I hope you are all enjoying the weekend and fitting in a bunch of studying! Thank you all for you attention with Australia! Please keep spreading awareness as this is still a very important issue. Make sure you head over to Karmagawa.com to donate directly or purchase some merchandise. There is apparel in the making where you can preorder apperel that says “Save Australia” make sure you go check it out! Proceeds go towards helping Australia. Thank you!
Since $TRIL, I have been asked many questions on how I “knew” it was going to go “Supernova”. How did I “know” to hold that stock overnight. How did I “know” it was going to breakout. What is my “secret”, etc. I promised to write this blog so I could go a bit more in depth than a few Twitter comments. Below I will show how I have learned to Identify breakouts by signing up to Timothy Sykes Millionaire Masters Program/ Smallcap Millionaire with access to his 6k+ video lessons https://bit.ly/3a8T4Ki (My results are not typical. I spend every day studying from Timothy Sykes. Don’t invest anything you aren’t willing to lose). I also find all my stocks thanks to Stocks To Trade. The photos in this blog are thanks to this amazing software.
So here it is..
I wasn’t planning on trading that day. But as a study addict, I had to check out the markets before closing. I looked over to the left of my Stocks To Trade software at my Top % Gainers list and I saw $TRIL. I thought, “Hmm.. That stock sounds familiar.” I clicked on it and saw it was closing near its highs. Next my routine is Checking Multiple Time Frames. I always look at the 6 month chart to see its recent history.
As you can see there is a clear uptrend. When I was looking at this stock there was no second Green Day where you can clearly see the breakout. Imagine that wasn’t there. Put your finger over that last Green Day and you’ll see what I am looking at. The Magenta line at the top was my sell line or potential breakout line. It had potential of being a double top. I didn’t have a crazy goal of making several dollars a share. I am learning to take singles and focus on % gains instead of anticipating home runs as that is what grows your account over time.
I went as far back as the 2 year chart when I found past history of spikes. From everything I learned from Timothy Sykes and learning to identify support and resistance zones from the Complete Penny Stock Course by Tim’s Student Jamil Alluch, Tim wrote the forward, (found on Amazon), I added the magenta colored lines as potential support (where I anticipate the stock to hold if it were to dip; my stop out line (where I would cut my losses had the breakout failed); and my resistance lines (where I thought the stock might stop once it spikes). As you can see the stock performed WAYYYY better than I anticipated.
So why did I like this stock?
Look at the volume, it had a decent performance on that First Green Day on this recent runner; slightly below 8 million(still unusual volume), this stock has been in play lately., there is resistance around $1.74 from the previous day (not shown) and the stock is closing near todays highs in the $1.40s. The day before the photo below was the day where it had spiked into the $1.7s and that was where I based my resistance line. My goal was to sell into strength on a morning spike near $1.70s and sell into strength. I wasn’t asking for much. A simple 10-20% gain. Just as Tim teaches.
I wanted to wait as long as possible near close incase it panicked for a potential dip buy into the close or incase it panicked too much and I would just watch it the next day. I decided if it went below $1.43, then I would sell and take the loss. Well, I bought around $1.47 (my exact stats are on Profit.ly) and decided to hold overnight. I have watched thousands of videos and thousands of hours from Timothy Sykes and I am always learning to identify potential breakouts and strong First Green Days.
Here is the secret that so many want to hear. I have been studying my ASS off. And I am proud of doing so. The best tip I can give you is watching Tim’s videos (both YouTube and his 6k+ video https://bit.ly/2NpXYZC ), google stock breakouts and learn to identify the potential breakouts buy the book The Complete Penny Stock Course by Jamil Alluch, look at chart after chart after chart after chart after chart after chart after chart after chart after chart after chart … I could go on forever. Also, watch the market. Take screen shots and organize them into folders and review them. I have tons of screen shots regarding breakouts on multiple time frames. This has been very important and SO helpful for me. I no longer use spreadsheets. They don’t help me. I am visual not mathematical. You won’t see me calculating much of anything. I take a ton of screen shots and look at pictures. Practice drawing lines and see how the stock performs the next day. You don’t have to trade it, just observe.
For every one stock I watch, I have 2-4 others that I have on my screen that I am tracking to see how accurate I am at picking successful First Green Days, Breakouts, and Dip buys. This is how I track. I could care less about the spreadsheets. I am ALLLLL about pictures. I do have several spreadsheets but they haven’t been filled out in months and that is when I started focusing on my strengths and realizing that the spread sheets were not a strength. I didn’t understand my own statistics. I made the process super simple by focusing on my niche setups. I notice what I am good at and what I am not.
Also, for easy tracking, go through every trade that should be posted on Profit.ly (I post everything!) go through and put a tally mark on a piece of paper that has the setups listed in a triple T chart labeled Breakouts, First Green Days, Dip buys. Then go through EVERY trade and put a green tally on every successful trade in each of the 3 categories and put a red tally if they were losses in each category. This will give you an idea of what setup is working best or which setup needs to be focused on more. You can also review the setups and see if you were on the right track or if it was one of he outliers that just didn’t workout. This is where the screen shots really help.
