Hey, Traders,

When I first started trading, I didn’t know what an over-the-counter runner was, exactly — I just knew some of the biggest percentage gainers were these weird stocks trading under a dollar that nobody talked about on the big networks. 

Once I began paying attention, I realized that some of the best plays for small accounts are right there in the OTC market. 

But only if you know how to distinguish potential from junk.  

These types of stocks can move big and fast because nobody’s really watching them until they spike. 

Then the crowd piles in and things get interesting.

For me, the magic is the first green day, when a sketchy little stock suddenly wakes up. 

Maybe it’s up 100%, maybe more, or maybe there’s some news or another catalyst.

 Doesn’t really matter. 

What matters is volume. 

If I see volume coming in and the price holding up, I know traders are watching and a play might be coming.

Here’s what else I know.

Locked and Loaded

Once that first green day sets up, I’m watching how it closes. 

If the stock holds near its highs and volume stays strong, it’s officially on my radar. 

But I want to see that clean dip-and-rip, when a stock dips right after the open, finds support, then pushes past the morning highs with volume. 

That’s my ideal entry.

Another thing I always check is the chart history, since so many OTCs are repeat runners. 

If it’s a ticker that’s spiked before, I’m more interested. Traders remember past runners. 

Plus, this kind of situation creates a snowball effect of more eyes, more volume, and more potential.

But even when everything lines up, I’m still cautious because OTC stocks can fade just as fast as they spike. 

That’s why I always map out my entry and risk level and where I’ll take profits. 

If the stock breaks below a key level I’m watching, I’m out. That one rule has saved me more times than I can count.

Fundamentals: Good, Hype: Not Good

There’s also this mental side to OTC trading that newer traders don’t always think about. 

It’s easy to get caught up in the hype. 

You see chat rooms blowing up, or Twitter going wild, and you think you’re missing out. 

But that’s often when mistakes happen. 

So now, I try to stay as calm as possible and wait for the setup I know. I’m not going to chase just because something’s up 200%. 

That’s how people blow up accounts.

Some of my best trades come from just sitting on my hands, waiting and watching until the chart tells me it’s time to move.

It’s not exciting — but it works.

So if you’re watching OTCs, don’t just look for what’s up big. 

Look for the setup. Look for the volume, the price action, and the history. 

All of it matters. 

And most of all, have a plan. 

That’s what turns a “maybe” trade into a smart one.

Stay ready, 

Jack