Micro-cap Movers and Shakers From Tosh Lines, 10th January 2020

New year, new start. Time to re-visit the trading rules, tweak them, and go again. Every disciplined Trader lives and dies by a set of rules. I have these printed off and stuck on my office wall. They help to keep me focused.

  1. Penny Shares are for trading not investing. Trade the ticker, never believe the hype or the story.
  2. Trust no-one. The world of Penny Shares is full of unscrupulous characters trying to line their pockets with my money.
  3. Find a trading edge, stick with it when I am winning, find a new one when I am losing.
  4. Create a trading plan for every trade, always stick to my plan, never deviate from it. Be disciplined at all times.
  5. Protect my capital at all times. Accept that losing is part of the game. Aim big, miss small. Don’t let small losses turn into big problems. Hold and hope is not a strategy.
  6. Accept that the market is irrational and the collective will of the market will move share prices in whatever direction it wants. Never revenge trade when the market beats me, accept it gracefully.
  7. Stay patient, wait for the best trading set ups to come to me, i.e. those with the best Risk/Reward ratios. Never chase trades.
  8. Trade without emotion. If I make a large profit, do not get cocky and think it will happen on every trade. And equally, if I make a loss, do not get despondent. Review the winning/losing trade, learn from it, and go again.
  9. Do not trade position sizes so big that my emotions take over from my trading plan. Take smaller positions in higher risk plays.
  10. Do not over trade, i.e. just for the sake of it/out of boredom/I have had a series of wins and feel invincible. If there are no good set ups, the best trade is to not make one at all.
  11. Compound my wealth slowly rather than chase rainbows with a get-rich-quick mentality.
  12. Focus solely on my game, ignore the noise around me. Spend limited time on social media.
  13. Be honest, the industry is full of fake people. Admit my winners and my losers.
  14. Take regular breaks from trading, don’t sit slumped in front of my pc for hours on end. Eat healthily, take regular exercise, get plenty of sleep. A healthy mind/body has more energy and a faster thought process.
  15. Continue to educate myself on how Trading, AIM and Penny Shares work. Never think I am ahead of the market even though I am a profitable Trader. Refine my skills and study study study!

And on that bombshell, despite the threat of World War 3 kicking off recently, the markets didn’t take too much of a kicking, and as usual Gold provided a good opportunity to make some money. For any new Trader out there, who hasn’t cottoned onto this fact, whenever there is a major threat to the global economies such as 2 nations threatening to blow each other up, investors/traders and the like, all jump on the Gold bandwagon. It’s a safe haven and easy money. You are welcome 😊

The FTSE AIM All-Share seems to have found a new range, bouncing around the 960 area. It’s not far off last year’s high of 974.88. Let’s see if it gets a second-wind and tests it’s previous highs over the coming days/weeks.

It certainly looks possible, as once again, there were a number of good micro-cap plays this week offering Traders the chance to make big returns.

Webis Holding plc

Having traded sideways on low volume for a number of sessions, this week saw TICKER: WEB shoot up 175% from a low of 1.2p to a high of 3.3p. Looking at the chart, you can see it is clearly a good old pump and dump. The shares ended the week not far off where they started it.

The below Daily chart highlights a clear strategy on how to have traded this…

Buy signal: a huge breakout in volume, a bullish engulfing green candlestick on Monday, breakout above the 8EMA (yellow line), the 20/50/200MA, and recent resistance at 1.9p.

Sell signal: drop off in volume, bearish harami red candlestick on Wednesday.

Other micro caps providing good trading opportunities were: TICKER: ARG which surged 141% from a low of 2.7p to a high of 6.5p, TICKER: ASLR which spiked 99% from a low of 25.02p to a high of 49.70p, TICKER: DISH which increased 91% from a low of 1.41p to a high of 2.7p, and TICKER: ADAM which rose 79% from a low of 19.5p to a high of 35p.

Not a bad start to 2020 if you rode any of the above plays. From what I’ve read on social media there are plenty of Traders out there killing it at the minute. Well done!

In a bit Tosh

Author: Tosh Lines

I am a full-time trader who focuses on micro-caps, a freelance writer, and when I am not staring at the screens I am most likely climbing 3 mountains in 1 day for charity 

Please note: I have a new Twitter account @_TradeTheTicker please give me a follow!

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