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:
