only to go long, minimizing your risk has the same importance as if you were going to short.


The goal of trading any instrument should be to minimize risk. A perfect example is $GLMD; this is a 300% gapper, indicating that lots of people short the stock without any resistance. Stocks like this go up and down quickly and will quickly make you an emotional trader. It’s key to have your baseline and threshold so that you can make moves accordingly. Preparation builds confidence, and confidence will produce success.

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    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.