Nasdaq Dip Buys

 
PANIC DIP BUY (PATTERN)
 
I think it’s important not just to look at the morning panic itself, but the days leading up to the morning panic. 
 
MATT MONACO:::::: panic dip-buys happen after stocks uptrend for multiple days.......  they're called 'multi-day runners'...... once that happens the stock tends to pull-back......... to pick the bottoms, watch LEVEL 2 (bids and fills). . . . . .  .
 
QUESTION: How do you balance between getting in too early into the panic, and then also the opposite, which is hesitating, and then you end up missing the bottom?
ANSWER: It’s tricky to try to catch a falling knife. If you go into the kitchen, bring out a steak knife, and try to catch it — you’re going to end up with bloody hands. I don’t suggest you do that. 
The same goes true with this. I didn’t know if the bottom was going to be 30, 20, or 10 cents. When there’s absolute panic, it creates a tsunami of sellers. The previous night, I actually gave a webinar to my Challenge students, and a lot of Challenge students were trying to think that the bottom was 30 cents. 
I was like, “Don’t say that the bottom is 30 cents. You have no idea where the bottom is.” As it turned out, if you bought in at 30 cents, you would have lost roughly 30% in a minute.
So you can’t go in with an expectation of knowing where the bottom is. You have to let the stock play out. You have to learn to react instead of predict. And like I said, around 22 cents is when the turn happened in the Level 2. The bidder solidified, and there was a wall of buyers. 
You can see that giant red candle of volume too, in that one minute, it traded six million shares. So you had max panic selling price-wise and also volume-wise. 
That’s usually a good indicator when a lot of people use a stop order. So if they’re in the stock and the stock is at 45 cents, and they’re like, “Well, I’m not going to be able to watch it every minute, so I’m just going to put my stop loss at 30, 35, or maybe even 40 cents.”
What happens? It doesn’t matter where you put your stop loss. That doesn’t guarantee that you’ll get that. So the stop losses are getting triggered at 40 cents, 35 cents, 30 cents, 25 cents. It creates this tsunami of sellers that pushed it all the way to 22 cents. 
Even if you put your stop at 35 cents, by the time you get filled with your order, you might’ve sold it at 22 cents — the worst point. This is one of the reasons why I don’t use stops. I use mental stops because the market makers will just screw you.
 
Key Point: Stop Orders Are Dangerous (And … Don’t Try to Catch a Falling Knife)
Tim keeps mental stops but doesn’t actually put stops on his orders. When panic starts, it can take out stop losses fast. As a trader, you want to be able to get out. With stop-loss orders, it’s out of your control. 
At the same time, stop-loss orders getting taken out is good for dip buyers. It’s exactly what creates the best dip buying opportunities. But don’t try to guess the bottom. 
 
QUESTION: When you entered, what do you risk off of? That can be tricky too.
ANSWER: For me, I’m looking for that first turn into Level 2, which I saw. But I didn’t know that I was picking the absolute bottom here. 
As it turned out I was, but I sold in the high $0.20s. You’re just never sure if the bounce is going to turn around. In another four minutes, what if it goes down to 10 cents? This happens so quickly, so I make snap judgments where I think that this it’s going to turn around. 
When the stock is down from 50 cents to 20 cents with good news, eventually you’re probably going to have some good dip buyers. So it’s a combination of logic along with Level 2 and a lot of experience. Like I said, I’ve seen hundreds of these, so I know what the price action looks like microsecond by microsecond.
This is why when I’m in a position or when I’m watching a stock, I’m only watching this one stock. I want to see every single trade. I want to be meticulous. 
Too many people, even if they’re watching a stock, they’re distracted, they’re watching seven other stocks. All my focus is on this. And my whole life for the past two-plus decades has been focused on patterns like these. 
In my early career, I used to short sell this. Like I said, there was a tsunami of sellers. That was fun to surf, right? As a short seller, with all the other sellers and if you’re already short, you’re just profiting. 
Now, after 20+ years of trading, and now 10+ years of teaching, I gravitated toward dip buying these. I think it’s a lot better for newer traders, it’s a lot easier. There’s money to be made both ways. So I encourage you to try short-selling or dip buying, try both.
 
