don't chase stocks that are up 300% talking about PRP oh and why it's a bad
idea to chase stocks that are up over 300% talking about it in this video so
stay tuned what's going on guys so I want to make this little video kind of
talking about how dangerous these stocks can be sometimes how dangerous these
very volatile stocks can be in terms of losing a lot of money
PRP Oh went crazy this morning it went up from 50 cents up there to a dollar 75
so a massive move and you know I saw a lot people posting about how they bought
it in a dollar 40 a dollar 50 area and they were kind of buying it through
these halts and I'm sure a lot of people actually got dumped on right here as
well because these three halts just kind of screwed everybody up and stopped
Aldo mentum and the stock was basically done and it's very important to
understand that just as fast as a stock can go up it can go down even faster so
there's a good chance that PRP Oh could be back at 50 cents by the end of the
day it really could it could literally be back exactly where I started at and
you could lose a lot of money here so let's say you bought 5,000 shares there
on PRP oh they're at the dollar 50 area thinking it's gonna go to the moon well
then all of a sudden he gets halted gets halted and now it's coming back down you
can't sell its halted again and then BOOM
where are you selling out you can't sell till the dollar 20 here you win these
stocks just start going crazy and it looks like they're just gonna go to the
moon they're probably gonna get halted or they're gonna have an issue they're
gonna crash so you want to be very careful you can see the 1-minute chart
here on PR P o and kind of get an idea of what was really going on here so the
volume was increasing volume was increasing volume was increasing here
through this move so the market opened stock starts moving you get this move
from 50 cents up here to 80 cents so at that point it's like okay all the
scanners are picking it up people are starting to buy I'm consolidating right
there those three candles and then we start making new highs mid new hot start
making new highs and then start to get this break over $1 so that break over $1
there that's where I jumped in at I jumped in at the break of $1.00 with the
idea that okay I'm looking for that break
over $1 possible 110-120 area and I'm kind of jumping out and you can see it
got up here $2 Oh $8 Oh $8 10 there on these next three candles so similar
patterns so we got this you know boom big green candle get this consolidation
has to kind of come closer to the EMA they're trying to find some support and
then look what happens so we're turning that dollar area into support and then
we get this big move after this it really just started to get crazy like
and you can see it goes from a dollar up here to a dollar 34 it gets halted well
after that it jumps to a dollar sixty so then it's just like hey there's a good
chance this might crash for a couple different reasons there was resistance
at the dollar 45 area this jump over dollar 45 really wasn't because of the
resistance or because it was more soda speak of the halt there so it was halted
right there before that resistance and you can see what happens it jumps above
a dollar 45 gets up here to dollar 75 and then starts to crash halted four
times and this was not good so if you were buying here for this break over a
dollar 50 hopefully you got out in time you could have gotten out maybe maybe
maybe you got out in time but a lot of people I feel like we're waiting for $2
break I probably would have been waiting about $2 break if I was buying there a
dollar 50 but looking at this I was like hey it's looking too crazy it's too good
to be true so a lot of times when these stocks are too good to be true there's a
reason that it's too good to be true so I think when a stock 2 starts getting
too crazy you gotta just know when to pull the plug and to get out of it you
know when I bought their $2 it wasn't that crazy yet it was up a hundred
percent hey it's not insane yet well then it's
up to hundred percent ok now it's getting crazy and then it's up 300% now
it's I'm getting out I got to get out of it it's just too crazy here I'm taking
profit I'm definitely not buying this thing this has us going higher and
higher you can see how overextended this guy as
well a God above dollar 50 look at the 90 ma here look at the distance between
the 90 ma so the 90 ma was down at a dollar 30 well
people were buy-in the dollar $50 70 80 and about 20 cent drop there a 20 cent
drop doesn't sound like that much but on a dollar stock that's a lot of money if
you buy you know 5000 shares that's a thousand dollar loss if you lose 20
cents on this stock so you gotta be very careful and you can see what happened it
literally got back below that resistance that dollar 45 here you got halted
pulls out here to a dollar thirty and then reopened down there at a dollar ten
once they become too good to be true they start just going crazy you know
three hundred four percent move you got a really just ask yourself is it worth
it is it worth it at this point to chase this stock and that's one of the reasons
I did not trade PRP Oh once it's already just going to the boom heels like this
is not worth it you know I'm gonna buy it over fifty it might get halted it
might go a little bit higher but I think I'm basically looking at the EMAs okay
there's like a twenty or thirty cent spread here between the EMA and the
bottom these candles so I'm thinking that we're probably gonna get a pullback
and look we're pulled back down there to a dollar thirty right there at the top
of that email you got halted again so they didn't opened up below the EMA but
you can see that EMA is very important almost all these crazy moves almost all
of them will pull back to the 90 M a at some point because it's such a popular
trading indicator a lot of times people will wait people will wait for that nine
EMA area to show as support and then they'll be looking to buy because I'm
looking to buy the dip where I know other traders would be buying the dip at
as well that's the big thing when you're trading you're trying to figure out what
other traders would be doing where are they buying where are they
selling where are the short sellers and we got to always be looking at these
stocks like hey it's just too crazy I need to stay away from it when it's too
good to be true it normally is the same idea if you're on some dating app and
some girl looks like a supermodel and she's insanely beautiful and all of her
photos are amazing and you're like wow why is this girl want to talk to me and
all of a sudden she's asking you for your credit card information there's a
good chance that it's too good to be true so stay away from things that look
too good to be true if so I'm not gonna be looking for a stock that's up you
know three hundred percent it's up forty fifty cents off of the ninety ma looking
really top-heavy getting halted and bad things happening so you need to always
understand the risk when you're trading these types of stocks these stocks that
go up really fast they go down even faster