A lot of beginner momentum traders go with the herd. They buy when a stock is going up, and often too high. But there is a safer way to trade momentum small-cap growth stocks. It’s to actually do due diligence on the best players and to buy on the dip. Remember the buy low sell high?
If you do this over time, the ROI is far higher. After a stock peaks you wait for the lowest low you can find and load up for the next spike, always using the chart’s history as your determining factor, not social media amplification hype.
At the Last Futurist we want you guys to win, so with that being said, here are some stocks to buy at the lowest possible point. If you had done this with cannabis stocks before the rally, you’d already have a portfolio full of big greens. You’d also know to hold since the retail recovery and cannabis legalization movement provides the best double catalyst around.
With the Fed, low interest rates and unprecedented liquidity in the markets, it’s the best time in history to trade small-cap momentum stocks. However, that doesn’t mean that you shouldn’t buy low and sell high, right? Your price target exit is not what’s important, your buy on the dip rate is what really matters for momentum trading.
Simply load up on the better stocks where the chart’s history is more favorable with solid due diligence (not Reddit or YouTube).
Buying Small-Cap Momentum Stocks ‘on the dip’ in a Crazy Bull Market Works Well
This is how you buy on the dip during the retail recovery of 2022. Some of these stocks are long holds. As always, use your own due diligence. The best momentum traders buy at least 30-50% lower than anybody else and know how much to hold with an optimal level of greed/fear that is patient but not too attached to the stock (if you get emotionally attached to a stock that’s a red flag). Remember, these are just numbers on a screen. They are not your lover, though they might buy you dinner if you are lucky.
- $ENKS – a buy at $0.18
- $SENS – a buy at $1.00
- $CLWD – a buy at $0.04
- $HYSR – a buy at $0.12
- $GNBT – a buy at $0.37
- $IONI – a buy at $0.33
- $BSRC – a buy at $0.06
- $XELA – a buy at $0.78
- $CTRM – a buy at $0.36
- $ATVK – a buy at $0.06
- $CHRA – a buy at $2.96
- $VDRM – a buy at $0.017
- $NICL – a buy at $0.25
- $ASTI – a buy at $0.11
- $MRIP – a buy at $0.006
- $HALB – a buy at $0.027
- $AMMJ – a buy at $0.11
- $DSGT – a buy at $0.32
- $XPEV – a buy at $29
- $ASM – a buy at $1.04
- $CBDT – a buy at $0.12
- $CHNR – a buy at $1.38
- $USRM – a buy at $0.027
- $CLBS – a buy at $1.53
In a pumped market like this one will likely be for the next 6 months, after a peak there will often be another peak, sometimes considerably higher.
Look for Growth, Sector Rotation and Real Long Term Catalysts
Obviously this does not work with every small-cap stock, but for companies you believe in that have the right balance of real growth and sector rotation it can work wonders. While running with momentum hype is fun, over the long term it won’t provide great returns because it’s hard to time.
You will get big wins and big losses, like gambling. Investing in momentum stocks with research over time is far more profitable.
Remember, the chart is always king, let its past history guide your decisions not the social amplification on Twitter, Reddit, YouTube, Stocktwits, TikTok or anywhere else. Don’t just be part of the herd, anticipate what the herd will do before they do it! I hope that helps someone out there.
At the Last Futurist we recommend only getting into stocks before or at the first 30% of the climb, never later. Picking more volatile stocks when you buy on the dip can also have faster results. You can monitor the best OTC small cap penny stocks (Under $0.10) on barcharts under the search “Hot penny stocks”. Then you can discover the $HYSR and $AITXs of the world before they pop.
Using that strategy instead of scalping for your 20-40%, you can get your 80-160% gains. Can you imagine over months and years what that adds up to?