QUESTION: I think a hidden bonus lesson here too is the importance of trading these stocks, especially OTCs instead of investing in them. The day after this, DECN ended up getting halted by the SEC.
ANSWER: That’s the thing, you can never believe in these companies. You can never believe in their technologies. You can never believe their press releases. You can never believe their management. Think the absolute worst. Think about the worst person in your life, the most evil person who lies, who’s just bad, who deserves to go to jail, who deserves to go to hell. That’s what these companies are. 
The good news is because you have that hopefully cynical approach, you’re not going to hold this stock overnight, first of all. 
This is a first red day pattern. So if you’re going to hold this overnight into the close, this was a potential short. I have several students who shorted this and now they’re going to bank when the stock reopens after being halted. The SEC cracks down, they can’t do all their sketchy stuff anymore.
 
Key Point: Penny Stock Companies Fail — So Trade But Don’t Invest ============= Penny stock companies are the worst of the worst. 99.99% eventually fail. Expect the worst and you’ll never be disappointed. 
 
You want to focus on multi-day, multi-week winners. Those are going to offer the best potential crashes and the best potential bounces. You’ve got to think all the people who were shorting DECN — they’re going to buy to cover their shorts after a big crash. 
That’s how they take profits. Then you’re also going to have the cheap people who didn’t want to ride it on the way up. Now all of a sudden they get a 60% off sale. It’s like Black Friday for them, so they’re going to take advantage of that sale. So you have two groups of people, it’s in their own best interest to buy after a 60% drop. So that helps it too. It’s just logical.
 
Key Point: Focus on Multi-Day, Multi-Week Winners ============ Think of it like a rubber band. The more it stretches, the better the chance of it snapping back. So if you focus on multi-day winners, it’s like watching the tension build. The better the run, often the better the panic. Remember it’s not an exact science.
 
The morning panic dip buy is my favorite pattern. Like all my patterns, it’s not an exact science. But this is one of the best patterns for newbies and those with small accounts. 
The great thing about a panic dip buy is that you can watch the stock on its run up. You can sit back and wait for the panic. 
 
 
I don’t like to be in a stock when the news hits. You have no idea what’s gonna happen or how the market will react. So I avoid it. I’d rather buy the rumor, take my single, and wait. Then I can react when the news hits and the stock starts to move. 
 
First, there's a positive press release. . . It hints of progress on an exciting new product or service. The stock runs … and then when the actual call happens, there’s a big sell-off. 
 
There are a lot of reasons a stock might sell off fast. Not all are a good reason to dip buy. For example, I don’t dip buy offerings. Sometimes they bounce, but it’s not worth the risk for me. . . Whatever the reason, your goal with panic dip buy is to prepare and be patient. 
As always, it’s OK to be wrong. But always follow rule #1 and cut losses quickly. 
 
STOP LOSSES CONTRIBUTE TO PANICS (DIP BUY OPPORTUNITIES)
Traders using STOP LOSSES — at least in part — make panic dip buys possible. 
when stop losses go off it creates a tsunami of selling. If you’re long, it’s really difficult to get out. If you’re using a stop-loss order, it’s out of your control. 
 
That’s exactly what creates the best dip-buying opportunities. But don’t try to catch a falling knife. That’s not to say I’m never wrong. Sometimes I buy into the dip too soon and take a small loss. Other times I wait for the turn to prove itself before getting in and miss the bottom.  
Remember, you don’t have to be first and you don’t have to nail the bottom or the top.   
 
99.99% of these companies will fail. Those that survive go through a process of financings to keep the lights on. It’s very rare that a penny stock company turns into a real, profitable company. 
 
HOW TO FIND DIP BUYING PLAYS
Task 2: Identify/Paper Trade a Potential Panic Dip Buy
Using your scanner, find the top percent gainers from today (or the most recent trading day).
Use the knowledge you’ve gained today to find a potential future panic dip buy. (Review Day 13: Penny Stock Framework if necessary.) If possible, find more than one potential panic dip buy. Add these stocks to your watchlist and watch for the next few days. See if a big #4 panic followed by a #5 bounce happens. 
 
