TM Editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

Image Source: Pexels

I sat down the other day to a surprising stock move that had already skyrocketed 700%. Actelis Networks, Inc. (ASNS), the stock in question, started making big moves after hours on Wednesday and continued to surge pre-market on Thursday. By 5:00 AM, it hit its peak and began to sell off.

Even though I thought I had missed the best part of the action, I ended up trading the stock and it became my biggest win of the day. What’s more intriguing is that the stock got halted more than 40 times throughout the day, a phenomenon that baffled even seasoned traders. Let’s dive into the recap.

Stock Recap

When I first looked at Actelis Networks, I saw a stock that had already jumped 700%. This move started after hours and continued into the pre-market. By 5:00 AM, the stock peaked and then began a steep pullback. The first thought that crossed my mind was that I had missed the big move, but I decided to keep an eye on it.

Despite initially thinking I had missed the boat, I ended up trading Actelis Networks effectively. It wasn’t easy, though, as the stock experienced over 40 halts throughout the day. The frequent halts, varying between five and 10 minutes, left many traders scratching their heads.

My First Trade on Actelis Networks - Pullback Strategy

My approach started with a pullback strategy. I waited for the green candles to be followed by the first red candle. I was looking for a bounce off the 9 moving average.

Trade details include the following:

• Entry: bought the dip off the 9 moving average at around $4.20.
• Exit: sold at $4.35 for a quick gain.

Second Trade on Actelis Networks

• Entry: bought the dip again at $3.83.
• Exit: sold when it bounced up to $4.48.

Halts for Stocks Below $0.75

Stocks priced below $0.75 halt every $0.15. These limits start at 9:30 AM and continue until 3:35 PM, after which they double to $0.30.

How Halts Work

Halts are dynamic. For instance, if the price is at $5, the stock will halt if it goes up or down by 10%. If it drops to $4.50 and stays there for 15 seconds, it will halt for at least five minutes. During the halt, people can prepare buy and sell orders, leading to supply and demand imbalances when trading resumes.

When the market opened, the halting made Actelis Networks nearly untradable. The stock opened at $3.71, then dropped to $3.52, and halted. This cycle of halting up and down continued all day, making it extremely difficult to get in and out of trades.

Other Stocks Traded - XTI Aerospace, Inc: Riding the Momentum

I also traded XTI Aerospace, Inc. (XTIA), which went parabolic pre-market but then came back down. As a momentum trader, I look for fast-moving stocks and jump on the wave. I made the most money on XTI Aerospace, Inc. with a series of smart, quick trades.

• Largest position: bought 500 shares at $1.87 and traded up to $3.05, making a cool $1,600.

Greenwave Technology Solutions, Inc: Choppy But Lucrative

Greenwave Technology Solutions, Inc. (GWAV) had choppy price action, but I did manage to trade a cup-and-handle formation.

Nuvve Holding Corp: Lower-Priced But Rewarding

Nuvve Holding Corp. (NVVE) was a lower-priced stock that I bought at $1. It squeezed up to $1.70, providing a decent profit.

Yoshiharu Global Co: A Quick Ride and Quick Exit

Yoshiharu Global Co. (YOSH) was another quick trade. I bought a small position pre-market, but I quickly exited when the stock started to drop.

Trading Results

• Profit: $2689
• Trades: 4 out of 5 stocks traded profitably
• Accuracy: Solid

Overall Market Strength - S&P 500 Hits All-Time Highs

The overall market is truly impressive right now. The S&P 500 hit all-time highs, and Nvidia (NVDA) shot up by 20% after announcing a stock split. I regret not taking a position in Nvidia earlier, but I’m glad I hold some shares in my long-term account.

Strong Start for June

With $14,000 in profit so far this month, I’m already hitting my weekly average goals (Note that my results aren’t typical. See full disclaimer here). It’s a great feeling to start off the month strong. The aim now is to maintain this momentum and add some icing on the cake.

Final Thoughts - Understanding Circuit Breaker Halts

These halts can make trading difficult. They trap traders both long and short, increasing risk. I wish they could make these halts dynamic based on current prices rather than fixed thresholds.

Trade the Momentum, Cut Losses Quickly

The lesson here is to trade the momentum and always be ready to cut losses quickly. This market moves fast, and if you’re not quick, you can miss big opportunities.

Manage Risk and Live to Trade Another Day

The market looks good right now, but it’s always important to manage your risk. Live to trade another day, and keep your eyes on the prize.

More By This Author: