How One Of My Top Students Made $8,000 Yesterday

How One Of My Top Students Made $8,000 Yesterday*

MEMORIZE the panic pattern as it works time and time again, and several of my top students profited nicely yesterday, here's a good video overview! SUBSCRIBEto get INSTANT alerts when I post a new video outlining my penny stock trading techniques.*

Roland Wolfe here. It is August 20th, it is one pm eastern, and I'm just going to do a quick midday video lesson here. This is CVSI. I'm sure most of you have been watching it today if you're watching my video. It's an OTC. It is a weed stock, and weed stocks the whole sector's been pretty hot lately, but CVSI, in particular, has been running for a month, and before that, it's been running all year, but today we had a parabolic move.

The last two days it's moved quite a bit for a stock like this that generally doesn't move, have this much range, but Friday it dipped and then went from the 540's to the 680's. Today gaped up and went to nine bucks. I was ignoring this. Overextended. I wasn't going to chase something like CVSI up this high. No way. But it was doing killer volume, and it's doing even more amazing volume now.

It's traded almost 20 million shares today. Massive, massive volume for an OTC and that's one of the reason's I haven't been trading OTC so much this year. Is because the liquidity hasn't quite been there, so, I've been ignoring most OTC action, you know, bar some random weed swings or something like that which I haven't had many of, but CVSI it's down 40 percent now today. It's done 135 million in dollar volume. I mean, massive volume, and that's what drew my attention. I saw CVSI going parabolic.

I was going to ignore it, and then it started to panic midday, and I know Citron Research tweeted something, and I have to, I don't know the exact time. Let me see. Citron Research tweeted misrepresentation by management. Total bull case based on rejected patents the company never disclosed and continues to hype. Security Fraud, blah blah blah. These guys, you know, they are short bias, and they have a lot of good research that they do. In this case, it's about these patents, and I'm pretty sure that panic had already begun prior to this tweet. Either way, it may have aided, but we got a sweet panic.

This is just an amazing panic here but in terms of my trade. I waited to see that panic stop and a reversal on the level two in time and sales which was pretty apparent. Buying volume came in on this candle, and I was one of the buyers. I got some in the 330, or I'm sorry 530, some in the 560's and ended up with an 8k average of 555 risking 520 thereabouts. If we didn't get continuation like this and it pressed down back at this level. I may have just taken it off and eaten a small loss. Very very important. This is a very dangerous play, I mean, it's a falling knife, and it can keep going, so, if you have issues cutting losses or any real serious issues that you need to take care of you have to be careful with a place like this.

This is the kind of position where I play it very carefully, and I will take some off prematurely if need be because I know what the second leg of a panic can look like which is this. This could have easily failed here on the second or third grade candle or six bucks and then quickly pulled and you get stuck with too many shares you're in trouble, so, for me, you know the key was selling in its strength and waiting for this clear reversal on level two in time and sales, but great trade, great start to the week.*

* Results may not be typical and may vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here