21-Year-Old, 6-Figure Trader Shares His Tips for OTC Patterns

The chart that I like to look at for these is the 15 day, 15 minute.. So after it goes on its run, then I like to look at how it's consolidating and ( upbeat music ) OTC versus listed. So what does OTC even mean OTC means over the counter, and these securities are traded via dealer network as opposed to a centralized exchange.

. So when you put in an order to buy a NASDAQ stock, it goes through an electronic maker and it automatically executes. Your trade., So NASDAQ stocks can have a lot more manipulation and a lot more moves that are uncalled for, that don't really make sense.

And with OTCs it's. A lot of makers manually entering the orders, putting them on the bid putting them on the ask., So they're, just a lot more fluid in my opinion.. So why do OTC stocks have a bad reputation, A lot of people on Wall Street? They have way too big of accounts way too much capital to even trade.

These stocks.. These stocks are really just meant for old people that want to put two three grand into a penny stock because they think it's. Gon na be the next Amazon., And everyone says they're, a scam because they don't know how to take advantage of the scam or the promotion.

. Why do I believe that OTC stocks are easier than NASDAQ? Well, like I was saying, OTC stocks are a lot more slower and NASDAQ stocks they just they do a lot more weird stuff and shorts are a lot more involved.

There's, a lot more fundamental importance in OTCs or not OTCs NASDAQ. And the Daily chart, for me, always tells the story. And with NASDAQ the daily charts are always crazy, but with OTCs, if you ever noticed, the daily candles make a lot more sense when it comes to buying breakouts, shorting first red days and first green days.

. The daily charts make sense, and they don't really make sense with listed stocks.. So why do I believe that beginners should start with OTC ? I think that beginners should start with the OTC because for small accounts they're.

Probably the best thing to trade because they're, the lowest price usually - and you can make really fantastic percent returns. There's, no after hours or pre trading. So it's. Low odds that you get caught in a massive gap down like you, could potentially get caught in an offering with a listed stock.

And if you're all in on a small account. You're down, 50 % and you can't even cut your loss because the stock is just gonna immediately gap down and that's really scary to me. What are the best times to trade OTC stocks.

So the best time of day for me is late. Day., That's, usually where I like to buy after the stock has proven itself. It has held up. It's, doing good volume.. It has all the criteria to continue further.

, And then I like to take profits in the morning, because that's when the second wave of buyers come in.. That's when you should be selling. And then the best times of year. To trade OTC stocks from what I've, seen so far the end of the year and the beginning of the year.

During the summer it's been really slow and it's. The same thing as midday. Midday is slow, the summer is slow., The start is good and the end is good. And then what are the best OTC patterns So my favorite OTC patterns, I'm gonna go over right here on this next few.

Slides. So penny stock breakouts.. This is specifically talking about stocks that are priced between a cent and ten cents., Not dollar stocks, not three dollar stocks.. I want to specifically talk about the really low priced stocks.

And what I'm. Basically, looking for is for the stock to go on a run and then stay near its highs and go sideways., And what I'm looking to capitalize on is that secondary spike that multi day breakout is what I'm.

Looking to take advantage of. And what will make the move more explosive is little to no overhead resistance. So there's, less sellers on the way up when it does breakout. There's, a catalyst there's, massive volume and then ideally, it's in a hot sector.

And all these things that all these Things would make the breakout way more explosive. And the chart that I like to look at, for these is the 15 day. 15 minute.. So after it goes on its run, then I like to look at how it's consolidating and how the run was.

The first run that it made. Was it clean. Was the stock faking green to red every morning? Did it not hold its highs? Did it not hold the review opp all day? I want the cleanest possible stock.. Ideally it spikes.

It goes sideways, it spikes. It goes sideways. It spikes. The stair stepper pattern that Tim always talks about., So you can stay long during it and you're, not gonna get faked, out. VYST, so this stock was awesome.

. As you can see, it made an awesome run up from basically nothing to five cents. And then for five days the stock went sideways.. As you can see. On the 15 day 15 minute, the stock went sideways, especially these last few days.

. You can see that the range got tighter and every single day that the stock got more and more and more tight. And then on Monday the stock released a press release. And then, as you can see in the morning, volume started to come in.

That's when I took a fourth of my location., I bought 50 thousand shares right out of the gate and I was risking green to red. And then, as the stock breaks out. I add another 50 thousand shares and I'm, still risking green to red.

But now the win percent is higher, because now it's, a confirmed breakout. And then, when the stock comes down and then, as you can see, those three red candles right there, the stock held the breakout perfectly.

And then, when it started to perk Off the breakout that's, where I'm, adding my full size and I get up to 200 thousand shares from about a 636 average, and I change my risk to that level. Looking consolidation.

, Because if the stock breaks down below that I don't want to be long anymore because it & # 39. S proven that I can't hold the breakout level. And then from there the stock had a really nice slow grind all the way up to about ten cents.

That day before the first harsh pull. And I sold this stock out into pieces into the strength - and I got out for about a two cent - gain. And the stock - went all the way to 16.. So I left a ton on the table, but I can't be mad because I made 4,400 and I was risking a very small amount.

As I slowly sized in I'm, pretty sure my final risk on the stock. I had 200 thousand from a 636 average and I was risking 61 or a very small amount., So I was still achieving great risk reward and that's, really all that matters.

ALYI. This was probably my favorite set up of the entire year.. As you can see, the stock had three beautiful green days on the daily chart and if you notice too, it was on increasing volume which is really nice.

. I like to see the stock as it keeps going more and more volume to get into the stock. And then something that I use to tell myself. If the stock has a good potential of breaking out again is for the stock to hold half of its spike.

. So, for instance, this spiked exactly from a penny to three cents. And then the stock came down and held two cents for two days perfectly., As you can see on the 15 day, 15 minute there. On Monday, it came down to two cents and then perked off a little bit and then closed sideways.

And then the second day it didn't break down it held again and then went sideways into the close.. And then, when the stock had a morning spike on Wednesday, that's. When I get interested because the stock has proven to me that it can hold half its spike.

, The stock can go on a three day green streak, as you can see from the first run.. So that's. When I start nibbling a little bit and buying some shares. Near the late day when it broke of a high day., I put a little bit on just to keep it on watch for tomorrow.

And then the next day it had a small gap up and they Dropped a press release and, as you can see there on Thursday, massive massive massive volume came, in. Absolutely astronomical volume on the daily chart.

, As you can see, the stock traded 75 million plus shares. And that's, just amazing to me.. So then, as it started, spiking I add into my location and I got up to 500 thousand shares from a three cent average, which is about the breakout level.

, And I was basically just risking break even on it. If it failed to hold the breakout. I was just gonna cut. And the stock kept going and I sold that for almost four and a half cents. And, as you can see, it went all the way to seven.

. So once again, I left a lot on the table, but I was still happy with my gain on this one. I made about 6,700., Hey Tim Sykes, millionaire, mentor and trader.. Thank you for watching my videos.. I hope that they help you.

. I want to share everything that I've learned over the years.. You can check out more videos right over there. And also click subscribe, so that you can watch all of these videos, get that knowledge and become my next millionaire student.

. The chart that I like to look at for these is the 15 day 15 minutes. So after it goes on its run, then I like to look at how its consolidating and OTC versus listed. So what is OTC even mean OTC means over the counter, and these securities are traded via dealer network as opposed to a centralized exchange.

So when you put in in order to buy a Nasdaq stock, it goes through an electronic maker and it automatically executes your trade. So you know, NASDAQ stocks can have a lot more manipulation and a lot more moves that are uncalled for, that don't really make sense, and with the OTC s it's.

A lot of makers manually entering your orders, putting them on the bid putting them on the ass, so they're, just a lot more fluid in my opinion. So why do OTC Sox have a bad reputation, a lot of people on Wall Street? They have way too big of accounts.

You know way too much capital to even trade. These stocks, these stocks are really just meant, for you know old people that wan na you know put 2 3 grand into a penny stock because they think it's, going to be the next Amazon and everyone says they're, a Scam, because you know they don't know how to take advantage of the scam or the promotion and pom.

Why do I believe that OTC stocks are easier than Nasdaq? Well, like I was saying, OTC stocks are a lot more slower and NASDAQ stocks. They just they do a lot more weird stuff and shorts are a lot more involved.

There's, a lot more fundamental importance in OT season or not o DC's. Nasdaq and the daily chart for me always tells the story and with Nasdaq the daily charts are always kind of crazy, but with OTC s, if you ever noticed like the daily candles and make a lot more sense when it comes to buying breakouts shorting first red Days and first green days, the the daily charts make sense and they don't really make sense with listed stocks.

So why do I believe that beginners should start with the OTC ? I think that beginners should start with the OTC , because you know their first small accounts. They're, probably the best thing to trade, because they're, the lowest price.

Usually - and you know you can make really fantastic percent returns there's, no after hours or pre- trading, so it's. Low odds that you get caught in a massive gap down like you, could potentially get caught in an offering with a listed stock, and if you're all in on a small account.

You know you're down 50 percent and you can't. Even you can't even cut your loss because the stocks just gonna immediately gap down and that's really scary. To me, what are the best times to trade OTC stocks so the best time a day for me, is you know, late day that's, where usually, where I like to buy after the stock has proven itself, it has held up it's doing good volume.

It has all the criteria to you know, continue further, and then you know I like to take profits in the morning, because that's when the second wave of buyers come in that's when you should be selling and then the Best times the years to trade, OTC stocks from what I've, seen so far the end of the year and the beginning of the year.

