Top 3 Blockchain Stocks to Trade Bitcoin Penny Stocks $RIOT $MARA $XNET

Most people know about the cryptocurrency
bubble that happened at the end of 2017, where bitcoin ran from $3000 to almost $20,000 within
6 months. But did you know many day traders also played the same hype with penny stocks? Seeing that bitcoin is making a nice recovery
to 8000 now, I think this is the perfect time to recap the crypto hype we had in some of
the penny stock runs. So if bitcoin does break new highs in the next coming months, you will
be able to take advantage of the same hype by day trading and swing trading these blockchain
stocks. And also I will be sharing a personal and
terrifying story of me shorting one of these hyped up penny stocks that led to a HUGE LOSS.
So you definitely don’t want to miss this. Before we start make sure to drop me a like
on this video, subscribe and ring that notification bell to get notified first when I post new
day trading videos every week. So let’s take a look at my personal favorite
crypto penny stock, $RIOT. Funny story, before the whole bitcoin hype. This company was actually
a company developing veterinary products called Bioptix. Supposedly they made a “pivot”
in their business strategy in in October 2017, and shifted their focus on investing in blockchain
technologies, bitcoin and ethereum mining. Hence the name change to Riot blockchain. After the name change, we saw the share prices
hike from $8 to $45 in December. $RIOT stock has a market cap of $42 million. It is a small
cap with 15 million shares float. So it’s not a low float stock like $MARA, which we
will talk about in just a second. But $RIOT is part of the whole blockchain sector, and
follows the Bitcoin price action. As you can see on this daily chart. RIOT has since then be declining in prices.
Selling off from $40 all the way down to about $2.70s now. Just play the price action on
this one. I definitely would not invest in this company, same thing as the other two
stocks that I’ll talk about in a little bit. A tip for you, my valued subscribers.
Riot blockchain, has some dirt cheap options contracts. You know what I’m saying? The easiest way to play this stock back then
in the middle of the crypto bubble, is to overnight some $RIOT stock when Bitcoin makes
a new high. I’m not saying to buy or sell that stock right now. I’m just saying to
keep this stock on watch if the whole crypto hype comes back again and if bitcoin prices
pass $10,000 and heads toward one million. And just check the short interest on this
thing. 26% of the shares float is held short. If bitcoin comes back again, this stock is
gonna run to the moon. Let’s take a look at the daily chart for
$RIOT. Actually for these really beaten down charts I like to look at the weekly trend
instead. That’s another tip for you. When i chart these highly dilutive companies that’s
just been selling off. I use the weekly chart to draw out the major levels. Same thing if
I am looking to swing trade for more than a few days. So $RIOT weekly chart is below this 50 ema.
To me it needs to be able to hold above the 50 ema and also the $4.50 resistance level
for me to lean in bullish . Aslo it’s above the 50 ema that most of the people holding
the short position will look to cover. Remember the stock is 26% short. So these are the levels $RIOT has to break
above and hold in order to squeeze. Just look at how much room this thing has to to the
upside. Wooo. The real short squeeze will happen if the stock breaks and holds above
this $6.50’s level. Of course the stock’s price action will follow the crypto price
action sentiment. Let’s move to stock #2, another crypto penny
stock that runs with the crypto hype, is $MARA. Marathon Patent group. Now just like our last
penny stock RIOT. Only a small part of $MARA business is focused on crypto mining. The whole reason $MARA stock was put under
this crypto space basket, was because they have a small patent in cryptocurrency mining.
They are not heavily invested in blockchain technology at all. That’s what all these penny
stock companies did. Change their name and buy a crypto mining rig. Boom, blockchain
technology. I mean if I have one alt coin mining rig under my bed, technically im invested
in blockchain technologies too right? But what makes $MARA attractive to me to trade,
is that the stock has a low float of only 6 million shares. The float of the stock is
the amount of shares outstanding available for the public market, therefore stocks with
a low float can be easily moved up or down with momentum. I have a video on how to trade
low float stocks if you’re interested. $Mara stock has a short interest of 10%. Not
as much as $RIOT stock. But it’s still noteworthy. Remember, low float stocks added with a high
short interest is a receipt for a short squeeze to the upside. I know because i got short squeezed big time
by one of these crypto penny stocks. I’ll tell you the story in just a second. Because
recapping a devastating loss is like, getting a text from a bad ex. You just want to put
off reading it for as long as possible, but deep down you know eventually you need to
face the reality. Urgh Now let’s do some technical analysis on
$MARA. Again we are looking at the weekly chart here. Another beaten down stock just
like $RIOT. Again it’s below the 50 ema. It has to break and consolidate above it in
order to be bullish. Lots of room to run to the upside for this one. Especially when it
has such a low float. After 50 ema $MARA needs to break and hold
above this $5.50 area to run towards the $10’s possibly. This one also needs to be traded
alongside the BTCUSD chart. The next blockchain stock we’re going to
talk about is $XNET. XNET stock has a special place in my heart because… I almost lost