 
True or False? Every panic is an opportunity to dip buy. 
            * False: You can’t predict how far a stock will fall. If the catalyst is bad enough it could be like trying to catch a falling knife.
 
Which pattern leads to the most consistent dip buy opportunities? 
            * Multi-day or multi-week runners.
 
How do stop loss orders make panic dip buys possible? 
            * Naive traders use similar/same stop loss orders. When stop losses are triggered it can turn into a tsunami of sellers.
 
Tim often says “Expect the worst and you’ll never be disappointed.” Why?  
            * 99% of penny stock companies fail.
 
 
 
DIP BUYING VIDEOS OF TIM SYKES' ---------- https://www.timothysykes.com/blog/do-this-every-morning/ ...........
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Key Point: It’s Not Enough to Memorize a Pattern ========== Trading isn’t just about memorizing patterns. It doesn’t matter if you’re shorting, dip buying the panic, or any other pattern. It’s about observing it, stalking it, and understanding the nuances. This can help you adapt and modulate your trades.
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My favorite pattern right now is the panic dip buy. Whether a stock is up on positive news, being promoted, or in a massive short squeeze… 
I prefer to buy the dip when it crashes. The lesson here is that promoted stocks often bounce the same way a supernova bounces. But you need to understand more than just the pattern… 
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We’ve talked a lot about dip buying morning panics. I never used to dip buy morning panics. I would always ride them short and be the one covering into those crashes. But now, over the years it’s gotten easier just to wait for the dip buys. It’s gotten easier for students to do that.
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I know Tim Grittani, for example, keeps detailed spreadsheets. How did morning dip buys do over the past seven morning dip buys of stocks that dropped 20% or more? How much do they bounce? He tracks it. Even if he doesn’t trade the stocks. 
A midday perk has been a recent pattern. So, how are stocks that are spiking up with news around noon spiking? Are they spiking an average of 10% or 15%, or lately, is it up 50% or 70%? 
What’s the volume? What’s the market cap? You start getting sweet spots in terms of volume, market cap, time of day, different patterns. And you can see stuff go in and out. 
It might sound overwhelming and complicated in the beginning, but this is not rocket science. There’s not more than maybe two dozen different strategies even possible with penny stock trading. And you can really narrow it down to two or three strategies working at any one time, max.
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MATT MONACO: Another way to look at it is these patterns go through cycles. Sometimes they’re just not working well enough for you to come out of retirement. And then once you see a couple of them work, you’re like, “Wow, the panic dip buy pattern is really working these last couple of weeks.” And then when the next one comes, you’re going to come out of retirement because you’ve seen it work recently.
TIM SYKES: 100%. When a pattern is on, you want to push it. When a pattern has worked two, three, four, or five times in a row … other people are partaking in that pattern too. So it becomes a self-fulfilling prophecy. 
If you see four morning panic dip buys, and you’re trying to take advantage of all of them … But somebody who might not be as prepared or as skilled missed the first three. So they’re like, “Next time, I promise.” Then they go bigger because they have that FOMO, that fear of missing out. That makes the morning panic dip by bounce even better the fourth time. 
No different than with sympathy plays where let’s say you have one coronavirus spiker that makes a test for animals, because now animals can apparently get coronavirus. So now one company makes a test for animals. Then another company might make a test, and that’ll start spiking. 
So it’s very good to look at what’s happening recently with patterns, with stocks, with sectors. The second time or the third time is oftentimes the best, most predictable. The first time — sometimes it’s tough to get because it’s a new pattern or maybe it’s a new sector. But after a few hours, or a few days, or a few examples, it gets easier to see.
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STRATEGY ------------ Unusual volume brings unusual price action.................Low float stocks with news breaking through key levels that previous day's highs.......... all these things......... it repeats and repeats and repeats............... you might have to wait a day or two........ but they will come back............ Now, if the stock drops (which it might) ---- the stock is up 300% in two days,   if it drops, it's not a buy......... you're not looking to dip buy these things........... you're looking for strong stocks.......... Otherwise, (if it falls apart) there's no trade........... You're not looking to buy into that fading action........ don't try and buy weak stocks............. you want to buy when everyone wants in and when everyone wants in is at 2 pm, on the high volume spike........  -Tim Bohen
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QUESTION: can Level 2 assist in the entry and exit points?
ANSWER: typically, the stocks that you're looking to dip buy are the OTC stocks... a dip-buy is a stock that has been up-trending for days or weeks, and has been Green everyday for days and weeks.... and it's an OTC stock so it's sketchy.. so let's say it's gone from $1 to $4 in a month (green every single day, for a whole month). . . You come in and see the stock drops 40%. . that is a stock you are looking to hypothetically dip-buy, b/c the idea is it's been up-trending for so long, people are going to add into that dip (they're going to add to try and prop this price back up). . So what you're looking for in Level 2, you're looking for that big candle drop (red candle), then you're going to watch that Level 2 and watch those big bids coming in to buy-in. . .  any stock can bounce, but if you're trying to dip-buy an OTC stock with no big size on the bid, you're playing with fire........ So look for big size on the BID (for that buy-point)......
