I have certain watch list that is comprised of legit Micro Cap companies that have experienced a parabolic run over the past 6-8 months. I’m not so concerned with trying to time that run and get in front of it, because trying to predict those type runs are impossible. Instead I run scans that pick up these stocks after they have made their move, and then I add them to the watch list, keep an eye on them, and wait for a specific pattern to emerge.
That pattern, which I have been most successful in trading these Micro Caps is waiting for a base and then buy the breakout of that base.
In fact, when I recently did a trade analysis on all my trades over the past 5 years, this type of trade was by far my most profitable.
Here are a few that fit that pattern today:
Welcome to Swing Trading the Stock Market Podcast!
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In today's episode, Ryan answers the questions of one listener ranging from his transition from paper trading to live trading, and swing trading to day trading. Also addressed is his approach to trading, specifically Fibonacci retracement levels and why Ryan prefers Pivot Points instead.
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