my pants getting short squeezed by this stock. But let’s look at $XNET. This his company
is based out of China. And supposedly are heavily invested in blockchain technologies
blah blah blah. Never heard that one before. Back to $XNET. The stock is trading around
$2 today selling off from the high of $25 in late 2017. Let’s look at this weekly
chart. Again, highly dilutive stock still under the 50 ema. It needs to break above
and hold this $5.50 mark to start squeezing. Once it reclaims that level, it has a lot
of room to run to the upside along with the bitcoin momentum. I know you guys are dying to hear my story
of being short squeezed on $XNET so let’s wait any no longer. let’s go back to the
daily chart on $XNET. On november 29 this giant red candle. I was shorting this stock.
This thing dumped all day long. They were being sued by investors and being investigated
by the SEC. so those were all bad news fundamentally. And technically speaking, this chart has been
over extended. It ran up from single digit at $8 to $27 in like two weeks. So yes it
was due for a huge sell off. So I was shorting this on this red day. Look this amazing sell
off from $19 all the way down to $13 at the end of the day. I was green, but here’s
the thing, I was upset because I didn’t size in as big as I wanted to. I only had about
⅛ size. And I didn’t catch this entire move. So the next day, I gave in to FOMO. Fear of
missing out. And one of the deadliest sins of day trading. Instead of covering all my
original short position on this gap down overnight to $11, I added to full size at the market
open. And you can see on this chart and the amount of buying volume that followed. All
the shorts were covering, large buyers were steppinging in. the buying volume bars were
clearly more than selling from the day before. This strong bounce caught me off guard. And
instead of covering my full size short like a disciplined trader should do. I held it.
And i added near the end of the day near highs around $14. And i wish the story just ended
here. I wish I could tell you I was smart enough to cover the following day when $XNET
broke the previous day’s highs again and ran up to $16. But of course, this bag holder
here wasn’t that smart. I continued holding my short through eighteen
dollars the next day. I swear I aged five years in like two days. And you can see, $XNET
started selling off after $18 the next few days. I was so relieved and happy. It finally
sold off to $12 on December 8. One whole week after I started in my short. I don’t remember my exact short average
now. It was probably in the mid $12.50’s somewhere around there. So at this point I
was green about forty fifty cents finally I had dug my way out of this bag hold. But
what do you think happened next? I still didn’t cover. I kept on holding
because I was thinking in my head, I knew I was right, this trade is finally going to
go my way now. This is a junk stock it’s sketchy and its definitely going to crash
down to $5 dollars now. And of course the exact opposite is true. $XNET ran to $15 the
next day and this dumb *** finally covered. I just couldn’t take anymore. I hadn’t
slept for more than a week, I didn’t go out, I was sized in way too big, I was mentally
and emotionally drained. So when I finally covered on December 11,
I had lost about $3/ share. It didn’t blow my account but I had lost about three weeks
worth of profit. I was devastated. To me, that was a lot of money. Maybe one day if
my channel hits 100,000 subscribers I’ll release the actual trade and position sizing.
But it really still pains me to think about this bag hold short squeeze. Here are my mistakes I did and I believe these
are all common mistakes many traders go through everyday. The biggest one is FOMO. Then oversized position.
I added to a loser instead of a winner. I bag held and gave in to hold and hope. And
most importantly, I didn’t adhere to my risk management. I didn’t cut the loss and
just move on when it was so clear the chart is going against me. This just goes back to my emphasis on risk
management. It doesn’t matter if you win 9 out of 10 times, if that 1 time you lose,
you lose two or three weeks of profit. Which is exactly what happened on my $XNET short. Most people out there love to talk about their
big wins but I think there isn’t enough information out there on potential losses
and how you should manage your risks. Trading isn’t about making profits, it should be
about how to keep it. It doesn’t matter if you make $1000 today but you lose $1200
or $1500 the next day. When you properly manage your risks and keep
your losses small, the profits will add up quickly. It really should have been emphasized
in any day trading education. But most people just love to talk about big profits, super
cars, and trade and travel anywhere in the world. But I get it, risk management isn’t a topic
that SELLS, you know, it’s not sexy to talk about and can be pretty dry to be honest.
I’ve gotten some requests from subscribers for a video on risk management. But again,
I’ll only do it if my audience actually wants to see it. So comment “risk management”
down below if you want to see a video on day trading risk reward and risk management. Man looking at that huge loss again is like
receiving a text from a bad ex months or years later. I need a beer… Make sure to drop
me a like for sharing this gut wrenching story of my big loss. But just like any failed relationships, there
are always things to learn from it. if you guys have any stories on bag holding your
losing trades, feel free to share down below so we can all learn from each other and help
each other out. This is the humbled trader, thank you guys for watching as always. And
I’ll see you next time.