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STOCK FRAMEWORK -------- you can actually track how well they'll do in the different stages............. #PennyStockingFramework 7-steps....................................... i love the big crash (#4) because then I'm looking for the BIG BOUNCE (dip buy) which is the #5 (especially on a recent multi-day runner) which is my single favorite pattern right now...........
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I don't want to buy Random Patterns or at Random Prices. EVERY trade I do should be based off a breakout, a dip at/near support resistance levels..... The chart has to have a breakout or breakdown for me to be interesting in playing it...... -----and if the breakout or breakdown doesn't continue properly, that's when i cut losses quickly
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With low-priced stocks-------- do not be looking to dip-buy... look to buy breakouts......
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Don't underestimate the importance of morning spikes........ i don't want to chase it though......... i want to see if it's just a fake out or if it's real or not........ it comes down... then it starts up-trending, and i was buying it right as it was making a second test on the day high....
That's why I really prefer dip-buying, because it's not as risky... potential buys, if they start up-trending with volume........
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I love dip-buying superNovas, i love trading supernovas, as long as they fit my qualifications.......... I'm not gonna dip-buy the supernova that just keeps dipping and dipping because idk where the bottom is........
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THE BEST DIP BUYING CRITERIA TO BUY
- had a morning spike
- is uptrending near that morning spike
- has volume
- is 50% off the highs
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On playing %losers stocks, Sykes says: "I don't ever really want to buy a stock that's down 11%.. that's going in the wrong direction... i know some of you guys think '''oh lets dip buy it, this is a good time''... again, i like BIG PERCENT gainers.. I don't like LOSERS, because they're frankly just not predictable (not as predictable)... and I don't want to short-it because you could get another spike where it spikes a dollar a share in 10 minutes, so the risk-reward on shorting it is terrible....
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#5: Dip buy - sometimes the bounces can only happen for about an hour. . . 
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QUESTION: should you short the collapse, or buy the dip?
ANSWER: sometimes the dip-buy doesn't work,. . sometimes it keeps going down. . . it really comes down to looking at Level 2. . . . you look and see when the BIDS are getting stacked up on Level 2. . . So you really have to use Level 2, and support levels to try and see where a stock is going to stop dropping. 
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Watch “pennystock framework” dvd --- CD 5 -------      min 44:30 ----- on dip buying #waves
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#5 The Dip Buy -------------- starts at Minute 48:30 --------- PSFW Part Deux – Part 2 ---------- https://members.timothysykes.com/lessons/psfw-part-deux-part-2 ............
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WHEN TO DIP-BUY (IN THE MORNING, RATHER THAN MID-DAY OR AFTERNOON)
You just basically have to watch a stock that goes up two, three, four, five, six DAYS IN A ROW..... the higher it goes & the more days it goes up -- ideally the bigger the crash.... ideally you want that "morning" panic... i don't like dip-buying in mid-day, i don't like dip-buying in the afternoon.... there's something about buying right near the market open that gives you true panic and gives you true bouncability.... if the bounce doesn't materialize, you simply get out for small gains or losses... -Sykes  #DIP-BUYS
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The earlier in the morning the panic happens, the more reliable the dip-buy bounce..... Look for 20%, 30%, 40%, even 50% or 60% drops within a few minutes and no negative news..... Much of the selling (creating the panic) is due to STOP LOSSES, which are computer generated orders triggered on the way down at different prices by longs looking to "protect" their gains... all of this creates great trading setups if you're prepared/quick to capitalize (on the dip-buy opportunity that happens after)...... -Sykes  #DIP-BUYS
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You're looking for a 20%, 30%, 40%, 50% drop within a few minutes....... ALL OF THESE PLAYS, btw, they're not just dropping 50% out of the blue --- they have BEEN UP FOR SEVERAL DAYS and SEVERAL WEEKS beforehand.... it is a short-term price aberration that you are taking advantage of.... [because you know other people want to dip-buy, and short's want to buy to cover = and all of that is gonna lead to some bouncing..... [how big the bounce, you don't know] [where the bottom is exactly, you don't know] ---- but you do know that all of this leads to substantial gains all within 15 minutes, 30 minutes, an hour, sometimes 2 or 3 hours... -Sykes #DIP-BUYS
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10:30 am is an ideal time for a stock to bounce (dip-buy)..... -Sykes
