With an earnings event creating huge volatility, it seems logical to short a post-earnings play as it becomes “overextended”. I’ve done a LOT of backtesting around this theory, and have not been able to materialize any hint of a profitable strategy. Shorting momentum stocks with a strong catalyst like earnings can be dangerous because they […]
This came out of a conversation I had on Twitter with @PephStock. I plan on going into much further detail about how I use the Trade Ideas platform to facilitate my automated trading, but this is a quick brain dump I offered up this morning. I’m using trade-ideas to automate my trades (more info here […]
Historically, most of my success has come from trading on the long side. Up until 2018, we were in a bullish continuation market, so buying earnings-driven continuation breakouts made sense to me. Now that I have access to a dedicated earnings scanner, I realize that there is a ton of opportunity for shorting. Here’s a […]
What is Pattern Recognition? Pattern recognition is critical in developing an edge in the stock market, and just like anything else in this discipline, it must be an extension of your personality and skill sets. For example, I am a visual person so I excel at discovering patterns in stock charts, and that helps to […]
I’m back in front of the screens today after my holiday break was extended by a nasty head cold. As expected, earnings were light going into the end of the year, so my trading followed suit. While I logged a total of 338 trades in Q4, December as a whole accounted for only 14 of […]
When I search for the best stocks to buy, I look for three easily identifiable catalysts: a positive reaction to earnings, a high percentage of the float sold short, and a technical breakout.
Any AIR member will attest to a stock’s ability to generate abnormal returns in the sub $20 niche, especially when an earnings catalyst is applied. This became apparent to me as I was introduced to the “penny stock” niche in mid 2012, and I immediately recognized the potential for exponential growth.
I’ve been penny stock trading for more than fifteen years, and in that time, I’ve turned $12,415 of my bar mitzvah money into more than $4.2 million in trading profits. I like to challenge myself, but I’ve already reached my goal of becoming a millionaire. Now, I’m turning my focus to teaching. My new goal […]