One of the EASIEST PATTERN to master in day trading.

hello guys steven dux here welcome to this youtube videos today we're going to talk about a little bit different strategy compared to the normal method we're talking about pretty much in other videos so this strategy is specifically designed for swing traders that won't have a passive income by trading penny stocks and micro cap stocks let me introduce this strategy and make sure let me know if there you have any questions or leave a comment below as usual please click the like button and subscribe it's going to really help our youtube channel to produce more videos and let's get into this content so in the first point i want to talk about in the course of trading years there is about five to ten maybe up to 20 tickers in 2020 they all formed different kinds of new patterns and this pattern has been existing in pending stocks or microcap for a while but as i said it don't happen that often maximum happen between 20 to 30 times a year it's a very valuable strategy for part-time twitter and let's give you example so the first example i'm gonna give will be bngo this is a little bit different compared to other examples and i will let you know why it's different there's going to be two types to use the specific strategies and one of the type is not very ideal so uh it's really easy to mix two of them up so let me give you a clear example of how to really spot this type of strategy so first of all let's look at bngo this is a ticker that if you look at the long term went from 50 cents to almost seven dollars so the total gain will be over a thousand percent the first thing you want to look at will be the total gaining percentage it has to be over one thousand percent uh also it has to be above three dollars normally that if the stock is under three dollars it's not going to produce the results you want to so in this case bngo is definitely over three dollar and it's over one thousand percent for this specific strategies the flow and the market cap doesn't have a restriction so it can be as high as they want as long as it's not over 2 billion dollar or more so that's the first criteria second criteria you want to look at will be how much data has been traded up into the highest consolidation so bngo if you can see it it consolidated between 5.7 to around seven dollars so in that specific day it traded close to 600 million volume so 600 million times six to seven in terms of total dollar traded is around three to four billion dollar traded in january fourth so that's a lot of resistance to be able to use this as a swing trade you will have to short under the consolidation within about 10 to 15 percent your potential entry you have to be really close to the consolidation because normally the consolidation is pretty wide so it has a decent range between the high of the consolidation and the low of the consolidation so the height of the consolidation is around 6.7 low of the consolidation is 5.9 so to be able to find the entry after market open the closest you can get for bngl will be 5.8 to 6.5 and risk the high of the consolidation will be seven dollar area so personally for me i will try to manage my positions into the best spot that has the correct risk management so in my head i was sizing about 30 around 5.5 to 5.6 that's right below the consolidation and if it tends to go up and keep going test the highest of the consolidation i will need to have a risk in this case i would rather be as close as to my risk as possible i would have a second entry point around 6.5 to average my first entry point and that will give me the average of 6.3 to 6.1 so the ultimate position compared to the risk i'll be around 6.2 risking around 7. so i'm risking 80 cents out of a seven dollar stock which is not that bad and also you can sizing a decent amount of positions because bngo traded 500 million shares per day so it provides a decent and sufficient liquidity for you to go in and out without any trouble and also you don't have to worry about affecting the stock price so once you find your ultimate positions sometimes you don't get your sizing the full position you want but the normal risk reward you can get is up to 50 off the top sometimes 75 in terms of how long you want to hold so for bngo maximum reward if you try to cut the gans in half so let me give you a decent example here so let's say this starting game is 50 cents put the second horizontal line up to here and we want to measure the entire range that was produced for the last five days and you cut the stock in half so the max reward is anywhere between 3.5 to 3.7 that's after about a week or two but also it's depending on the chart as well you want to look at where the major support is and to be able to find the maximum reward point so for bngo for this specific case you have a massive support around two to three so shorting around the 5.8 with 30 positions because we didn't get to seasoning into the middle of the consolidation covering around 3.5 or above 3 you will be able to make 50 percent from your original positions pretty close to 50 and this pattern will happen again and again so three criterias for this pattern stock says to go up around one thousand percent or above one thousand percent second the market cap has to be below two billion dollar third you will have to short below the consolidation if there's no consolidations don't touch it because you are a swing trader and you want to look for the perfect criteria to hold for days not intraday trades you want to just get into the actions and be able to make money off that you want the stock to fit your criteria to meet your criteria and follow the rules so that's for entries in terms of risk management part make sure your risk is within 15 percent if you exceed 15 to make sure sizing small because at that point it's probably not worth it to short a stock if you're risking more than 15 percent the last part will be the exit part normally stock will cut in half of the entire game make sure measure the entire gain then use that 50 as guide and also be able to find the support to get like a neutralized area it's going to be a range for bngo is anywhere between 3 to 3.5 depending on different stocks you will have a different support and a different 50 area so that's up to you to find out and that will be all the parts that i can cover for this specific swing strategies and if you enjoyed the video make sure to click the like button and i will see you guys in the next one you

Channel: Steven Dux

Views: 138,827

Keywords: Penny stock millionaire, learn to trade, market, trading, trade, business, invest, investment, finviz, profit, day trading, penny stocks, trading strategies, how to trade penny stocks, penny stocks for beginners, stock market, investing, how to invest, how to make a living day trading, steven duxi, steven duxi trading, steven dux live trading, stocks to buy in a recession, steven dux, steven dux patterns, steven dux statistics, steven dux trading techniques, market cycles

Id: 1k75FfB0Dms

Length: 8min 0sec (480 seconds)

Published: Sat Jan 16 2021