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PART 8 -- Penny Stock Framework Part Deux -- https://members.timothysykes.com/login -- username: saloul10@gmail.com -- password: pduyygaj
min 9:30 ------- the first 15 minutes of the day is the time Sykes is looking to dip buy......... 
min 12 ------- sometimes the bounce is in 10 minutes, sometimes it's in 40 minutes.........
min 12:50 -------- the best way to play dip buys..........
min 13:30 ------- needing to not have 10% losses......... do not hold money
min 18:30 ------ no reason to dip buy 2nd or 3rd crashes of the stock (b/c there will be no bounce; promoters don't support it)...... importance of studying the past to understand the variety of various different outcomes....
min 21:45 ------- when the bounces fail, it can be MADNESS......... any stock can spike in the future at anytime, but the odds of it happening are not good..... the way I've made millions is by focusing on HIGH ODD setup..... otherwise you're either going to lose small, lose medium, or lose big..... when it does give you a win($), you're then learning the wrong lesson! The first crash / bounce is the best dip buying bounce to buy..... the second crash, and the third crash, you just usually don't want to dip-buy that....
min 26:15 & min 30 & min 35 ------ the patterns have not changed one bit (studying the past is key)..... it is staggering......
min 27:30 & min 30:30 ------ snip tool the lie of the sentence he highlights, regarding the pump & dumps.......
min 28:40 - min 31 -------- how pump and dumps happen #verbatim....... 
min 33:30 ------- shorting and dip buying ----- the best traders do both..........
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Dip-buying into 40m+ volume support has really good risk/reward........ TRACK this pattern's REWARD (that's really important) when it's volume is 40m and it holds it's support...... If it breaks out of the support volume of 40m, how far will it go??? that's the key question when tracking this pattern.... -[Dux commentary]
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WHAT TO TRACK (Dux doesn't track the multi-week, nor multi-month, nor multi-year STATS (it's too much info). He only tracks the MULTI-DAY PATTERN structure)
1. you only need to track when a stock is breaking out on a SPECIFIC VOLUME (tracking volume gives a clear edge)... if the stock is breaking out on a volume of 40m+, that goes to my statistics book because those breakouts tend to hold a lot better than really small volume breakouts...
2. Also track how far the stock dips after it's broken out, so you can buy the dip-buying rebound spike.... Track the average area where the stock dips too, and how far that is from that nearest support level below it..... The multi-day breakout is a swing-trade type of trade. It's not about day-trading... track for 1-3 days.... when the multi-day breakout pulls back, how far do they pull back to the support area (it doesn't always pull back all of the way to the support area when there is high volume) -- figure out where the stock actually reaches in it's dip (after it's broken-out); track the average dip the stock has (b/w the actual area to buy the dip buy where the stock ends up going back up, and the support area where the stock never reached when it was dipping -- how far are they from each other....so that the next time it reaches the dipping point, you'll know where you can expect it to spike again (prior to it failing to reach the actual support area).... (track this; Min 50:45 of PART 4)... then also figure out the maximum gain of the spikes (so you can evaluate what your max profit potential is when trading the setup)... 
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When you dip-buy into SUPPORT, you don't want to actually dip-buy at the support level -- YOU WANT TO DIP-BUY A LITTLE BIT ABOVE THE SUPPORT AREA PRICE (track where exactly to dip buy above the support level to know where best to enter the dip-buy trade in reference to it's support level!)... -dux
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If a stock can hold it's pre-market gains ALL DAY, that means the stock has extra strength... so long-term bagholders are actually sold and there's enough dip-buyers to push the stock to close very strong (relative to the OPEN).. and that's a very bullish signal/factor... -Dux
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When dip-buying OTCs, they usually have a decent bounce of around 30% - 50%..... -Dux [source: Min 3:31:00 of "Part 2 ORIGINAL" vid of his Trading Techniques DVD]...
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On NASDAQ, there's 2 ways a stock can lose momentum .. [1] it is over-extended for days where it forms a double top.... [2] a failed morning spike...... both giving good opportunities for dip-buying... -Dux
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You typically want a ROUND NUMBER to dip-buy into... -Dux
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NASDAQ has a higher winning percentage than OTCS when it comes to dip-buying b/c the NASDAQ stocks aren't as manipulated as OTCs... -Dux
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When you see a stock drop/dump toward the close... and it holds it's support level of the dump during afterhours and pre-market >>> if there was high volume (in the previous day), then it will have a morning spike of sorts (dip-buying opportunity) if there's also heavy volume the next morning... -[Dux commentary]
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When a panic DOESN'T CRACK TOO MUCH and has MULTIPLE BOUNCES [more than 2 bounces (when the stock panics at a slow pace)] -- then you know there are buyers (lots of dip-buyers)... That is a bullish factor.... If you're shorting, then you need to start covering your short-position and switch to longing.. -Dux 
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*don’t* DIP BUY earnings winners after they panic #risky #dip-buying. –Sykes
 
