NXTD: The Penny Stock That Paid Me This Week

Last Monday was an eventful day in the world of awesome penny stocks… The overall market was down .80% but volatility is a traders best  friend.  This is the exact reason why I always look for specific setups in weak markets. Think about it like this. 3 out of 4 stocks follow the market. When the market is down more than .50%,I have found this statistic often rises to 85%! That means most stocks will exhibit  bearish patterns, but that still leaves 15% of the stocks. These stocks may experience what I call “relative strength”. This is not the technical indicator RSI but rather a measure of a stocks movement to the market. This is an important statistic to track because all stocks are correlated with the overall market. What I do is find the stocks that are moving inversely of the market and look for patterns. The good news is of the 15% of these stocks, only a handful will fit the bill.

NXTD was the stock I traded on Monday. NXTD isn’t an OTC but it certainly is a penny stock. Considering it posted a 65% gain on the day there’s lots of money flowing into these stocks. I bought the stock in the morning at $1.76 after it pulled back from the morning spike. Sadly I didn’t get a full position but none the less my position was still decent size. I sold 1/3 of my position at $2.20 into the morning slow down. Because I saw a spike in volume into the close I held 2/3 of my position. The buying volume continued into the after hours trading so I ended up locking in another 1/3 of my position for a nice profit. I held the remaining 1/3 of my position overnight in order to sell the stock into the gap up.

Check out the chart below:

NXTD 1

The following day the stock gapped up huge. Now of course I didn’t know the stock was going to move so much but that’s okay. You don’t have to know how far it will go, you just have to position yourself to capitalize. And that’s exactly what I did…I sold half of my remaining shares at $2.60 around 8:20 AM EST in the premarket because the stock was strong and the volume was as well. Near the market open I sold my remaining shares at $3.25 locking in a huge profit for a simple overnight gap trade! After I sold the stock it pulled back and then went a bit higher to $3.50.Fortunately I don’t need to pick tops to make big money.

NXTD 2

In the next chart you’ll see how the stock faded all day which is why the buy/sell zones work so well to time my trades. This is why it’s foolish to hold low priced stocks for more than a few minutes to a few days.

NXTD-3

I made about $8,060 on this trade and I only got a partial position. That’s a lot of money for a short hold of less than 24 hours. If you aren’t making money in the market you owe yourself the chance to try out my system right now. There’s no risk with my 60 day guarantee so you should check it out now: Get started

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