Wow. What a day this past Friday (April 25, 2014). I stuck to my trading rules. Ended up holding only three position going into Friday morning, long positions in $LLEN, $BCCI and $BTCS. All for the intention of a gap up/ morning spike. I sold all three positions for solid profits. These were all predictable patterns in relatively liquid OTC stocks. I understand most people may not like trading OTC, but certain patterns can actually be very predictable. Here's a tweet showing my Thursday prediction.
Now remember, these were strictly GAP-PLAYS. Very different from making a swing trade. The plan was to sell within the first hour or so. Meaning for such plays there is no intention to hold onto them all day. The reason I make this distinction is because sometimes, stocks gap up and then fade through out the day when selling pressure hits. $LLEN was a good example of this. It had a nice morning spike up to $1.15. I actually sold a little too early on this one. But the stock later faded all the way down to as low as $0.70, before closing at $0.80. Remember, most OTC companies are frauds. $LLEN is no exception. But if you understand the right patterns, you can profit from the predictability. Below is a chart showing $LLEN action on Friday
So on the left is an intra-day chart on Friday (25/04) of $LLEN. As you can see, although it closed down on the day, there was certainly money to be made on the morning spike. Below is the intra-day chart from the previous day (Thursday).
As you can see from the chart, $LLEN had a very strong close. It actually closed very near its hod (high of the day). I made the call on the twitter the day earlier and was very happy to see people made money off my prediction.
Remember, stocks are simply trading vehicles. Always have a plan and be ready to take quick profits or cut losses when necessary. Good luck seeking alpha.
Follow me on twitter @rock_alerts for real time updates. See my twitter page for my disclaimer. I am NOT an investment adviser.
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