61 thoughts on “Top 3 Blockchain Stocks to Trade Bitcoin Penny Stocks $RIOT $MARA $XNET”

  1. Risk Management is what I need sadly. Cursed with over-sizing. I gotta get my account out of Robinhood. They don't have stop loss on option trades.

  2. Ever have a limit stop loss order ignored as a share price plunged. I did today and did it ever confuse me at the time. Even though there was decent volume. Switched to market order and poof was out with a much bigger loss that I'd planned.

  3. Thank you for sharing your experience, I had a similar experience with Zynga ( I was on the long side not the short side like you ) when it first came out. I kept double down on my losses and I lost my shirt. Risk management is the key. Please make a video on risk management, I know it will be helpful to your subscribers. Great video, love the backround pictures ?

  4. I I remember AMD grinding up 2$ all day long, clean chart on the up side. I was long to all day as well but I manage to get a big loss. I was probably the only one in the world buying the rip selling the dip .

  5. HT, thanks for the vid (looking good in that red shirt btw). August last year I shorted AWX on day 3 and my small account was blown up.. I don’t blame guy gentile but my own self

  6. I am a new subscriber, you definitely give me a good perspective of trading stocks. Nice video keep it up

  7. Thanks for this video Humble. I knew that bitcoin's value was on the rise and totally ignored that we may see a crypto madness resurgence.

  8. well today I bought a call for $bynd only for it to go down $3. after I cut my losses it went up about $6. so ya I feel the pain. I need to do more paper trading.

  9. I am still Learning and have not jumped in with big money yet so I am only trading with a small amount of money. But even with a small amount the rush of seeing your trade go bad is crazy. I can only imagine how you must felt. I feel it with a small 10% to 15% lost. Keep up the amazing videos!! For sure Risk Management would be amazing to cover.

  10. Risk Management please! Also, could you do a video on technical analysis? I would like to see your process finding key support and resistance levels and where and when to enter a trade. Maybe you can combine in the same video ? Thanks for all your great information. I really love your channel!

  11. I think every single trader has been through the bag holder stage even some traders with many years experience.

  12. Your XNET story is the same thing I am going through CTRV right now ? I was up 3k+, short 8.20 it went down a lot, I kept holding, yesterday went to 14 dollars. Now today back to below 7 dollars. After hours is up to 8.70 again wtf ??

  13. Thank you humble trader, I' just did that mistake and blew my account this week for the 5th time in 1,5 years.
    I didnt follow risk management when I shorted PRVB. I'm doin paper trading now and only swing with with mechanical stop loss to avoid hope in holding loss.
    I would love to see your new video on risk management.
    Thank you for sharing your story.

  14. Thanks for your videos ! Could you recommend some books to read about trading stocks? And what’s your everyday routine 🙂 do you only trade the two hours when marking open? Thanks for sharing , you are awesome !!!

  15. You are so funny. Well I have to admit. I lost over $ 6,000. on Blackberry years ago. Ouch !!! Another Great Video and you sure you don''t want to give your Ex another chance. Ha Ha

  16. Just took a look at riot. $2.50 looks like a good level to get in if it holds but this Federal Investigation looks like a bear case for this stock what's your opinion?

  17. Mara has a reverse split be careful with it, they increase the shareprice and offer your more shares and sell it any Price all these pennystocks are pump and dumbs

  18. before you enter a trade you must set your Goal and have a exitplan. follow your plan not emotions . we all are somestimes to greedy

  19. also, can you differentiate the difference between short squeeze and dump? so when there is a high short interest, how can I know for sure there will not be a another dump on the stock?

  20. Recently found your channel, already watch almost all your videos its very informative i've learned a lot easy to understand specially for a new trader like myself. Hopefully you can keep making videos. What do you think about BYND this past week? did you trade it?

  21. Risk management. Also please do a video about how you make a trade plan. I'm new and I feel like I have analysis paralysis. I know I should do a scan function to look for things to trade. But how do I decide my own rules ? Can you do an in depth before you trade video? " Choose your stock, Risk management build your plan" etc etc Dx or just give me a short outline here lol. I'm confused . Do you define your rules only by getting your bumps and bruises in the market ?

  22. Thanks again for another great video! I'd be interested in seeing a video on how you started your trading career, what you did to learn and whether you had an "ah-ha" moment when things clicked for you (positively changing your trading game) or if it was just putting in in the trading hours or something else/combination of things.

  23. OMG that's very very bad, but YES, been there and done that more than once ? ?? and only traders can understand that. Thank you very much for sharing!

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