This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

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.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
SCON $1.28 0.00%
RVLT $1.11 0.00%
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs