Buy low, sell high… it’s one of the oldest trade tactics in the book.
The only problem is when you get in at the “bottom” of one of these drops, only to find that the price is falling even further.
It’s a rookie mistake that happens to the best of us.
Although there’s no way to 100% protect yourself from these price fluctuations, there are some signals you can pick up on to ensure you’ve bought into the right investment.
Here’s a SIMPLE TRICK to buying and selling shares that would’ve made you a 207% profit off this one penny stock.
About a month ago, Amyris Inc. (AMRS) was sitting at an all-time low of $1.87. Since then, the company’s stock value has climbed as high as $5.75.
A gain that would’ve TRIPLED your original investment and then some!
It’s easy enough to pinpoint these low price points if you’re looking at the stock chart, but determining whether or not this downtrend is over and done with is a different story.
So, what’s the secret to finding the “floor” to these drops?
One of the best ways is to get to the bottom of this is to look at whatever insider buys have recently taken place.
This is all public information that can give you a good idea of what’s in store for companies listed on the market.
For example, Amyris Inc. reported a buy worth $4,348,398 shortly after shares fell to a historical low point.
The news of this behind the scenes stock purchase then drove AMRS values up as much as 207%!
In short, insider buying occurs when higher-ups of the company believe that their stock is undervalued.
Because AMRS shares were just a dollar and change, insiders pumped more volume into the stock to attract public attention in an effort to boost its overall price tag.
When this happens it’s a sign of confidence in anticipated growth, which is exactly what we saw from Amyris Inc. moving forward!
You’re probably wondering how to find these insider buys, but I guarantee it’s easier than you think.
In fact, it’s as simple as visiting finviz.com or Yahoo Finance and clicking on the insider transactions section.
As a rule of thumb, the bigger the buy, the better the forecast.
This makes sense, considering Frank Kung, the director of Amyris, placed millions and millions of dollars into a single buy and AMRS shares TRIPLED afterwards.
If you notice a company’s stock price is starting to dwindle down and an insider buy has recently taken place, chances are a hefty bull rally is about to be underway.
Feel free to put this trade tactic to work as you conduct future trades and enjoy the profits that go hand-in-hand with riding these gains to the top.
