introductionOne of the key components of becoming a successful day trader is understanding how to find the momentum in the stock market already. If you have any experience in the markets, then you know that stocks will have big price moves solely because of increased volume. It's important to understand what causes these stocks to have an increase in volume so we can have better accuracy and consistency as traders. The day traders who lose tend to not understand where the 'hype' is in the market for that specific morning, and aren't able to get into the stock before its too late, eventually buying the top of these huge morning spikes.

Now, that's not to say that this is the only thing you will need to understand to become a profitable day trader; this is only one segment of the larger 'Three Pillars Of Trading' which include Technical Analysis, Trader Psychology, and Risk Management. Don't let your education stop at this book or else you will end up paying your tuiton into the markets as a form of a loss, rather than investing in your education and joining mentor programs and chat rooms that will benefit your trading and help you prevent clumsy losses.

I hope you enjoy this little book that I've put together that is a cumulation of my favorite penny stock trading strategy, buying low float penny stock morning spikes before everyone else!

When a penny stock sees an influx in buying

due to the release of some positive news event. These types

of catalysts happen often during premarket trading and after

hours, however do occasionally happen during regular

market hours.

When a stock sees an influx in buying due to

the completion of a chart pattern that traders recognize as a

buying signal

When a stock is running because another stock

within the same sector is running as well. The stock running

usually doesn’t even have to have any news, simply the fact

that it’s associated with the ‘hot market’ will occasionally

bring it volume. Some examples of this phenomenon are

DRYS, TOPS, DCIX, SHIP and other dry bulk shipping stocks;

whenever one of them has a big spike, the others usually

follow suit.

Almost every huge Penny Stock spike have a few key

variables and parameters in common with each other that

we look for to gauge how probable it is for them to spike.

The typical Penny Stock that my students and I

trade are stocks that are listed on the NASDAQ exchange and

are between $1.00-$10.00 per share. This price range is

important because a lot of small, retail traders flock towards

these plays, meaning an immediate increase in trading

volume.

: Float refers to the number of shares outstanding less

the amount held by insiders & long term investors. This is the

'rotating supply' of the stock, and plays an important role in

our penny stock 'Morning Spikes'

When we have an extremely large influx of buying pressure,

due to some technical catalyst, news catalyst, or

momentum/sympathy play, the price is driven up very fast

due to the low amount of supply. It's simple economics, if

there's more demand and less supply, the price goes up.

: This is the last piece of the puzzle and is absolutely

required for ANY penny stock to run! Without volume, there

are no traders. If there are no traders, there is no exchange

of shares, meaning no liquidity. The reason why stock prices

rise, and fall is because of traders; If there are more buyers

than sellers, the stock price goes up! If there are more sellers

than buyers, the stock price goes down!

You may be wondering, "Tony, why are you telling us how

these penny stocks spike so predictably?"

The real reason why, is because the more traders that realize

these patterns and act upon them, the more often they will

work!

Trading and technical analysis is a self-fulfilling prophecy; if

every trader in the world is buying at the same exact time,

there is an immediate influx of buyers that will dominate all

sellers, driving prices up.

This is exactly why these penny stocks spike; a bunch of

professional traders (like me) are buying these stocks when

we see key buy signals all at the same time. Then, the stocks

start to break out and send High of Day signals to scanners

like Trade Ideas or EquityFeed, bringing in more novice

traders to buy after us, driving the price up even further!

That is exactly why I'm sharing this blueprint for FREE... The

more people that follow this strategy of finding hot stocks to

trade, the higher probability that these plays will work, so

share it with EVERYONE you know!

The key is to ride the stock like a ‘wave of momentum’ If you

understand when everyone is buying and selling, everyone

will have a great time like these surfers:

If you're a professional in any field, chances are that you

have a specialized set of tools that set you up for success.

Day Traders are no different; we use a special set of software

called scanners and screeners that assist us in finding the

stocks that have all the criteria mentioned before: A good

catalyst, low price, low float, and good trading volume. There

is no way that I would be as successful as I am as a day trader

if I didn't have the proper tools at my disposal.