 

 
I don't like to dip-buy one or two day runners, but if it's a stock that's been running three, four, five, six days, and you get that panic (that's due to the inefficiencies of people being unable to sell, that creates a mountain / tsunami of sell orders that creates a panic that's worth dip buying... -Tim Sykes
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Min 5 ------- the pennystocking framework presented by Huddie --------- www.youtube.com/watch?v=yQwmdpYrLV0 ..........
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When there's a 1,000% runner, you gotta keep track of it, ESPECIALLY on day 2 (off it's morning panic on Day 2, dip buy it's morning panic). . . . -Tim sykes #dipbuys
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The 11am bounce is usually a little slower, and a little choppier -Tim sykes #dipbuy 
 

 

Matt Monaco's favorite NASDAQ(listed) longs
• dip-buying... [dip-buying listed stocks is much, much more difficult with NASDAQ and I don't think the edge is really there -Monaco].. 
• afternoon breakouts with VWAP involved (when the stock holds VWAP into the afternoon) -- a breakout like this on a listed stock is also incredible.. This pattern is also known as  the "ABCD pattern"; referenced in Grittani's Trading Tickers 2 DVD as the afternoon breakout pattern.. Monaco says he usually doesn't swing this pattern as much unless there's some crazy sector momentum which comes and goes depending on market conditions...
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DO NOT SCAN FOR TOP %LOSERS ---------- TOP PERCENT LOSERS, scares people away (i.e. thus it will not have dip-buying opportunities as much).....   you will find a better edge in a stock that is trading with much more volume (%gainers draw attention and excitement)... -Dux commentary #SCANNING

Dip-buying is a better strategy for newbies..... shorting is very dangerous.... -Sykes        #DIP-BUYING