You know during the summer it's been really slow and it's. The same thing as midday like midday, slow, the summer slow, the starts good and the ends good, and then what are the? What are the best OTC patterns? So my favorites patterns, I'm, going to go over right here on this next few slides.

So penny stock breakouts. This is specifically talking about stocks that are priced between a cent and 10 cents, not dollar stocks, not three dollar stocks. I want to specifically talk about the really low priced stocks and what I'm.

Basically, looking for is for the stock to go on a run and then kind of stay near its highs and go sideways, and what I'm looking to capitalize on is that secondary spike that multi-day breakout is well.

I'm. Looking to take advantage of and what will make the move more explosive is you know little little to no overhead resistance, so there's, less sellers on the way up when it does break out. You know there's, a catalyst there's, massive volume and then, ideally, it's in a high sector and all these things that all these things would make the breakout way more explosive and the chart that I like To look at for these is the 15 day 15 minutes.

So after it goes on its run, then I like to look at how it's consolidating and how the run was. The first run that it made like was it clean. Was the stock faking green to read every morning? Um did it, you know not hold its hold.

Its highs did not hold the review up all day. I want the cleanest possible stock. You know, ideally it spikes. It goes sideways. The spikes to go sideways. The spikes like the stair stepper pattern that Tim always talks about, so you can stay long during it and you're, not gonna get faked out view is T, so this stock was awesome.

As you can see, it made an awesome run up from basically nothing to 5 cents and then for five days the stock went sideways. As you can see. On the 15 day, 15 minute, the stock went sideways, especially these last few days.

You can kind of see that the range got tighter and every single day the stock got more and more and more tight and then on Monday the stock released a press release and then, as you can see in the morning, volume started to come in and you Know that's when I took a fourth of my location, I bought 50,000 shares right out of the gate and I was risking green to red and then, as the stock breaks out, you know, I add another 50,000 shares and I'M still risking green to red, but now the wind percents higher, because now it's, a confirmed breakout and then when the stock comes down and then, as you can see, those three red candles right there.

The stock held the breakout perfectly and then, when I started to perk off the breakout, that's. Where I'm, adding my full size and I get up to 200,000 shares from about a 6 3 6 a ver egde, and I changed my risk to that level.

Looking solid ation, because if the stock breaks down below that I don & # 39, t want to be long anymore, because proving that I can't hold the breakout level and then from there the stock. You know had a really nice slow grind.

All the way up to about 10 cents that day before the first harsh pull - and you know I sold the stock out in two pieces and strength - and I got out for you know about a 2 cent gain. The stock went all over sixteen.

So I left a ton on the table, but I can't be mad because I made four thousand four hundred and I was risking a very small amount, as I slowly sized in I'm, pretty sure my final risk on the Stock, you know I had two hundred thousand from a 6-3 six Everage and I was risking like six one or you know a very small amount, so I was still achieving great reward and that's, really all that matters aoi I this was probably My favorite setup of the entire year, as you can see the stock had three beautiful green days on the daily chart and if you notice it was on increasing volume, which is really nice.

I like to see the stock as it keeps going more and more volume to get into the stock and then something that I use to tell myself and to tell myself if the stock has a good potential of breaking out again is for the stock to hold Half of its spike so, for instance, this spiked exactly from a penny to three cents, and then the stock came down and held two cents for two days perfectly, as you can see on, you know the 15 day, fifteen minute there on Monday.

You know it came down to two cents, then perked off a little bit and then closed kind of sideways and then the second day. You know it. Didn't break down it held again and then kind of went sideways into the clothes.

And then, when the stock had a morning spike on Wednesday, that's. When I get interested because the stock has proven to me that it can hold half at spike, the stock can go on a three-day green streak, as you can see from the first run, so that's.

When I started you know nibbling a little bit and buying some shares near the late day there one it kind of broke over hide a you know. I put a little bit on just to keep it on watch for tomorrow and then the next day it had a small gap up and they drop the press release and, as you can see there, on Thursday, massive massive massive volume came in absolutely astronomical volume.

On the daily chart, as you can see, the stock traded like 75 million plus shares and that's, just amazing to me. So then, as I started spiking, you know, I I add into my location and I got like 500,000 shares from a 3 cent average, which was about the breakout level, and I was basically just risking breakeven on it if it failed to hold a break.

Oh, I was just gonna cut and the stock kept going, and I saw that for almost four and a half cents and as you can see, you won all these seven. So once again I left a lot out of table, but I'm. Still happy with my gain on this one, I made about 6,700, hey Tim site's, millionaire, mentor and trader.

Thank you for watching my videos. I hope that they helped you. I want to share everything that I've learned over the years. You can check out more videos right over there and also click subscribe so that you can watch all of these videos, get that knowledge and become my next millionaire student