This may sound elementary but I don’t care. It is literally K.I.S.S. to a T (Keep It Stupid Simple).
Below are some charts I have over my 6 months of trading (there are more breakouts over previous highs that I have missed or didn’t take screen shots of but here are a few).
See how I used to be unprepared here with CLSI and would go in and out of a stock. This is what you don’t want to do. I was learning how to identify potential breakouts. This had unusual volume. Yes, there was a Green Day before this stock really spiked but not too much super unusual volume. But it had a history of some spikes and was a recent runner at the time of this photo. You can see clear resistance lines at the double top. It could have the potential to breakout if there is a strong catalyst or lots of volume. You would want to zoom out further in history a few years to see if there were more resistance lines to add. I was learning so I wasn’t as prepared for this stock as you can see. There was too much guess work and emotional trading. This doesn’t happen to me like this anymore. Now I have clear goals, a set focus, and experience with these setups and what I look for. It has taken months of practice and reviewing hundreds and thousands of charts that has made spotting breakouts much easier for me. AND I am ALWAYS learning/improving!
This is what my inexperience looked like that day. Don’t be this kind of trader. If I remember right, I was having Internet issues which caused confused trading? Or I just sucked. I would have to look back at profit.ly.
Usually my support and resistance lines are safe to go off of. There are always those outlier stocks so be prepared to cut losses quickly if a trade doesn’t go as planned. But if you have a plan and stick to it, you’ll be alright (given you have a decent plan). $AXXA ended up being a double top but it had profit potential.
This is my second secret I will reveal. DO NOT LET NOISE INFLUENCE YOUR TRADING PLAN!!!! I have suffered from this many times and this is still a rule I am working on mastering. I have a problem of getting excited and telling people about my plans for trades. Well, people are always happy to explain their point of view on a stock too. They don’t mean anything bad by it and they don’t mean to influence your trading, so it is up to you to manage this risk. I start to consider the other persons’ point of view to the point I get scared out of my niche setups. Stocks I am confident in from doing my due diligence and am ready for I end up closing or take profits. I have done this because of the influence I allowed another person to have on me. Without them even knowing it! This goes for purchasing stocks or “following alerts” too. Yes, you may “get lucky” a time or two by listening to others, I am not saying every result is negative. But that doesn’t create self sufficiency. After all, we are here to become self sufficient.
I have learned to just scan over the chat room in the morning but I take it with a spoonful of salt. I like to be confident in what I am learning. So I don’t go looking for whose pick I can follow. I like to hear how people are learning. Then I block out what they say and focus on my stock. Sometimes I will alert it in chat. And as much as I love to read Timothy Sykes commentary to see if I am on the right track, sometimes I have to postpone reading it until I complete my trade. I am so proud when I enter stocks just before I get his alert and he is in “My Stock”. I like to compare. I train myself this way. Am I thinking like Tim? Am I learning the right strategy/setup? And sometimes I have to ignore Tim’s and everyone else’s alerts/messages as I get influenced to trade that stock/chase/follow or exit that stock. Then my plan is no longer MY PLAN. So weed out the noise. This comes with practice and experience. I am still learning to master this. Hence why I only took a small percent of $TRIL instead of following my initial plan. Also, it was nearing my profit mark and I wanted to lock in profits as I got scared out of it from friendly/innocent noise. LOL
I know this has a lot of pictures and is not a very mathematical approaches to identifying breakouts, but this is honestly how I go about my trades. I have had several trading friends try to teach me the math behind it, along with the book, but quite frankly I forget and it goes in one ear and out the other. Doesn’t matter how much I try with the math. I am too simple minded for it. I like pretty pictures and colors and if K.I.S.S. is true, this is what I believe it looks like. Make sure to try out Penny Stocking Silver to gain access to Tim’s video lessons galore https://bit.ly/2NpXYZC
Thanks again for another fantastic question. Feel free to ask more on my Twitter @TessaLamping and make sure to verify more of my trades and experience of Profit.ly under Tessa Lamping .
Happy Studying Traders, Cheers!
I am in NO way a professional nor do I claim to be. I do not manage anyone’s money nor do I want you to follow my trades. My posts are solely for entertainment purposes and for myself to become more transparent on my trading journey. I use these posts to track my own progress. I do NOT recommend you try my strategy or jump into trading without a verified guru/teacher. I am an untrained trader who has been practicing for a few months and a few days with paper trading on StocksToTrade. I am up +$7000 since the month of June 27th, 2019. By the time you read this I may or may not have traded the stocks I post about. I will not guarantee you will profit from trading as 90% of traders lose. To become consistently profitable is not a typical result. I am in NO way responsible or liable for your decisions or actions as a trader. I, again, am not professional so there will be grammar and spelling errors. Just because I suggest something does not mean your results will be the same as mine if you try. My suggestions are what I am doing, have tried, and what may have or may have not worked for me. Also, make sure not to invest with anything you are not willing to lose, Cheers!