Penny Stock Soldiers (OTC tradeable tickers)/Momentum Plays

[ThePennyDoctor]

When gauging weakness, be overly cautious/conservative. Only keep loading on the best runs - focus on the executed trades list on ihub Level 2 and make sure the pattern is straight up and fast/a lot of volume. As soon as a run slows volume wise, the bid/ask spread gets large, and the executed PPS goes backwards two levels, I bail.

Don't worry about missing runs - worry about not having large losses. Eventually, you will catch a nice run (hopefully once a week) and those are very profitable. Be patient, and wait for low-risk high-reward trades; they always come in time, and when they do, you want as much capital available as possible.

Be careful with PMCM if the gap up is really high. If the gap fills and it bounces at Friday's close, hold out to make sure the bounce has legs. Often, a gap and dip can't reach the opening gap, which is a sure sign of a pending crash.