Look at the biggest # gainers over 1 day, 3 days, 5 days ago... Look at the biggest morning panics that might potentially (be a good) dip-buy... -Tim Sykes #WATCHLIST

HIGHER #VOLUME SUPPORT = HIGHER DIP-BUYING ODDS
The more volume there is at the support level, the better the opportunity/probability for a successful dip-buy...... -[Dux commentary]
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I like dip-buying earnings winners (when there looks to be support). . . -Tim Sykes

USE THE EMA(20) TO BUY CONTINUATIONS AND BREAKOUTS::::::::::::: The EMA(20) is a great indicator for me to use for swing trading bro.. When the stock goes above EMA(20), it's a buy. Then take my profits / set a trailing stop loss ABOVE it's EMA(20) spike/rising at the area where it meets resistance... The stock will either break through resistance for a BREAKOUT whereby i buy into it at it's BREAKOUT level.... or, It'll meander back down to touch base at the EMA(20) line, whereby I can buy more shares from that point forward again, for another ascending play as a DIP-BUY CONTINUATION. #SwingTrades

MARIANNA trades morning panic dip-buys ......... this is her forte....

When the market is recovering (from a bear market), that is when it is the best time to buy DIPBUYS. That is when the market has the most plays and everything is going up hundreds and thousands of percents, especially between April and October. -Dux commentary #seasons #environment

To catch big biotech runners, your best odds are to catch the first-day move. When biotech companies announce news, that can bring in high volume and hype... -Bohen #biotechs #breakouts #dipbuys #chasing #fomo

Dip buying for instance is a great pattern because there's an opportunity for that often after a stock has been up for three, four, five, six days.

Min 2 ---------- 2 patterns that work 85% of the time -------- (1) first red day ........ (2) dip buying huge panics ----------- youtube.com/watch?v=Li3-NwAj6t4  ................ #PATTERNS

Earnings winners, contract winners, breakouts, dip buying, cutting losses quickly, buying billionaire plays --- yeah that's pretty much it.. it's not that complicated if you put it all in one sentence..... -Sykes

----dip buy earnings winners if they hold above that key technical support (draw the line.....use the latest top as a bottom).

Morning dip buys in the morning (circa 9:45), morning spikes with news, multi-day breakouts [Sykes doesn't like first green day BIOTECHS] --------- these are the patterns sykes likes ........ Get in tune with the patterns, and then SCALE UP ------------ www.youtube.com/watch?v=B_8YgFMq3TY ...........

                [an OTC gapper for four days in a row ... Once the stock has gapped up, it goes red and crashes hard. Look for the turning on the level two … They see bidders step in and a green candle on the five-minute chart. That’s what traders key in on].

Strategy---------- When stocks drop 30-40-50% off their highs, they are dip buys...... i don't care how much you hate the company... -tim sykes

Min 12:15 -------- for me, i like dip-buying EARNINGS WINNERS and CONTRACT WINNERS that have already spiked huge, and have come down and i'm trying to buy for the bounce, espcially *when there is the right [press release], a low [market cap], and when i'm buying them significantly off their highs so there's not much risk because theoretically there should be support right around where i'm buying, and i cut my losses quickly ------ youtube.com/watch?v=nUWT8QJ_YPw ...... #dipBuy #sykes

5. If you don’t want to short sell, how can you safeguard yourself in a bear market? You can look to dip buy extreme drops. Moreover, cash is your best friend in such times, as at the peak of the bear market, stocks are available at dirt cheap valuations. You can stagger your purchases to make the most of the fall in the bear market.

