While most Americans dread Monday mornings it’s actually one of my favorite days of the week.
Because it allows me to do this:
I was able to take down $2,000 in trading profits pretty much before the market even opened and most Americans were on their morning commute… all in the comfort of my own home.
And the best part?
I planned for it.
Here’s what the email to client’s looked like on Friday:
Of course, not every Monday starts off like this… but at least they have the potential too…
Apr 15, 8:40 AM
jeff williams (Moderator): Anyone make money on FLKS today? Its just huge
michael ch: yes Jeff, 3k shares, made $181
Apr 15, 9:35 AM
frank s: Sold SBES @.002 $850
Apr 15, 9:35 AM
david y: Out SBES for Plus $1400.00
Now, part of me showing you this is two-fold. The first to motivate, and the second, to show you how can do it too.
That said, I’d like to walk you through the mechanics of my winners today… these setups are easy to identify after you see them.
Chart Patterns for Penny Stocks
How was I able to rake in nearly$3K with a relatively small account?
I just traded the same patterns I’ve always been trading. Now, if you want to learn about how my patterns work, you’ll need to learn a bit about support and resistance first. Not only that, understanding how volume works with penny stocks helps too.
For example, here’s a look at a pattern on one of the stocks I traded.
This is a pattern where support and resistance come into play. For example, you notice the stock pulled back from the $0.60s area… all the way down to 30 cents. Thereafter, the stock traded in a consolidation area. Well, if you look at the consolidation area… you’ll notice two horizontal lines. The upper blue horizontal line is the resistance area, while the lower line is the support.
When a stock is in a consolidation area, that means it’s trading in range. Generally, when we see this, we look to buy in the consolidation area. However, this time… I wanted to be a little more patient and see some confirmation.
Notice how the stock broke above the resistance line… hit a high of 55 cents… only to pull back. You see, that level was another resistance area. In other words, it had a hard time breaking above that.
What we want to see is the stock trend higher, then volume starting to pick back up.
Well, just one day after we got in… the stock broke above that resistance level, and got to my target in the $0.60s area.
Now, here’s a look at another one of my patterns. You’ve probably seen it before… it’s called the Staircase to Profits.
If you look at the chart above in South Beach Spirits (SBES), you’ll notice how the stock goes up, pulls back… goes up… pulls back, and so on.
Well, with this pattern, we want to buy when the stock pulls back to a support level… and we also want to see volume starting to pick up. As you can see above, I bought shares at the blue horizontal line. That’s the support level at $0.0015.
Thereafter, I locked in 30% on the trade, as the stock started to run higher.
Here’s a look at another stock I traded.
Does this pattern look familiar?
Well, it’s the same pattern as FLKS (the first chart we went over).
You can see how SIML was trading in a consolidation area for quite some time… until volume started to pick up and the stock started to trend higher. Well, on Friday, I bought shares at $0.061. The reason being: we’ve seen this pattern so many times at Penny Pro… and stocks exhibiting this pattern tend to run higher. Well, the very next trading day, I sold my shares at $0.075 – locking in 23% gains.
With all of these trades, it literally took less than 30 minutes of work. I bought FLKS and SIML on Friday, and sold today… and I bought SBES just a few days ago and just had to remain patient with it.
Now, if you want to learn how I was able to generate returns like these… check out my 5-step trading plan – The Profit Prism. There’s a special offer in there, and it ends soon.