In my opinion, the absolute best scanner that you can use for

day trading these types of stocks is Trade Ideas Pro. It is

hands down the most customizable software out there, you

can literally scan for any type of parameter or variable

related to a stock, create custom 'strategy' alerts, and it uses

almost no computing power unlike some other software. This

is especially important if you're running multiple monitors on

your computer; the less overall stress on your system, the

faster you'll be able to place trades.

Trade Ideas does have a monthly fee of around $100,

however your very first profitable trade should be able to

cover that cost and more. Treat trading like a business, if

your revenues exceed your expenses, you'll be profitable in

the end.

https://goo.gl/piRu5Jhttps://goo.gl/piRu5J

Whatever scanner you end up using, it should have these key

features:

Pre-Market Scanners

The ability to scan stocks during premarket is essential when

day trading during the first hour of the market. Stocks that

are active during premarket based on the 3 catalysts

described in step 1 are usually the stocks that will be active

during the day. All you do is simply scan for stocks with a low

float under 20 million shares and within a price range of $1-

$10. Load up whatever stock is on the scanner and figure out

what the catalyst is.

We now simply go down the list and check if it fits our own 'ideal' criteria. For me, LTBR, RMGN, IIJI, and OHGI look

promising to me. Their price, float, and volume are ideal for

my style of trading; however, they may not fit your style. I

then look at their charts for potential patterns and look at

news sources to see if they have any good press releases. I

use this to same checklist every single morning to build my

daily watch list.

Real-Time Alert Window

Trade Ideas can give instantaneous alerts on specific

parameters that I tell it to alert me about.

For this specific window, I have a few different

'strategies' (differences in the color coding indicate different

strategies). The one I pay attention to the most is the yellow

strategies, which indicate stocks between $1-$10 with a

float under 20 million shares, volume of at least 40,000

shares and volume

in the last 5 minutes at least 2000.

It sends me an alert whenever a stock that fits that criteria

breaks out to new highs for the day, which is extremely

useful for finding where the momentum in the market

is. OGEN went over $0.50/share within TEN SECONDS! You

would not have caught that move if you weren't using a

scanner like Trade Ideas.

One of the most useful tools that you can use as a Penny

Stock Day Trader is being a part of a trading chat room.

Remember, these Penny Stocks move because of the

cumulation of traders as a group buying and selling at the

same time, causing the stock to move in waves. If you can

understand what everyone is looking at, you can better react

to where the momentum and volume will be during the

morning trading hours.

https://www.tonyivanov.com/day-trading-chat-room

I’m offering you a FREE 1 week trial to TradeBuddy

Platinum, a membership that allows you access to my Daily

Live Trading Webinars and access into the TradeBuddy

Community chat. Within this program you will be able to

trade with me side-by-side and listen as I give constant

commentary of how I create my watch list every morning,

and exactly what I’m thinking as I trade the morning

movers. You will also gain access to a community of

hundreds of traders along the same path as you: financial

freedom through trading. Click this link to start your FREE

TRIAL

I hope this guide will help you on your journey of becoming a consistently profitable day trader! Now this guide isn't a complete crash course on how to day trade by any means, this simply gives you an idea of how to find the right stocks to trade. Like I said earlier, that is only one piece of the puzzle. You also need to fully understand Technical Analysis, Trader Psychology, and Risk Management. These are what I call the 'Three Pillars of Trading' and no trader will achieve true consistency until they master and understand the concepts tied to each Pillar! I offer a plethora of free training lessons on my YouTube Channel, which can be simply found by typing 'Tony Ivanov' In the search bar. If you still need more guidance, feel free to check out my Penny Stock Mastery Lifetime Mentorship program on my website www.tonyivanov.com

https://www.tonyivanov.com/register/tradebuddy-platinum-monthlyhttps://www.tonyivanov.com/register/tradebuddy-platinum-monthlyhttps://www.youtube.com/c/tonyivanovdotcom?sub_confirmation=1

Be sure to follow me on my social media pages in order to stay up to date with what I'm doing and how im trading, as well as special offers and lessons!

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I wish you luck on your journey to becoming a successful day trader. Don't forget, you're only one pattern or strategy away from true consistency so don't give up!

Tony Ivanov

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