1) Dip-buying morning panics on recent supernovas (MORNING DIP BUYS)....... the bigger the drop of the stock, the higher it will bounce

I think that it's important to try different patterns.... always be tinkering, optimizing, refining...... dip-buys might work.. maybe not though, trading is not an exact science.. you can never get too cocky... the market will humble you very quickly if you ever think that way... I really craft my trading for what's best for me..... and i think you should too.  -tim sykes

When a bioTech drops 60%, 70%, 90%, i say that that's "bad sushi". . . -Tim Sykes          <------"Biotechs ARE NOT dip-buying opportunities" -Bohen

Large caps that have morning panics don't have to bounce (become dipbuys)... It doesn't have to bounce. It has a huge float, and there are smarter and richer traders in it than you. It can continue lower for weeks. And it’s susceptible to reactions to macro news and trends. Large-cap earnings losers could continue to go down for weeks, or they could chop around and consolidate before going lower or higher. So here’s what I think traders should look for before getting in too early… I want to see these beaten-down stocks trade sideways for weeks — not days. I’d like them to put in a nice base to use as a risk level. Then once they break out of consolidation to the upside, you can look for an entry and risk the consolidation area lows. Base your plan on 2:1 or 3:1 risk to reward for a swing trade idea. #largeCaps #swingTrading

Let me be clear: Biotech stocks are not DIP BUYS.

-I'm thinking i should start with breakouts trading (as my first pattern to master)....... do breakouts happen MOST OFTEN than any other opportunity? .......... are there a lot of videos to watch regarding breakouts, that i would have to learn from, or do breakouts all follow a similar pattern of sort (my distinguishing factorings being based on actually tracking the way Dux does (i do this for breakouts) in terms of market cap, volume, price, and so forth............... [definitely watch dux DVD Trading Techniques before i begin trading to take cohesive ideas from him]..................... breakouts will then inevitably lead to me being able to (track) and trade DIP BUYS, which always happen after breakouts happen........... breakouts being Sykes' FRAMEWORK STEP #3 [supernova], AND FRAMEWORK STEP #5 [dip buy] ............... #OTC breakouts specifically would be GREAT.

the morning panic dip buy:
• Dip buying huge morning panics – whether it’s an overall market or sector panic, there are always great opportunities to dip buy intraday panics. If a stock drops significantly in the morning and is oversold, it could bounce back strongly so you can capture a quick 20-30% gain. When dip buying panics you should prepare to cut losses short if the trade goes against you. Otherwise, it’s like catching a falling knife.

 
The faster the stock drops, the more likely you are to get a bounce. (a stock going from $40 down to $19 within 30 minutes or an hour presents a good dip-buying opportunity)... Note however, that the support has to consolidate with a lot of Volume for you to dip-buy it... -[Dux commentary]
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Min 4:30 --------- Min 8:40 -------- Min 17:20 ---------- NEVER dip buy a late day panic......... That's not one of the patterns...... it's how Mariana lost $53kin one day -------- Dipbuys in the mornings have ALL DAY to try to bounce; but afternoon dip buys lead to morning panics the next day, so never dip buy in the afternoon -------- www.youtube.com/watch?v=xDbcStOuEbw ............
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Min 6:45 -------- 3 different ways to play dip buys: [1] you can just go for the quick panic dip buy and the bounce; [2] it doesn't work and you keep adding until it bounces (if ever); [3] you buy it, you cut losses, you buy it you cut, you buy it you cut thinking it has to bounce sometime so you take small losses until it bounces (if it does)  -------- www.youtube.com/watch?v=xDbcStOuEbw ..........
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Min 18:15 -------- Mariana likes buying panic dip buys, and also likes breakout buys but is more conservative on breakout due to her personality traits -------- www.youtube.com/watch?v=xDbcStOuEbw .........
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LOWER #MARKET CAP = HIGHER DIP-BUYING ODDS
If the stock is uptrending (with good momentum), especially after the First Green Day performs a breakout, and goes parabolic in the afterhours or into the 2nd green day, you want to note that if the market cap is really small initially, then you have greater potential to get more reward by dip-buying or buying the breakout from the consolidation area..... The smaller the market cap is, the higher the stock tends to run (100m market cap = small market cap)... -[Dux commentary]
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Min 3:23:00 ---------The mentality of dip-buying Nasdaqs and OTCs ---------- PART 2 --------- www.stevenduxi.com/trading-techniques-video-course/?_login=ddc225352a .......
 
 
 Multi-day runners (LONG)... When a stock has had multiple runs and shows signs of a first green day, Sandeep keeps watch. Often, on the second or third day, there’s an opportunity for a dip buy…