“If you’re not succeeding, you’re doing something wrong. Don’t just keep doing the same thing; study your mistakes.” Mark Minervini.
Talk about stating the obvious Mark, but hey it’s true. If you haven’t made money in November, especially with all the opportunities I’ve highlighted in my articles, ask yourself why not? What are you doing wrong? What can you do better? Admitting you are making mistakes is one of the hardest things to accept as a person let alone as a trader. I still make mistakes, but I have learned to accept them, and work out a way to not make them again. Hence, I’ve been single for 4 years. Joking. But as a trader, I am forever reviewing my trades to understand what I did right and what I did wrong. It keeps me sharp between the ears.
The FTSE AIM All Share continued its recent impressive run. The Daily chart shows 12 green candles in a row, which is fantastic. This week it peaked at 923.95 before closing at 922.48. There is still a long way to go before it reaches the year high of 974.88, but with a month to go and Santa preparing his reindeer for a rally, I wouldn’t bet against it from continuing its upward trend.
November has been an excellent month across the junior market. Below are 10 of the biggest movers and shakers, the returns from their lows to their highs has been staggering:
1. TICKER: INSP +775% (low of 0.032p to a high of 0.28p)
2. TICKER: PET +575% (low of 4p to a high of 27p)
3. TICKER: AFC +464% (low of 5p to a high of 28.2p)
4. TICKER: ROCK +392% (low of 0.325p to a high of 1.6p)
5. TICKER: IMM +367% (low of 6.91p to a high of 32.29p)
6. TICKER: MNRG +300% (low of 0.25p to a high of 1p)
7. TICKER: CLON +235% (low of 0.40p to a high of 1.34p)
8. TICKER: ORCP +216% (low of 0.19p to a high of 0.60p)
9. TICKER: GLIF +162% (low of 2.1p to a high of 5.5p)
10. TICKER: IGE +156% (low of 1.365p to a high of 3.5p)
And on that bombshell, below are some of this week’s movers and shakers.
Rockfire Resources plc +338%
Rockfire Resources plc (TICKER: ROCK), formerly Papua Mining plc, is engaged in exploration for gold and copper resources in Papua New Guinea.
This week its share price soared from a low of 0.365p to a peak of 1.6p, a whopping 338% increase, after it announced drilling to test a geophysical target had returned consistent gold assays indicative of a large-scale gold deposit. Huge news and huge gains to be made for those buying in early.
For any newbie traders out there wondering how to trade plays which spike hard/fast on huge volume, a pattern I was taught to look out for by a very successful penny share trader, and one that I see play out time and time again is highlighted in the below chart.
The share price spikes big initially, takes a breather/drops as early profit takers lock in their gains, and then it continues to spike north. As such, this gives you a support and a resistance level to work with and helps you to calculate your risk/reward to see if you can stack the odds of success in your favour. Of course, you have to think and act super-fast as these kinds of plays are lightening quick.
Take the below 1-minute chart as an example, rather than buying in blindly as it gapped up on open and spiked wildly, waiting patiently for it to find a resistance level (which it first did at 0.74p) and then a support level (which it did many times at 0.65p) would’ve enabled you to use these two levels to calculate your risk/reward and determine your entry/exit prices. Such as, selling, had it repeatedly failed to break resistance at 0.74p or it broke support at 0.65p.
I have learned over the years that having this kind of disciplined approach, has enabled me to cut out the mistakes (such as buying in to a trade blindly without assessing the risk/reward), and keep my losses to a minimum. As a new trader or perhaps a long-term trader who is struggling, instilling discipline into your trading plan should be your number one priority.
Well done to everybody who rode this huge wave.
Other micro caps which provided excellent trading opportunities this week were ImmuPharma (TICKER: IMM) which spiked 367% from a low of 6.91p to a high of 32.29p, Clontarf Energy (TICKER: CLON) which jumped 235% from a low of 0.40p to a high of 1.34p, Petrel Resources (TICKER: PET) which continued its recent rise by spiking another 209% from 8.75p to 27p and Oracle Power (TICKER: ORCP) which rose 155% from a low of 0.235p to a high of 0.60p.
It’s been another strong week which is great to see. I know some traders who have already packed up for Christmas which says it all. There’s gold in them hills and they have taken advantage of it.
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 @_MarysBoys
Twitter: @DCI_ToshLines
Disclaimer
Tosh Lines has not been paid to produce this article by the company or companies mentioned above. A donation has instead been made on his behalf to charity.
This article is for educational purposes only. Information contained within this article does not constitute any form of advice or recommendation and is not intended to be relied upon by readers for investment decision-making purposes.
