The pennystocking framework and its variations still play out. It’s not an exact science, but once you understand what’s happening, you’ll see it again and again.
Learn it, but don’t just memorize the patterns. Try to understand the rationale behind them. That way you can adapt to shifting markets. And the key to long-term success is adapting.
I’ll cover the basics of the 7-step pennystocking framework in this edition of the update.
Without further ado, here are the seven steps. I’ll include charts along the way. Remember, it’s not an exact science. Look for similarities in the charts. Notice where some numbers repeat. And notice that in some of these charts, the #7 hasn’t happened … yet.
Step #1: The Pre Pump or Promotion
Step #2: Ramp
Step #3: Supernova
Step #4: Cliff Dive
Step #5: Dip Buy
Step #6: The Dead Pump Bounce
Step #7: The Long Kiss Goodnight