Price action today is choppy in the markets, after a strong start to the new quarter yesterday. How the general market behaves rarely matters in my trading.
You see, my focus is on penny stocks- often companies that trade for less than one dollar per share. My trading system works best for those who have small accounts. Last year, I returned 220%, 275%, and 600% on three small trading accounts using my system.
Now, despite what you might think, I got these returns from swing trading penny stocks. That’s right…my system allows you to hack the pattern day-trader-rule…
… it doesn’t matter how large (or small) your trading account starts out at…
… we will make progress together.
That said, while most of the general market is doing nothing today, bitcoin stocks are heating up. One day does not make a trend, but it’s worth putting a game plan together because these stocks can offer quick and dirty profits.
For example, check out my three-week, real-money results from trading bitcoin stock in Bitcoin Services (BTSC) a stock that trades now for about $0.03 :
(Building up a small trading account is one of the toughest challenges you’ll face early on, but it doesn’t have to be, click here to learn my system)
That said, if there is to be the next wave of Bitcoin stock mania, I want us to be ready.
Furthermore, I’ve compiled some notes on how to trade bitcoin stocks, putting together a watchlist, and a whole lot more… Read on to find out more.
Can Bitcoin Stocks Run Again?
Before you go out and buying all the Bitcoin stocks, or even Bitcoin itself… it makes sense to remain patient. You see, there are so many people out there still trying to value this cryptocurrency… and there will be euphoria. The last thing you want to do is buy a breakout… only for the price to pull back.
That said, I’m keeping a few Bitcoin stocks on the radar… and I’m watching these patterns closely.
I’m primarily focused on three Bitcoin stocks now:
- Bitcoin Services (BTSC)
- DPW Holdings (DPW)
- MGT Capital Investments (MGTI)
The last time Bitcoin ran… these stocks followed suit. That’s why we’re focused on these for now.
If you don’t know any of these patterns, check out this free lesson here.
BTSC Stock Chart
Here’s what we’re watching exactly in BTSC.
If you can see in the chart above, BTSC broke out of its bull flag – or bull pennant – pattern. However, it doesn’t really make sense to chase the stock on a gap up like this.
So what do we do with a stock like this?
Well, we wait for a pullback.
For example, if you notice in the daily chart on BTSC… you’ll see some squiggly lines… these are known as simple moving averages (SMA). What I’m thinking is BTSC could pull back and fill this gap up… and if it reaches the blue line (the 20-day SMA) – around $0.02… we’ll look for an entry. Thereafter, we’ll look to take profits at the green line (the 200-day SMA), anywhere between $0.036 and $0.042.
Could the stock keep running, and not fill the gap?
Of course, but I’m not one to pay up and pay for stocks… I wait for a clear level, pattern, or indicator to signal when I should buy.
Moving on.
I’m keeping an eye on another Bitcoin stock – DPW.
DPW Stock Chart
DPW has become a cryptomining company… and with this move in Bitcoin… it could pull DPW higher.
Check out DPW on the daily chart below.
DPW is shaping up as a bottom bounce candidate. In other words, this stock has sold off pretty hard, but now it’s found some resistance. That means traders are willing to buy around this level. Not only that, the stock has a large gap that goes all the way up to 70 cents. That said, if Bitcoin continues this run… DPW has the potential to fill that gap.
MGTI Stock Chart
Here’s a look at a third Bitcoin stock.
MGTI is coming off a double bottom pattern at $0.05. That means the stock found a bottom at $0.05… hit some resistance around $0.08… only to pull back into the $0.05 level. However, buyers stepped in, and held the stock above $0.05.
Once there was a positive catalyst (Bitcoin prices breaking above $5K again)… MGTI spiked. Again, I’m not going to chase this stock… I’m going to wait for a pullback because I only think it can run to previous highs at $0.12 and $0.14 for now.
Some other stocks I’ll be keeping an eye on are RIOT and MARA. Although these aren’t necessarily tied to Bitcoin… they are blockchain stocks, and they could run with Bitcoin. I don’t have a clear idea of what I’m going to do with these two names yet… but I’ll let you know if and when I do. If you’re still looking for Bitcoin stocks to trade, you can check out some of the competitors – or even scan for stocks to trade -on Finviz.
Also, if you need a refresher at how my system works, to make sure to check this out.
Source: PennyPro.com | Original Link