While UNXL isn’t a classic under $5.00 stock this one was extremely volatile like they normally are when trading penny stocks. I shorted 2000 shares of UNXL at 13.45 today when the stock got into what I refer to as the “sell zone.” You can learn more about the sell zone in my trading course. Whenever I am not trading penny stocks that are under 5.00 I look for fast-moving stocks with a real catalyst like UNXL.
Trading penny Stocks: Covering My Short in UNXL
About 10 minutes after I entered the trade I covered 1000 at $13.24 and then the remaining 1000 shares I covered at $13.00. UNXL should continue to pull back towards $12.30 before bottoming short term, but I was happy to take the profits of $750 profit on this quick scalp. My trading system helps me find these ideal times to pull profits out of the market regardless if it is a penny stock, or higher priced.
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