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TheStreet Open House

Beware of Sharp Moves in Tiny Stocks

If Revolutionary Lighting, like Superconductor Technologies, announces an equity-raise to generate more capital, the stock could easily get slammed. The other possibility is that swing-traders and daytraders are done with this stock and have trailing stops, which could cause a cascade of selling. This eventually could present a buying opportunity in the event of a plunge, due to the long-term potential of Revolutionary Lighting. But for now, a collapse in the stock price is more likely due to the big run-up in price, small number of shares being traded and overvalued fundamentals.

-- Written by Ben Brinneman in Charlotte, N.C., owner of C Squared Trading, which teaches how to trade legitimate "penny stocks," priced between $2 and $10.

At the time of publication, the author held no positions in stocks mentioned, although positions may change at any time.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Trader Ben Brinneman, featured on MarketWatch, Bloomberg and Reuters, resides in Charlotte, NC and is the owner of C Squared Trading. Ben Brinneman started his career trading bonds for U.S. Bancorp and was an analyst for a wealth management firm. He was mentored by some master traders on the stock market and how to profit week in and week out. After assembling custom trading plans for other traders and friends, it was at that point he decided to create C Squared Trading, and teach other retail traders and investors the methods that had brought him success trading in the stock market.

Brinneman and his team have taught hundreds in a one-on-one mentorship setting via Skype or live in Charlotte. C Squared Trading's mentorship programs are built for those that are serious about learning how to maximize their trading by learning from an expert trader in a live setting.

You can also follow some of their free trades and tips on Twitter. Please visit C Squared Trading for more information on its mentoring program.

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