Hello small-cap traders my name is Bill Panetta and I am a full-time technical small-cap stock trader and the co-host of Traders Nation, known to be the largest syndicated radio and television talk show for small-cap stocks. My primary focus is on explosive stock trading opportunities in the small-cap markets.
You hear traders and investors say that you can’t use technical analysis trading small cap stocks. I’m here to tell you that you can make a fortune trading small cap stocks using technical analysis. In fact, technical analysis is your only form of protection in the wild west of small cap stock trading.
Some traders have already found out, if you’re on the wrong side of the trade you can lose money quickly. I have spent thousands of hours studying every type of chart formation and oscillator that’s known. From Cup and Handle patterns to Falling Wedges, Ascending Triangles, Bull and Bear Flags and many others. Lucky for traders these patterns repeat over and over again! A trader that uses technical indicators such as RSI, MACD, OBV, in the small-cap market puts the advantages in his / her court every time when trading stocks.
A Memorable First Experience
My first experience with small cap stocks was back in the late 1990s — I got hooked right away. My initial bankroll was $8,000 and within a few short months I was able to turn that amount into a six figure income. I couldn’t believe my eyes! My trades were very calculated, surgical like, plus they were very low risk . I wasn’t throwing darts out there hoping whatever I hit would go up. Success came through technical analysis, reading charts, and watching the chart patterns then acting on what I saw in those charts. Technical analysis allowed me to hit home runs at a very consistent rate and they can do the same for you.
The Crash Of March 2000
On the internet I could be found at bobz.com. Some of you old-timers may remember the web site and that my screen name was Omnitrader. In the middle of March 2000, I made the call that no one was willing to make or could make. I said the market had topped, the big money has been made and it’s over. Some didn’t think so and ultimately ended up giving their bankroll back to the market with bad trades.
It was a very sad day for me when I had to walk away from the small-cap market. The one market that I truly loved and was fascinated with ended. I had to walk away — any good trader with good instincts pays attention to their surroundings. If the trading system that you used to make a lot of money with suddenly stop making you money, that’s a signal telling you the market is changing and you need to be willing to make the changes with the market. The stock market is a living, breathing “thing”, and you have to adapt to that change or you’ll be out of business real quick.
The OTCBB exchange was done (for now) and I moved onto the broader markets, mainly NASDAQ. I discovered there were loopholes in the NASDAQ system and was able to make easy money day in and day out trading NASDAQ stocks such as Intel, Microsoft, and Cisco. Again, I had made adjustments as any smart trader would do to survive as a full-time trader. I found a very comfortable niche trading these stock’s with ease. In 2001 this all came to an end when NASDAQ implemented the Super Soes trading system.
My income dropped 80% overnight! Again, any good trader with good instincts pays attention to their surroundings, I had to make adjustments to survive as a full-time trader.
If it wasn’t for the S&P futures I probably wouldn’t be the trader that I am today. I found out really quick, what it took to survive in a market that was against you — you had to be a great technical trader, plus you had to have a lot of self discipline.
The S&P futures forced me to work really hard at the technicals and on my trading discipline. I was able to come up with a very good mechanical trading system, the same system I apply to small-cap trading.
2003 Saw A Bottom
The stock market made a bottom in March 2003. I took a look at a few small cap stocks and discovered there were some big moves that month. Examples: I saw HRCT run from under .05 to over a 1.00 in weeks and LRSY run from under .10 to over 1.00. I had not seen these kinds of moves since 2000. I was excited to make my move back into the small-cap markets (which was really my first love). Because of all the knowledge I gained up until this point, I came back stronger and better prepared to make even bigger money than the first time around.
I met up with few of the old-time traders from the bobz.com era at Investors Hub with Patsy the queen of IHUB. It didn’t take long for traders to home in on my technical charting skills of small cap stocks. The screen name omnitrader spread like wildfire once again just like the last time but even bigger and stronger.
Over the coming months I started my own board on IHUB called Breakout Trading. That board exploded onto the scene like no tomorrow and became very popular. Breakout Trading was the first board that laid out a comprehensive technical plan for trading small-cap stocks.
Breakout Trading Was Born
The creation of Breakout Trading was my way of giving back to the small-cap community. This was a special board because it gave traders not only a chance to find some of the best small-cap stock stocks around, but it gave everyone a chance to get better at technical trading. In my opinion this board set the tone for the small-cap traders forever. Everyone got technical analysis “fever” after that. Today I am very proud to say Bill Panetta has directly or indirectly had an impacted on a lot of traders in the small-cap community. I’m proud of the fact that I helped small cap traders shorten the learning curve so they could get to a success level of trading much faster.
Remember one thing there were no Bill Panetta’s to teach me how trade 10 years ago. I have learned everything on my own through trial and error. Something that new young traders don’t have to go through any more because of traders like myself that are helping other traders improve their trading skills.
Bill Panetta is the first small-cap trader ever hold a live trading seminar for trading small cap stocks. It has never been done until now, a major milestone at the small-cap level.
I have worked closely with www.microcaptrade.com one of the top scanning platforms for small cap trading. I am personally responsible for the addition of microcaptrade’s news filter that lets you filter news by price and volume — that has never been done in the industry until now. I am also responsible for the pink sheet level II on the Esignal Charting Platform.
As my popularity grew on message boards, I was approached by Kurt Schemers creator and host of Traders Nation, known to be the largest syndicated radio and television talk show for small-cap stocks to be a regular co-host of the show. You can catch me on Thursdays and Fridays at 11 a.m. EST I talk about the latest movers in the small-cap market. http://www.tradersnation.com/television.shtml or http://www.tradersnation.com/radio.shtml##anchor3
Just remember one thing, if the small-cap market (OTCBB exchange) made some drastic changes to the system that would make your income drop overnight, are you good enough to trade other markets? If you want to trade full-time for a living you have to be prepared for changes in these markets at all times.