They hit up their favorite chat room to see which stocks other members think are moving or how high they think certain stocks are going to go.Or maybe they buy alerts off another “guru” who tells them when to buy based off the spikes they’re predicting. I’ve made tons of money off the plays that the students in my TIMAlerts group have found and posted about for the whole community to see.
But what was really interesting to me was the copy of the presentation that I was able to look at because I took the time to dig into the SEC filings.
In particular, the company included a slide showing a feature comparison matrix that put OHGI ahead of their big-dollar competitors.
And a company that puts out a better product than services like Skype and Whatsapp? So I knew that this was a stock that had spiked before on news, and I knew that news was about to come out about the company’s investor conference, thanks to the presentation I was able to view ahead of time.
I bought in anticipation of the hype, and sure enough, when the press release came out the next day, the stock spiked.
It’s a play that all penny stock traders need to learn to recognize and avoid.
Here’s how a lot of people try to predict that a spike is happening…
I’ve developed these years over 15 years of trading penny stocks. One of the quickest ways to identify a spike in the making is to start by finding a stock that’s already moving. Or would you rather use the many research tools out there to find stocks that are already moving?
Here’s a stock I bought on Friday aiming to sell into a spike tomorrow: Notice the stock has been up trending for several days BEFORE I bought.
So I decided to do some digging…First, I went to to look up the stock’s filings and disclosures.
I saw there the stock had some new SEC news in their filings.
I’ll give you a hint – one of these strategies takes a whole lot less time than the other…I’m always looking for stocks that are breaking out to new highs – especially those that are still up on the day and holding the morning high. If you see a play like this on a Friday afternoon and the stock’s still holding its morning high, there’s always the potential for a short squeeze into the close there.