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Jan 28 6 tweets 3 min read
📜👀My rules for small caps 2023

Long #smallcaps:

1) after a bear trap, shorts trapped
2) on pullback (9EMA, JLINES, VWAP)
3) on a support with absorption
4) on fake vwap bdown open/mid morning
5) on a halt reclaim + fake washout
6) on day 2 on reclaim of main level
🚨Short #smallcaps:

1) on stuffs
2) at levels of premarket high
3) at daily levels
4) at fibonacci levels
5) after a bull trap, longs trapped
6) on JSLIM pattern
7) on hod fakeout
8) on halt pop and fail
🪪 Patters #smallcaps

1) Gap & Crap
2) Gap & Extension
3) Extensions
4) Halt & go
5) Halt pop & fail
6) Late day fade
7) Bear trap Long
8) Parabolic moves
9) Overextended plays
10) Afternoon volume reclaim long
☣️Be aware

1) don't short high volume with ssr
2) micro floats also dump and unwind
3) volume and price action are the 2 main tools
4) always trade based on specific patterns
5) high % IO + volume = harder to fade
6) news is useless
7) recognize algo activity
8) timing is all
🧪Backtesting

1) do it every weekend
2) analyze the market scenario
3) find which setups work and which ones not
4) divide all your stocks by setups
5) calculate targets for each setups
6) understand volume as main key
7) be critic with your process

#trading #smallcaproom

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More from @jtraderco

Jan 14
If you are seriously trading Small Caps, read this!

4⃣⏲️⌛️ The 4 phases of a Pump & Dump

Often #smallcaps have Zero revenue, negative balance, high cash burning ratio.
They will raise $ through offerings and in order to do this they will sistematically run into a process.
1. The pre pump 🗞️
These are so called shell companies.
The charts of these companies look almost all the same. Weekly downtrending charts with few daily spikes.
The company, big hands, insiders will often acquire the stock shares before putting out a press release.
2. The promotion 📰
They will start an offering, S-1/3, Warrants, ATM, etc and the'll wait to send out a press release. This is called "the stock promotion". The news can often be a fast track designation, license agreement, contract, etc. They will use every kind of news.
Read 10 tweets
Dec 11, 2022
Years of research, studying, mentoring traders to find out that majority of traders fail for these reasons.

The top 4 points:

1⃣ Traders are indisciplined. They have a strategy, create a plan but often they won't respect it, getting highjacked by a thought, a friend, a feeling
2⃣ Traders have no patience. They will anticipate a trade because they want to be part of the party no matter what. They will be late and still take the trade because they won't want to miss it as if that's the only opportunity in their lives.
3⃣ Traders will lack confidence. Without confidence a trader cannot use size and confidence is made by having consistency and consistency comes from:
- experience
- backtesting your strategy
- practice
Read 5 tweets
Dec 9, 2022
🔎 How to trade #smallcaps

1) $AMAM has his own structure which is categorized as explained in watchlist into ssr + high volume premarket.
The fact it does not have any overhead volume resistance lowers the forecast for a short into a 50:50. Then we have to consider the play ImageImage
2) $AMAM SWITCH BIAS
The first pattern to look for is always a pop and fail at the gate because we are trading #smallcaps. If this level of premarket high holds then you have no reason to short and you have to be able to reverse to long as in the pic shown before.
3) $AMAM POSITION
The main patterns at this point is buying dips. Shorts are trapped at premarket high and lower, volume is high and for $1stocks this means above 800K x minute. This is a 🔑 parameters backtesting 3 years of data for this category. The play becomes a runner.
Read 5 tweets

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