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This is a very frequently asked question. And it’s a little difficult to answer I know you guys want a one size fits all answer. That’s not the way the stock market works. I highly encourage you to watch my trader checklist guide. It’s 11 plus hours going over like a sliding scale of how news and catalyst can help or sometimes even hurt a stock. But just generally speaking, I want to buy quality news, I want to buy quality companies. When a company reports good earnings and the stock spikes that is an earnings winner to me.
If a company reports good earnings, and I think that they’re good like, oh you know, I read that they were only going to report revenues of 50 million but they came in with revenues of 55 so I think it’s good earnings but the stock doesn’t react, that’s not an earnings winner. The stock has to react positively to show me that the news is meaningful. No matter what I think or no matter what you think about the news we can misinterpret. The stock market is king. So respect the market. So whenever there’s news always be sure that there’s a reaction.
Instead of asking me what is the right news that drives the stock, what is the right price action. And the right price action that moves the stock is a stock that is spiking. 10, 15, 20, maybe 30, even 50 or 100% in a day. Lately, we’ve been seeing 500% or even 1,000% or 2,000% gainers in one day in penny stock land. It’s a good time to be a penny stock trader. But whatever the news is making sure that there’s a reaction with the stock. The cool thing with penny stocks is that you have time, even if it goes up 10, 20, 30, 50, 100% in one day. It can go up that amount on day two as more and more people see the news.
That’s one of the benefits of being in the underfollowed niche of penny stocks. That does not work in other niches. Sometimes a big company like Cisco will report good earnings, it’ll go up 20% that day, and that’s the entire move. Okay, the company is up, the stock is up, then it does nothing for three months, that’s big-cap stock. So penny stocks I think you have an advantage, you have that timing inefficiency where good news can get priced in over several days. Just the other day I was buying TZOO, it was an earnings winner I bought it at $8.25 on a dip it had already hit $9.00 a share pre-market, so I thought that it could get back up there.*
Sure enough, it did. I sold, I took my profits of less than 10%, but it was good profits in under an hour now a few days later it’s over 13, so the stock is up another 75% in roughly a week on good earnings it was already spiking, they reported good numbers, it continued to spike.* That’s what you should be looking for. Look for big spikes and good news and continuation moves, so. Leave a comment underneath this video let me know if you understand this and please do watch my trader checklist guide. Also if you want more details I mean this is a generalized video. If you want more detailed videos to get into my trading challenge, okay.*
That is where I have all these unique video lessons one of my millionaire students; Mark Crook has 500-plus video lessons we also give weekly webinars, challenge students get between two and four weekly webinars.* So it’s pretty awesome that my millionaire students and I are all teaching.* And you have to keep up with this. Every day, every week there are new plays. Get with the program.
Hey, Tim Sykes: Millionaire mentor and trader.* Thank you for watching my videos. I hope that they help you. I want to share everything that I’ve learned over the years. You can check out more videos right over there. And also click subscribe so that you can watch all of these videos. Get that knowledge and become my next millionaire student.*
* Results may not be typical and may vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here: https://www.timothysykes.com/terms-of-service/.